South Dakota Security Deposit Law
A South Dakota landlord may collect up to 1 month's rent as a security deposit, with 1 exception to that limit. It must refund the deposit, or an itemized list of deductions, within 21 calendar days after the triggering event.
Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed
South Dakota deposit rules
| Rule | What the law says |
|---|---|
| Deposit limit | 1 month's rent (with exceptions)SDCL § 43-32-6.1 |
| Return deadline | 21 days after the triggering eventSDCL § 43-32-24 (as amended by SL 2026, ch 179), 2026 S.D. Sess. Laws ch. 179 (SB 4), § 1, SDCL § 2-14-16 (acts without an effective-date clause take effect July 1) |
| Itemized deductions | RequiredSDCL § 43-32-24 |
| Interest on deposit | Not required statewideSDCL ch. 43-32 (§§ 43-32-6.1, 43-32-24 silent on interest) |
Maximum deposit
Landlords may not demand a security deposit above one month's rent unless landlord and tenant agree to more because special conditions pose a danger to maintenance of the premises (SDCL § 43-32-6.1). (SDCL § 43-32-6.1)
One month's rent; a larger deposit may be agreed when special conditions pose a danger to maintenance of the premises
Exceptions
- Landlord and tenant agree to a larger deposit because special conditions pose a danger to maintenance of the premises (e.g., a pet) → no limit
Return deadline
Landlords must return the deposit, or give a written statement of the specific reasons for keeping any of it, within 21 days after the tenancy ends and the tenant provides a mailing address or delivery instructions (SDCL § 43-32-24). (SDCL § 43-32-24 (as amended by SL 2026, ch 179), 2026 S.D. Sess. Laws ch. 179 (SB 4), § 1, SDCL § 2-14-16 (acts without an effective-date clause take effect July 1))
Itemized statement of deductions
A landlord keeping any of the deposit must give a written statement of the specific reasons within 21 days, and on the tenant's request must provide an itemized accounting within 45 days after the tenancy ends (SDCL § 43-32-24). (SDCL § 43-32-24)
Interest on the deposit
South Dakota law does not require landlords to pay interest on security deposits (SDCL §§ 43-32-6.1, 43-32-24, silent). (SDCL ch. 43-32 (§§ 43-32-6.1, 43-32-24 silent on interest))
Penalty for wrongful withholding
A landlord who misses the deposit rules forfeits the right to keep any of the deposit, and bad-faith retention or failure to give the required statement or accounting adds punitive damages of up to $200 (SDCL § 43-32-24). (SDCL § 43-32-24)
More South Dakota deposit rules
Where the deposit is held
South Dakota landlords may hold deposits in any account they choose, since the deposit statutes say nothing about escrow or segregation (SDCL §§ 43-32-6.1, 43-32-24). (SDCL § 43-32-6.1, SDCL § 43-32-24)
Receipt or written notice of the deposit
South Dakota does not require a written receipt for a security deposit (SDCL §§ 43-32-6.1, 43-32-24). (SDCL § 43-32-6.1, SDCL § 43-32-24)
Move-in condition checklist
No South Dakota statute requires a move-in checklist, though deductions are measured against the unit's condition when the tenancy began (SDCL § 43-32-24). (SDCL § 43-32-24)
Pet deposits
South Dakota has no pet-specific deposit statute; the one-month cap covers any deposit 'however denominated' but may be exceeded by agreement when special conditions threaten upkeep of the premises (SDCL § 43-32-6.1). (SDCL § 43-32-6.1, SDCL §§ 43-32-33 to 43-32-36)
Nonrefundable fees
South Dakota law does not ban or regulate nonrefundable fees; only money that secures performance of the lease counts as a capped, returnable security deposit (SDCL § 43-32-6.1). (SDCL § 43-32-6.1)
Small-landlord exemptions
South Dakota's deposit cap and return rules apply to every lessor of residential premises, with no carve-out for small or owner-occupied rentals (SDCL §§ 43-32-6.1, 43-32-24). (SDCL § 43-32-6.1, SDCL § 43-32-24)
Deposit alternatives and installments
South Dakota has no statute on surety bonds, deposit insurance or installment payment of deposits (SDCL ch. 43-32). (SDCL ch. 43-32)
How South Dakota compares
South Dakota shares its 1-month cap with 14 other states among the 50 states and DC. Its 21 days return window: 10 faster, 32 longer.
| State | Deposit limit | Return deadline | Itemized deductions |
|---|---|---|---|
| South Dakota | 1 month's rent (with exceptions)SDCL § 43-32-6.1 | 21 days after the triggering eventSDCL § 43-32-24 (as amended by SL 2026, ch 179) | RequiredSDCL § 43-32-24 |
| North Dakota | 1 month's rent (with exceptions) | 30 days after move-out | Required |
| Minnesota | No state cap | 21 days after the lease ends | Required |
| Iowa | 2 months' rent | 30 days after the lease ends | Required |
| Nebraska | 1 month's rent (with exceptions) | 14 days after the lease ends | Required |
| Wyoming | No state cap | 30 days after the lease ends | Required |
| Montana | No state cap | 10 days after the lease ends | Required |
What changed in South Dakota
- Return deadline — current rule in effect since July 1, 2026. Until July 1, 2026: Two weeks after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions.
South Dakota deposit return deadline calculator
Example: Deadline: Saturday, February 21, 2026
21 calendar days after the triggering event on Saturday, January 31, 2026.
This date falls on a Saturday. Some states extend a deadline that falls on a weekend or holiday to the next business day; check the statute.
Weekend and holiday flags use the federal holidays in 5 U.S.C. § 6103; South Dakota state holidays are not checked.
Maximum deposit in South Dakota
Example: $2,000 a month
Maximum deposit: $2,000 (1 month's rent × $2,000; SDCL § 43-32-6.1)
Where an exception applies
- Landlord and tenant agree to a larger deposit because special conditions pose a danger to maintenance of the premises (e.g., a pet): no limit
Put the deposit terms in a lease
Write a deposit of no more than 1 month's rent and the 21-day return window into a South Dakota lease. Creating it is free with no card; an account is needed to save or e-sign.
Create a South Dakota leaseRelated
- Security deposit laws by state
- Late fee laws by state
- Landlord-tenant law changes, 2024–2027
- South Dakota landlord-tenant law
- South Dakota late fee law
- South Dakota landlord entry notice rules
- South Dakota rent increase rules
- South Dakota eviction notice rules
- South Dakota lease agreement
- South Dakota notice to vacate
- South Dakota rent increase notice
- South Dakota security deposit return letter
- South Dakota notice of entry
- South Dakota lease termination letter
- South Dakota lease renewal letter