South Dakota Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in South Dakota?
1 month's rent. Higher allowed only for special conditions agreed in writing.
Returning the deposit: the 21 days deadline
After the tenancy ends, South Dakota gives you 21 days to return the deposit. Extended from two weeks by 2026 Session Laws ch. 179 (SB 4), effective July 1, 2026. Money back in 21 days; itemized statement within 45 days if the tenant requests it. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
South Dakota has no general statewide requirement to pay interest on residential security deposits (local ordinances can differ — check your city). Some states in this position still regulate where deposits are held; see SDCL § 43-32-6.1 / -24 for any account or disclosure rules that apply to you.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of South Dakota's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in South Dakota?
1 month's rent is the statutory maximum. See SDCL § 43-32-6.1 / -24.
How long does a South Dakota landlord have to return a security deposit?
21 days after the tenancy ends (since July 1, 2026; it was two weeks before), generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in South Dakota?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Handling South Dakota deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the South Dakota eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
Deposit disputes usually start with the wrong tenant.
Screen applicants before move-in — credit, criminal, and prior-eviction history, pay-per-report with no subscription. Your first screen also unlocks 30 days of LandlordPro Pro free.
Screen your next applicant →In a deposit dispute already? Talk to a business attorney through LegalZoom → (Sponsored)
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify SDCL § 43-32-6.1 / -24 or consult a licensed attorney in South Dakota before acting.
Raising the rent: South Dakota requires 30 days' notice before a rent increase. South Dakota rent increase laws →
Late rent: South Dakota sets no cap on late fees. South Dakota late fee laws →
Choosing landlord software
Comparing tools to track South Dakota deposits and the rest of your portfolio? These are side-by-side breakdowns written by a landlord who self-manages 13 units — pricing, what each tool does well, and where it falls short for small portfolios.
Questions from South Dakota landlords
Have a question about renting in South Dakota that this page does not answer? Ask other landlords in the LandlordPro Forum. It is free.