A South Dakota residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.
South Dakota Residential Lease Agreement Disclosures
These disclosures are required for some or all residential lease agreements in South Dakota:
| Disclosure | Applicable To |
|---|---|
| Methamphetamine Contamination Disclosure | Units with Potential Contamination |
| Lead-Based Paint Disclosure | All Units Built Before 1978 |
Methamphetamine Contamination Disclosure
Applies to any South Dakota rental where the landlord is aware of potential methamphetamine contamination.
South Dakota landlords must disclose any knowledge of methamphetamine contamination on the rental property. This disclosure must be in the rental agreement. If there are two or more housing units on the same property, only units with known contamination require a disclosure.
This is an example of a contamination disclosure clause:
Methamphetamine contamination can be dangerous to Tenant(s) in high concentrations, presenting health concerns through absorption of the materials in the air.
This property:
[ ] 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
Download: South Dakota Methamphetamine Contamination Disclosure Form (PDF)
Lead-Based Paint Disclosure
Applies to any South Dakota rental units built before 1978.
South Dakota residential leases for property built before 1978 must, by federal law, contain a lead-based paint disclosure. This requires landlords to do the following:
- 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 any additional records or reports about the presence or hazards of lead-based paint in the unit (for multi-unit buildings with common areas, this includes information from building-wide evaluations)
Download: South Dakota Lead-Based Paint Disclosure Form (PDF)
Optional Disclosures and Addenda (Recommended)
The following lease agreement disclosures and addenda are not required by South Dakota law in residential lease agreements, but assist with tenant management and help limit landlord liability.
| Optional Disclosure | Purpose |
|---|---|
| Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can reduce asbestos risk by not disturbing asbestos fibers. |
| Bed Bugs | Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately. |
| Landlord’s Name and Address | Specifies the name and address of the landlord or authorized agent. Guarantees smooth communication and payment of rent in the event of any unusual situations. Typically includes additional contact information for the landlord and authorized agents, such as phone numbers and email addresses. |
| Late/Returned Check Fees | Specifies late fees or returned check fees related to the lease. South Dakota does not regulate late fees. Returned check fees are capped at $60 per check. |
| Medical Marijuana Use | Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas. |
| Mold Disclosure | Informs tenants about actual or suspected mold contamination on the property efforts, plus information about treatments. This helps limit landlord liability. |
| Move-In Checklist | Takes inventory of existing property damage, when the tenant moves into the rental property. This ensures accurate deductions from the security deposit upon move-out. |
| Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable when the lease ends. For South Dakota landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
| Shared Utilities Arrangements | Sets terms for how to divide utility costs up on properties which share a utility meter with other units. This ensures tenants receive fair charges and understand what uses contribute to their bill. |
| Smoking | Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants. |
Consequences of Not Including Mandatory Disclosures
Mandatory disclosures outline important health, safety, and property information for the benefit of both landlord and tenant. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials. Many lease provisions may be unenforceable without legally required disclosures.
Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.
Sources
- 1 S.D. Cod. L. § 43-32-30
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In any hiring of a residential premises, any lessor who has actual knowledge of the existence of any prior manufacturing of methamphetamines on the premises shall disclose that information to any lessee or any person who may become a lessee. If the residential premises consists of two or more housing units, the disclosure requirements provided by this section only apply to the unit where there is knowledge of the existence of any prior manufacturing of methamphetamines.
Source Link - 2 S.D. Cod. L. § 57A-3-421
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If a merchant or place of business conspicuously posts a notice on its premises or if a merchant or place of business regularly extends credit and prints a notice on its customer statements of such size and location as to be conspicuous, stating that a fee will be assessed against returned checks, any person who issues a check or other draft to the merchant or place of business that is not honored for any of the following reasons upon presentment is liable for all reasonable costs and expenses of collection:
(1) The drawer’s account is closed;
(2) The drawer’s account does not have sufficient funds; or
(3) The drawer does not have sufficient credit with the drawee.
The costs and expenses provided for in this section are reasonable if they do not exceed sixty dollars plus any applicable sales tax.
Source Link
