SD · Researched October 7, 2026
South Dakota caps deposits at one month's rent and, since July 2026, gives landlords 21 days after move-out (and receipt of the tenant's address) to return the deposit or explain deductions. Eviction cases move fast, with five days to answer after service. Managing rentals for others requires a property manager or broker license, and staff who lease or collect rent under a licensee need a residential rental agent license.
A property manager is anyone who, for a fee, negotiates rentals or leases, lists rentals, or collects rent for others. Anyone associated with a broker or property manager who negotiates residential leases or collects rent for compensation is a residential rental agent and needs that license.
Owners and their regular employees managing the owner's property; custodians, janitors and building employees who show units and take applications; lodging businesses; attorneys; court-appointed fiduciaries; operators of housing under contract with the South Dakota Housing Development Authority or the United States.
Licensees must keep others' money in an escrow or trust account at a federally insured institution, must not commingle it with their own, and must keep deposit records required by Commission rules.
A larger deposit is allowed only by agreement when special conditions pose a danger to maintaining the premises. Any money that secures the lease counts as a deposit, whatever it is called.
Return the deposit or give a written statement of the specific reasons for withholding. Deductions are limited to unpaid rent, other money due under an agreement, and restoring the unit beyond ordinary wear and tear. On request, give an itemized accounting within 45 days. Failing to comply forfeits the right to withhold, and bad faith adds up to $200 in punitive damages.
The statutes do not require interest on deposits or a separate account for landlords. Licensed property managers must hold others' money in a trust or escrow account (see licensing).
South Dakota's lease statutes do not regulate late fees. State any fee in the lease and keep it reasonable.
No South Dakota statute regulates rental application fees.
The new rent takes effect at the end of the month if the tenant stays. The tenant may end the lease effective the first of the next month by giving notice within 15 days of receiving the change notice.
South Dakota has no rent control law. A state law expressly preempting local rent control was not confirmed.
SDCL 21-16-1 allows a forcible entry and detainer action when a tenant fails to pay rent for three days after it is due. SB 90 (2024) repealed § 21-16-2, which had required a three-day written notice to quit. Check the lease for any notice it promises.
An eviction may be filed when the tenant does or fails to do something that ends the lease under its terms, or commits waste. A landlord may also end a lease when the tenant uses the unit contrary to the agreement or fails to make required repairs. Set notice and cure terms in the lease.
A periodic tenancy renews unless one side gives notice at least as long as the rental period, up to one month. A tenancy at will can be ended with at least 15 days' written notice (reduced in 2024), or two months if the tenant or a spouse or minor child is on active military duty, with exceptions.
Service takes at least one attempt, and if the tenant is not found, a second attempt at least one week later, after which the summons can be posted and mailed. Continuances are limited to 14 days unless the tenant posts a bond for rent and costs. Execution for possession may be served only in daytime.
Property worth more than $500 must be stored, and you have a lien for handling and storage costs.
The notice must give the date, a time window during normal business hours, the purpose, and a way for the tenant to ask to reschedule. The lease can set other methods. Emergencies are excepted.
This duty cannot be waived. If the landlord does not repair after notice, the tenant may repair and deduct, or move out. If repairs cost more than one month's rent, the tenant may put rent in a separate bank account after written notice until repairs are made.
Disclose in writing to tenants and applicants if you know meth was made in the unit. Federal lead paint disclosure applies to pre-1978 housing.
South Dakota law covers race, color, creed, religion, sex, ancestry, disability, familial status and national origin. Leases may not allow eviction for calling police about domestic abuse, sexual violence or stalking.
Landlords now have 21 days, up from two weeks, after the tenancy ends and they receive the tenant's mailing address to return the deposit or give a written statement of reasons. Deductions are limited to unpaid rent and other money due under an agreement, plus damage beyond ordinary wear and tear.
Cut the notice to end a residential tenancy at will from one month to 15 days. Military households still get two months' notice, and commercial tenancies at will keep one month.
Repealed the three-day written notice to quit that had to be served before certain evictions. The tenant's time to appear and answer rose from four to five days after service.
Walk through how these rules fit your renewal, collections and maintenance process with Julian. 20 minutes.
With Julian Calvo, who works with property management companies at LeadSimple.
Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.