South Dakota Security Deposit Law

By Oleg Kachko · Updated June 10, 2026

✓ Law Verified June 2026

This guide explains south dakota security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from South Dakota law, verified as of June 2026.

In This South Dakota Guide:

Key Rules
Allowable Deductions
How to Get It Back
Official Sources

South Dakota Security Deposit Rules at a Glance

Maximum deposit	1 month’s rent for unfurnished units. For pets, up to 2 months’ rent. A larger deposit may be agreed upon in writing if special conditions pose a danger to the maintenance of the premises (SDCL 43-32-6.1).
Return deadline	14 days (two weeks) after termination of the tenancy AND receipt of the tenant’s forwarding address or delivery instructions. If the landlord withholds any portion, they must provide a written statement of the specific reasons within that same 14-day window. Upon the tenant’s request, the landlord must provide an itemized accounting of any amount withheld within 45 days after termination (SDCL 43-32-24).
Itemized deductions required	YES. The landlord must first provide a written statement showing the specific reason for withholding within 14 days. Then, upon the tenant’s request, the landlord must furnish an itemized accounting of the deposit withheld within 45 days after the tenancy ends. Failure to provide either forfeits the landlord’s right to withhold any portion of the deposit (SDCL 43-32-24).
Interest on deposit required	NO. South Dakota law does not require landlords to pay interest on security deposits or place them in interest-bearing accounts.
Penalty for late/bad-faith return	If the landlord fails to return the deposit or provide the required written statement within 14 days, the landlord forfeits all rights to withhold any portion of the deposit. Additionally, bad faith retention of a deposit — including failure to provide the written statement and itemized accounting — subjects the landlord to punitive damages not to exceed 200 dollars (SDCL 43-32-24). Many tenants may also be able to recover the full deposit plus court costs.

Move-in/move-out walkthrough: South Dakota does not have a statutory requirement for move-in or move-out walkthrough inspections. However, the South Dakota Attorney General’s office recommends that tenants conduct a walkthrough with the landlord at both move-in and move-out and document the condition of the premises in writing, signed by both parties. This documentation can be critical evidence if a deposit dispute arises.

Separate deposit account: NO. South Dakota law does not require landlords to hold security deposits in a separate account, a specific type of bank account, or provide tenants with a receipt or notice about where the funds are kept.

What Your Landlord Can and Cannot Deduct in South Dakota

The landlord may withhold only amounts reasonably necessary to (1) remedy tenant defaults in payment of rent or other funds due under the lease agreement, and (2) restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted (SDCL 43-32-24). This typically covers unpaid rent, damage beyond normal wear and tear, and cleaning needed to restore the unit to move-in condition.

Normal wear and tear vs damage: South Dakota statute uses the phrase “ordinary wear and tear excepted” but does not provide a detailed statutory definition. In practice, ordinary wear and tear means the natural deterioration that occurs from normal, everyday use of the property — such as minor scuff marks on floors, small nail holes from hanging pictures, slight carpet wear in traffic areas, and fading of paint or finishes over time.

Damage from tenant negligence, abuse, or misuse (e.g., large holes in walls, burns, pet stains, broken fixtures) is not considered ordinary wear and tear and may be deducted.

How to Get Your Deposit Back in South Dakota

(1) Provide your forwarding address in writing to the landlord immediately upon move-out — the 14-day clock starts only when the landlord receives it. (2) If the landlord does not return the deposit or provide a written statement within 14 days, send a written demand letter via certified mail requesting the full deposit back.

(3) If the landlord withholds money and you disagree, request an itemized accounting in writing. (4) If the dispute is unresolved, you may file a claim in South Dakota Small Claims Court (claims up to 12000 dollars) in the county where the rental property is located.

You may be able to recover the wrongfully withheld amount plus up to 200 dollars in punitive damages and court costs. (5) You can also contact the South Dakota Attorney General’s Consumer Protection Division for guidance at consumer.sd.gov or call 1-800-300-1986.

Other South Dakota deposit rules: (1) The 14-day return clock does not begin until the landlord receives the tenant’s forwarding address or delivery instructions — tenants should always provide this in writing immediately upon vacating. (2) South Dakota’s punitive damages cap for bad faith deposit retention is unusually low at 200 dollars — one of the lowest penalties in the country.

(3) For pet deposits, the landlord may charge up to 2 months’ rent total, which is the highest deposit allowed under South Dakota law.

(4) A larger deposit beyond 1 month may also be mutually agreed upon in writing where special conditions pose a danger to the maintenance of the premises. (5) The tenant should file any security deposit lawsuit within 6 months after termination of the lease.

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Official South Dakota Sources & Resources

South Dakota Attorney General: https://consumer.sd.gov/fastfacts/landlordtenant.aspx
South Dakota Security Deposit Statute: https://sdlegislature.gov/Statutes/43-32
U.S. Department of Housing and Urban Development: hud.gov
Cornell Legal Information Institute: law.cornell.edu/wex

Understanding South Dakota Security Deposit Law

Your South Dakota security deposit is your money until the landlord proves a lawful deduction. South Dakota security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the South Dakota security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.

Document the condition of your unit at move-in and move-out — photos are the best protection for your South Dakota security deposit.

This South Dakota security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.

More South Dakota Tenant Rights Guides

Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.

Renting? Protect your belongings — compare renters insurance at Home Insure Guide. Divorce involving a lease? See Divorce Help Guide. Unsafe housing / toxic mold injury? Some cases qualify — see Mass Tort Info.

South Dakota Security Deposit Law — Limits & Deadlines (2026)