South Dakota

Security Deposit Amount

In South Dakota, a landlord may not charge a security deposit greater than one month's rent unless there are special conditions, such as a pet or other risks that justify a higher deposit.

Pet Deposits: Although the general rule is that the security deposit cannot exceed one month's rent, landlords may charge additional security deposits for pets or other risks. These additional amounts must follow the same return and deduction rules.

Options for Holding

South Dakota law does not require landlords to hold security deposits in a separate or interest-bearing account. The deposit can be mixed with the landlord’s personal funds.

Notification Requirements

There are no specific requirements for landlords to notify tenants where the security deposit is being held.

Payment of Interest Earned

South Dakota law does not require landlords to pay interest on security deposits, regardless of how long the deposit is held or where it is stored. Interest payment is not mandated unless explicitly agreed upon in the lease contract.

Timeline for Returning

Landlords must return the security deposit to the tenant within two weeks (14 days) after the tenant vacates the property and returns the keys, provided there are no disputes. If the landlord intends to withhold part of the deposit for damages or unpaid rent, they must provide an itemized list of deductions within 45 days.

Claims Process

The landlord may withhold portions of the security deposit to cover unpaid rent, property damage beyond normal wear and tear, or cleaning fees if necessary. The deductions must be itemized and delivered to the tenant within 45 days. If the full deposit is not returned within this timeframe and no list is provided, the tenant may recover the entire deposit.

If the tenant disputes the deductions, they may file an action in small claims court.

Landlords in South Dakota may deduct from the security deposit for the following:

• Unpaid rent owed by the tenant.
• Damages to the property that exceed normal wear and tear.
• Cleaning fees to return the property to the same condition it was in at the beginning of the lease.
• Unpaid utility bills, if applicable in the lease agreement.

Normal wear and tear, such as minor scuff marks or regular carpet wear, cannot be deducted from the security deposit.

If a landlord fails to return the security deposit or provide an itemized list of deductions within the 45-day timeframe, they may be liable to return the full deposit. In cases where the landlord has wrongfully withheld the deposit, the tenant may be able to recover damages equal to twice the amount of the deposit.

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