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South Dakota security deposit law

Source: S.D. Codified Laws §§ 43-32-6.1, 43-32-24 · Checked against the statute

Maximum deposit
No more than one month's rent, unless landlord and tenant agree to more because special conditions pose a danger to maintaining the premises.
Return deadline
21 days (see details); 45 days after the tenancy terminates (Tenant requests it)
If the landlord keeps it wrongly
A landlord who does not comply loses all right to withhold any part of the deposit. Bad-faith retention, or a bad-faith failure to give the statement or accounting, adds punitive damages of up to $200.

Calculate your South Dakota deadline

Choose your state and move-out date to see when your landlord must return the deposit.

When the deposit must be returned

  • Within 21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions, return the deposit or give a written statement of the specific reasons for withholding.
  • If the tenant asks, give an itemized accounting of any deposit withheld within 45 days after the tenancy ends.

The 21-day clock starts only after the landlord receives the tenant's mailing address or delivery instructions.

Itemized list of deductions

Required: Yes. A written statement of the specific reasons for withholding within 21 days, and an itemized accounting within 45 days if the tenant asks.

What can and can't be deducted

The landlord may withhold only what is reasonably necessary to cover unpaid rent and other money due under an agreement, and to restore the unit to its condition at the start of the tenancy, ordinary wear and tear excepted.

Nonrefundable fees

Any money meant to secure the rental agreement counts as a security deposit, whatever it is called, and falls under the one-month cap. The statute does not otherwise address nonrefundable fees.

Interest, bank account and move-in inspection

  • Interest required: No. No statewide interest requirement.
  • Separate account required: No. The statute does not require a separate account.
  • Move-in inspection required: No. The statute does not require a move-in inspection or condition report.

Penalties and bad faith

A landlord who does not comply loses all right to withhold any part of the deposit. Bad-faith retention, or a bad-faith failure to give the statement or accounting, adds punitive damages of up to $200.

Punitive damages (up to $200) require bad faith in keeping the deposit or in failing to give the written statement or itemized accounting. The statute does not define bad faith.

Getting your deposit back in court

Small claims are limited to $12,000, not counting allowable costs or attorney fees (SDCL 15-39-45.1). Court information

Before filing, many tenants send a written demand first. Write a South Dakota demand letter →

Also good to know

  • SL 2026, ch. 179 (SB 4) changed the return deadline in § 43-32-24 from two weeks to 21 days, in force since July 1, 2026. Older guides still say two weeks.

Sources

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.