South Dakota Security Deposit Collections & Holdings

South Dakota Security Deposit Collections & Holdings

Last Updated: April 4, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit Usually 1 Month’s Rent
Receipt Requirement None
Inventory Requirement None
Interest Requirement None

To learn about laws on security deposit returns in South Dakota, click here.

Maximum Security Deposit Allowed in South Dakota

South Dakota law limits the maximum security deposit to one month’s rent. However, a landlord can exceed the limit with the tenant’s consent if special conditions pose a risk to the property.

Can Landlords Charge an Additional Pet Deposit in South Dakota?

In South Dakota, landlords can charge an additional pet deposit, except for service dogs and emotional support animals.

How Much Rent Can a Landlord Collect Upfront in South Dakota?

There is no limit on the amount of rent that can be collected upfront in South Dakota. Prepaid rent is not considered part of the security deposit.

Security Deposit Collections in South Dakota

While other states have additional requirements for landlords that collect a security deposit, such as providing certain documentation of the condition of the unit at move-in, South Dakota does not.

Do Landlords Have to Provide a Receipt for the Security Deposit in South Dakota?

Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in South Dakota.

What Obligations Do Landlords Have to Establish the Condition at Move-in in South Dakota?

South Dakota law does not have specific obligations before a tenancy. While other states like Washington have pre-tenancy obligations like a written inventory of damages, South Dakota does not.

Landlords are always required to ensure their property is habitable and compliant with state and local housing codes.

Security Deposit Holdings in South Dakota

South Dakota law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but South Dakota does not.

Are Tenants Entitled to Interest on Their Security Deposit in South Dakota?

South Dakota law does not require landlords to provide interest on held security deposits.

How Are Security Deposits Accounted for in South Dakota?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in South Dakota?

South Dakota law does not regulate the handling of a security deposit when a property is sold. However, the landlord in possession of the security deposit must handle it according to the applicable rules.