| 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.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in South Dakota
South Dakota law limits the maximum security deposit to one month’s rent by default. When specialized conditions pose danger to the property’s maintenance, a landlord may exceed this limit.
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 always are 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.
Sources
- 1 S.D. Codified Laws § 43-32-6.1
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Any deposit of money, the function of which is to secure the performance of a residential rental agreement or any part of such an agreement, shall be deemed to be a security deposit. A lessor of residential premises may not demand or receive a security deposit, however denominated, in an amount or value in excess of one month’s rent except that a larger deposit may be agreed upon between the lessor and the lessee where special conditions pose a danger to maintenance of the premises.
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