South Dakota Security Deposit Law: Limits, Deadlines, and Penalties
What South Dakota landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in South Dakota?
A landlord may not demand or receive a security deposit, however denominated, above one month's rent. A larger deposit is allowed only if landlord and tenant agree to it because special conditions pose a danger to maintenance of the premises — pets are the classic example.
A pet deposit can lawfully push the total above one month's rent only through the statute's mutual-agreement exception for special conditions that pose a danger to maintenance of the premises.
When must the deposit be returned?
The landlord must return the deposit — or furnish a written statement giving the specific reason for withholding any portion — within 21 days after the termination of the tenancy and receipt of the tenant's mailing address or delivery instructions. If the tenant requests it, the landlord must also supply a full itemized accounting of anything withheld within 45 days after the tenancy ends.
A written statement of the specific reason for withholding is required within the 21-day window, and a complete itemized accounting must be provided within 45 days of termination if the tenant requests one. Withholding is limited to unpaid rent and other sums due, and restoring the premises to move-in condition, ordinary wear and tear excepted.
What happens if a landlord misses the deadline?
A landlord who fails to comply with SDCL 43-32-24 forfeits all rights to withhold any portion of the deposit. Bad-faith retention of the deposit, or bad-faith failure to provide the written statement or itemized accounting, additionally subjects the landlord to punitive damages of up to $200.
Interest and holding requirements
South Dakota does not require landlords to pay interest on security deposits.
No statutory requirement. South Dakota law does not require deposits to be kept in a separate or escrow account.
Recent changes to the law
A 2026 amendment (SL 2026, ch. 179, effective July 1, 2026) rewrote SDCL 43-32-24, extending the return deadline from two weeks to 21 days and spelling out the permissible withholdings: tenant defaults in rent and other sums due under the agreement, and restoring the premises to move-in condition excepting ordinary wear and tear.
What South Dakota landlords get wrong
The 2026 amendment makes older guides unreliable: most published sources still say 'two weeks,' but the statute now reads 21 days, running from the later of termination and receipt of the tenant's mailing address or delivery instructions. The two-step structure is easy to get wrong — the 21-day letter only needs the specific reason for withholding, but if the tenant then requests an itemized accounting you must deliver it within 45 days of the tenancy ending. The penalties are mild ($200 punitive cap), but noncompliance forfeits your entire right to withhold, which on a full month's deposit is the real cost.
The law itself
Frequently asked questions
How long does a South Dakota landlord have to return a security deposit?
Twenty-one days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions, under the version of SDCL 43-32-24 effective July 1, 2026 (it was two weeks before that). Within that window the landlord must return the deposit or provide a written statement giving the specific reason for withholding any portion.
How much can a landlord charge for a security deposit in South Dakota?
One month's rent is the maximum, regardless of what the deposit is called. The only way to exceed it is by mutual agreement where special conditions — such as pets — pose a danger to maintenance of the premises. A landlord cannot unilaterally demand more than one month's rent even from a tenant with poor credit.
Can a tenant demand an itemized accounting of deposit deductions in South Dakota?
Yes. The initial 21-day notice only has to state the specific reason for withholding, but if the tenant requests it, the landlord must provide a full itemized accounting of any amount withheld within 45 days after the tenancy ends. Bad-faith failure to provide the statement or accounting exposes the landlord to punitive damages up to $200.
What happens if a South Dakota landlord doesn't return the deposit on time?
The landlord forfeits all rights to withhold any portion of the deposit — meaning the tenant can recover the entire amount even if there was real damage. If the landlord acted in bad faith, a court can add punitive damages of up to $200. There is no double- or treble-damages multiplier in South Dakota.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.