The South Dakota residential lease agreement (“rental agreement”) is a written contract for the exchange of the temporary use of a residential property for regular, periodic payments (“rent”). Once signed by the landlord and tenant, the document becomes legally binding for both parties.
South Dakota Lease Agreement Disclosures
The following disclosures are required for all residential lease agreements in South Dakota.
Methamphetamine Contamination Disclosure
Applicable to any unit where the landlord is aware of potential contamination.
In South Dakota, disclosure of any knowledge relating to methamphetamine manufacturing in the property to be rented must be disclosed in the rental agreement. If there are two or more housing units in the same property, only the unit where known contamination has occurred must be disclosed.
Methamphetamine contamination can be dangerous to Tenant(s) in high concentrations, presenting health concerns through absorption of the materials in the air.
[ ] Has been found to be contaminated above safe levels and is in the process of decontamination.
[ ] Has been found to be contaminated, but falls within safe levels after tests were conducted.
[ ] Has no suspicion of contamination
Lead-Based Paint Disclosure
Applicable to any rental units built prior to 1978.
It is a federal law in the United States that any home built prior to 1978 must disclose the risks posed by lead-based paints. This law requires landlords in South Dakota to:
- Fill out and attach this lead-based paint disclosure form to the lease agreement.
- Provide the tenant with an Environmental Protection Agency (EPA)-approved pamphlet about the dangers of lead-based paint.
- Provide additional records or reports about the presence or hazards of any known lead-based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.
Optional Disclosures & Addendums (Recommended)
The following lease agreement disclosures and addendums are not required by South Dakota law in residential lease agreements, but either help reduce future conflicts with tenants or reduce legal liability for landlords.
- Landlord Name & Address – to create a line of communication for important notices and demands between tenant and landlord, it is recommended that South Dakota landlords provide contact information within or alongside the lease for themselves or anyone authorized to act on behalf of the property.
- Move-in Checklist – it is recommended to provide an itemized list of damages to the property before move-in to make sure tenants are responsible for any serious damages that occur during the lease term. This can be attached to the lease agreement or signed as a separate document.
- Late and Returned Check Fees – it is recommended that landlords disclose in the lease any late fees or returned (bounced) check fees that they intend to charge. South Dakota does not limit how high these fees can be, but they should be considered reasonable (often no more than 10% of rent) and reflect the actual expenses incurred by the landlord as a result of a late payment. They must also be charged only after the agreed upon due date for rent, dictated in the lease. Returned check fees are limited to $40 per bad check.
- Shared Utilities Arrangements – for rental units with shared utilities, it is recommended to disclose the specifics of how they are shared, and how each party’s bill is calculated, so that tenants have a reasonable expectation of what they owe each month.
- Bed Bug Disclosure – for rental units with a history of infestation, it is recommended to provide information on the protocol for handling a bed bug infestation. This addendum will notify the tenant of their obligation to cooperate with bed bug prevention by promptly reporting any sign of infestation to the landlord.
- Asbestos Disclosure – for rental units built prior to 1981, asbestos was a common building material. This disclosure will notify the tenant to take certain precautions to minimize the chance of disturbing the asbestos fibers (i.e. no sanding, pounding, modifications or repairs, without the landlord’s consent). The disclosure will also notify the tenant of their obligation to immediately notify the landlord if any ceilings begin to deteriorate.
- Mold Disclosure – it is recommended to disclose the current mold status of a property in the lease to protect against future liability of mold damages due to the tenant’s negligence during the lease term.