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South Dakota Security Deposit Law, in Plain English

South Dakota's deposit statute changed in 2026, and most guides haven't caught up: the return deadline is now 21 days, not two weeks. The rest is short and firm — a one-month cap, two permitted reasons to withhold, an itemized accounting on request, and total forfeiture for a landlord who doesn't comply. Here's how SDCL §§ 43-32-6.1 and 43-32-24 actually work, for both sides of the lease.

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21 daysDeadline after termination and receipt of the tenant's address to return the deposit or state the specific reason for withholding (2026 amendment; formerly two weeks)
1 month's rentThe cap — unless the parties agree to more for special maintenance risks
2 reasonsThe only permitted withholding: rent and money owed, and restoring move-in condition minus ordinary wear
45 daysThe landlord's deadline to provide an itemized accounting when the tenant asks
100% forfeiture + $200Noncompliance forfeits the right to withhold anything; bad faith adds up to $200 punitive

One month's rent — however the deposit is labeled

Under § 43-32-6.1, any money deposit that secures a residential rental agreement is a security deposit, however denominated — a "cleaning deposit" or "pet deposit" doesn't escape the rule by its name. The lessor may not demand more than one month's rent, with one exception: the parties may agree to a larger deposit where special conditions pose a danger to maintenance of the premises, such as a pet.

No interest is owed and no separate account is required.

After move-out: 21 days from the day the landlord has your address

As amended in 2026, § 43-32-24 requires the lessor, within 21 days after the termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, to return the deposit or furnish a written statement showing the specific reason for withholding any portion. Both triggers must happen; a tenant who leaves no address hasn't started the count.

The lessor may withhold only amounts reasonably necessary for two purposes: to remedy the tenant's defaults in rent and other funds due under an agreement, and to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted. Faded paint and carpet worn by ordinary walking aren't restoration.

Older guides — and many leases — still say "two weeks." The statute says 21 days, and the statute controls.

"Condition at the commencement of the tenancy" is the whole test. Record it on day one.

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Ask, and the numbers must follow within 45 days

The initial written statement gives the reason for withholding. The tenant can then demand the arithmetic: within 45 days after termination, on the lessee's request, the lessor must provide an itemized accounting of any deposit withheld. Make the request in writing; a landlord who ignores it has failed to comply with the section — which, as the next section explains, costs the landlord the entire deposit.

When it goes wrong: total forfeiture, plus up to $200 for bad faith

South Dakota's penalty is forfeiture, not multiplication. Any lessor who fails to comply with § 43-32-24 forfeits all rights to withhold any portion of the deposit — a late statement, a missing accounting, or an unlawful deduction each returns the whole deposit to the tenant regardless of actual damage.

On top of that, bad-faith retention of any portion — or a bad-faith failure to provide the written statement or the itemized accounting — subjects the lessor to punitive damages of up to $200. The statute adds no attorney's fees, so the practical route is small claims.

Disputes go to small claims in magistrate court, which hears claims up to $12,000 — informal and inexpensive. The winning file: the lease, the written mailing-address notice, the 21-day statement or the silence where one should have been, the accounting request and any response, and dated room-by-room photos from both ends of the tenancy.

Frequently asked questions

How long does a landlord have to return a security deposit in South Dakota?

21 days after the tenancy ends and the landlord has your mailing address or delivery instructions — both. Within that window the landlord must return the deposit or give you a written statement of the specific reason for withholding any part of it. This changed in 2026; older guides still say two weeks. Send your address in writing on move-out day so the clock starts.

How much can a landlord charge for a security deposit in South Dakota?

One month's rent, whatever the deposit is called — with one exception: you and the landlord can agree to more if special conditions pose a danger to maintenance of the premises (a pet, for instance). There's no interest requirement and no rule on where the money is kept.

What can a landlord deduct from a deposit in South Dakota?

Only amounts reasonably necessary for two things: unpaid rent and other money due under your agreement, and restoring the unit to its condition at the start of the tenancy — ordinary wear and tear excepted. Faded paint and normally worn carpet aren't restoration.

Can I get an itemized accounting of what was deducted?

Yes. Ask for it, and the landlord must provide an itemized accounting of any deposit withheld within 45 days after the tenancy ends. The initial statement tells you why; the accounting tells you how much for each item. Make the request in writing.

What happens if the landlord misses the deadline or skips the statement?

A landlord who fails to comply with § 43-32-24 forfeits all rights to withhold any portion of the deposit — the whole amount comes back regardless of damage. Bad-faith retention, or a bad-faith failure to provide the statement or the accounting, adds punitive damages of up to $200.

Does my deposit earn interest in South Dakota?

No. South Dakota requires neither interest nor a separate account; the deposit's protection is the 21-day rule and the forfeiture behind it.

Does South Dakota require a move-in inspection or photos?

No. The statute has no checklist, walkthrough, or photo requirement. That leaves 'condition at the commencement of the tenancy' entirely to the evidence — and in a dispute, the side with dated room-by-room documentation from move-in usually wins.

Where do deposit disputes go in South Dakota?

Small claims in magistrate court, for claims up to $12,000 — informal and inexpensive. Bring the lease, your written mailing-address notice, the 21-day statement or proof none arrived, your accounting request, and dated move-in and move-out photos.

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