South Dakota security deposit law: one month, 21 days and a 45 day accounting on request
South Dakota keeps its deposit rules in two short sections. Section 43-32-6.1 caps a residential deposit at one month's rent, and 43-32-24 gives the landlord 21 days after the tenancy ends and the tenant's address is received to return it or explain what was kept.
What is the limit on a South Dakota deposit?
Section 43-32-6.1 starts by defining the term. Any deposit of money whose function is to secure the performance of a residential rental agreement or part of one is deemed a security deposit, whatever name it carries. A lessor of residential premises may not demand or receive a security deposit, however denominated, above one month's rent.
There is one exception. A larger deposit may be agreed between lessor and lessee where special conditions pose a danger to maintenance of the premises. The statute does not define those conditions or give a ceiling, so if you rely on the exception, write the reason into the lease and keep the tenant's signature on it.
What must happen in 21 days?
Section 43-32-24 requires every lessor of residential premises, within twenty-one days after the tenancy ends and the lessor receives the tenant's mailing address or delivery instructions, to return the deposit or give a written statement showing the specific reason for withholding all or part of it.
The allowed reasons are narrow. A lessor may withhold only the amounts reasonably necessary to remedy a default in paying rent or other funds due under an agreement, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted. Reasons outside those two, such as general repainting for turnover, do not qualify.
Example a made-up tenant leaves a $750 unit on August 15 and sends a forwarding address on August 18. The 21 days run from the later event, to September 8. A statement mailed on September 1 keeps $140 for a broken closet door and returns $610.
What is the 45 day itemized accounting?
The written statement of reasons and the itemized accounting are two different documents with two different clocks. Within forty-five days after the tenancy ends, if the tenant asks, the lessor must provide an itemized accounting of any deposit withheld. The tenant has to request it, but a landlord who already sent a detailed list within 21 days has most of this done. Section 43-32-24 carries a 2026 amendment in its source line (SL 2026, ch 179, section 1), so confirm you are reading the current text.
What does a violation cost?
A lessor who fails to comply with the section forfeits all rights to withhold any portion of the deposit. Bad-faith retention of the deposit or any part of it, or a bad-faith failure to provide the written statement or itemized accounting, subjects the lessor to punitive damages not to exceed two hundred dollars. That cap is far below penalties in neighboring states, but the larger risk is the forfeiture: a missed date can turn a fair $140 deduction into a full refund.
Commercial premises are covered separately in section 43-32-24.1, with longer periods of sixty and ninety days. The residential rules above do not apply to them.
A simple move-out routine
- Ask for a forwarding address in writing the day keys come back, and note the date you receive it.
- Walk the unit against the move-in record and photograph each item you may charge.
- Decide each deduction by its statutory reason: unpaid rent, other funds due, or restoring the unit.
- Send the written statement and any balance well before day 21, and keep proof of mailing.
- If the tenant asks for an itemized accounting, send it inside 45 days.
DoorKeeping in South Dakota
DoorKeeping can hold the forwarding address date, the move-in record and your photos in one tenant file, and it flags the day-21 date. The statement is a draft until you approve it. Deposits stay in your own bank account. DoorKeeping never holds your money and sends a payment only when you approve it. This is general information, not legal advice. Check the current statute or ask a local attorney before you rely on it.
Sources
Questions
- What is the maximum deposit in South Dakota?
- One month's rent for residential premises, unless the landlord and tenant agree to a larger deposit because special conditions pose a danger to maintenance of the premises.
- How many days does a South Dakota landlord have to return a deposit?
- Twenty-one days after the tenancy ends and the tenant's mailing address or delivery instructions are received, either returning it or sending a written statement of the specific reasons for withholding.
- What is the penalty for violating the South Dakota deposit statute?
- The landlord forfeits the right to withhold any portion, and bad-faith retention or failure to give the statement can bring punitive damages up to $200.