Not every rental situation in South Dakota involves renting out an entire house or apartment. Sometimes, the arrangement is just a spare bedroom and a shared kitchen. But even when you’re only renting out part of your home, you still need a legally compliant room rental agreement in South Dakota.
A South Dakota room rental agreement should outline key details of the tenancy. Putting these important terms in writing helps to prevent misunderstandings and ensure you follow South Dakota landlord-tenant law.
Below, we’ll walk through what South Dakota law requires and how to create a lease agreement correctly.
Room Rental Laws
As mentioned above, room rentals fall under South Dakota landlord-tenant law, which governs key aspects of your South Dakota room rental agreement, including:
- Security deposits
- Rent and fees
- Access and privacy
- Maintenance and habitability
- Lease terms and termination
- Eviction and breaches
Even if a room rental agreement South Dakota landlords use feels informal, it must still comply with all statewide rules.
Different Types of Room Rental Agreements in South Dakota
Before you create your rental agreement, you should first decide which type of tenancy works best for you.
Verbal agreement: While South Dakota law does not prohibit verbal agreements, they are often difficult to enforce and can lead to misunderstandings. We strongly recommend a written agreement.
Fixed-term lease: A fixed-term lease agreement lasts for a defined period, typically 1 year. The benefits of this type of agreement include stability and predictability.
Month-to-month lease: A month-to-month rental agreement, also referred to as a tenancy at will, renews each month until either you or your tenant gives notice to end the arrangement. This option offers flexibility but requires close attention to notice the rules.
Required Landlord Disclosure
South Dakota requires you to include certain disclosures in all residential rental agreements.
Lead-based paint: For any home built before 1978, you must disclose any known information about lead-based paint and its hazards and provide the required EPA pamphlet.
Methamphetamine contamination: If anyone ever manufactured methamphetamine in your home, you must disclose this information to your tenant (S.D. Codified L. § 43-32-30).
Security Deposit Rules
South Dakota law oversees how landlords handle security deposits, from how much you collect to when you return the funds.
Maximum security deposit: Typically, South Dakota security deposits are limited to 1 month’s rent; however, you can negotiate a larger deposit if any conditions pose an exceptional danger to the maintenance of your house (S.D. Codified L. § 43-32-6.1).
Pet deposits: South Dakota landlords may charge a pet deposit. There is no state-imposed limit, but the deposit should be reasonable, and you should clearly outline it in your lease.
Security deposit receipt: You are not legally required to provide your tenant a receipt for their security deposit.
Deduction tracking: You may deduct from your tenant’s deposit to cover unpaid rent or excessive damages. If you withhold funds, you must give your tenant an itemized statement within 45 days of lease termination (S.D. Codified L. § 43-32-24).
Security deposit return: If you do not withhold funds for unpaid rent or repairs, you must return the deposit to your tenant within 2 weeks of lease termination (S.D. Codified L. § 43-32-24).
Rent Payment Rules
By clearly laying out your rent payment rules, you help prevent confusion in a shared housing situation.
Late rent fees: South Dakota does not limit late fees; however, your lease must clearly outline the fee.
Right to withhold rent: If a landlord fails to make a necessary repair to keep the unit safe, the tenant may withhold rent or make the repair themselves and deduct the cost from a future rent payment. If the tenant withholds rent, they must place the full amount (not exceeding 1 month’s rent) in a separate bank account and release the funds once the repair is complete (S.D. Codified L. § 43-32-9).
Grace period: South Dakota does not have a mandatory grace period for late rent payments.
Pet rent: Pet rent is allowed, provided you clearly disclose it in the lease agreement.
Rent Payment Increase Rules
South Dakota law allows landlords to increase the rent as needed, but there are certain rules you must follow.
Rent payment increase frequency: For fixed-term leases, you cannot increase rent during the lease term unless your rental agreement clearly allows it. For month-to-month tenancies, you must give at least 30 days’ written notice before increasing rent (S.D. Codified L. § 43-32-13).
Rent payment increase maximum: There are no statewide limits on how much you can increase rent.
Rent control/stabilization: Rent control and stabilization do not exist in South Dakota.
South Dakota Room Rental Agreement Breaches
If your tenant violates part of their room rental agreement, South Dakota law outlines the steps you should take to get back on track.
Failure to pay: If your tenant misses a rent payment, you may issue a 3-day Notice to Quit and Vacate. Unlike many other states, South Dakota does not require you to allow your tenant time to make the payment (S.D. Codified L. § 21-16-2).
Lease violations: For other lease violations, you may issue an immediate notice to vacate and start the eviction process. South Dakota landlords are not required to allow tenants time to cure the violation (S.D. Codified L. § 21-16-2).
Self-help evictions: In South Dakota, self-help evictions are illegal. You should never attempt to remove a tenant on your own.
Terminating a South Dakota Room Rental Agreement
How you terminate a room rental agreement in South Dakota depends on the type of tenancy in place.
Fixed-term: A fixed-term lease ends on the date specified in the contract. No additional notice is required.
Month-to-month: In South Dakota, either party may terminate a month-to-month room rental agreement by giving at least 30 days’ written notice (S.D. Codified L. § 43-32-13).
Tenant’s right to terminate: Tenants who want to terminate their lease early must meet a legally qualifying condition, such as active-duty military service, domestic violence, tenant death, uninhabitable living conditions, or landlord harassment.
Room abandonment: In South Dakota, tenants who abandon their lease early without a qualifying condition are often financially liable for the remainder of the lease term.
Landlord Access Laws
Even in a shared home, tenant privacy is important.
Advance notice: South Dakota law requires you to give your tenant at least 24 hours’ written notice for routine entry. This notice should state the date and time of entry, as well as the purpose (S.D. Codified L. § 43-32-32).
Immediate access: If there is an emergency, you may enter the room without giving notice (S.D. Codified L. § 43-32-32).
Landlord harassment: South Dakota law protects tenants from landlord harassment. Always give proper notice to avoid any issues.
Lease Agreement Renewal and Termination
State law also applies when terminating a room rental agreement in South Dakota.
Required renewals: South Dakota law does not require landlords to renew a tenant’s room rental agreement upon expiration.
Required notice: Fixed-term leases end on their stated end date; no additional notice is necessary. Month-to-month agreements require 30 days’ written notice by either party to terminate (S.D. Codified L. § 43-32-13).
Month-to-month considerations: If either party does not plan to renew a month-to-month agreement, they must give 30 days’ written notice (S.D. Codified L. § 43-32-13).
Room Rental Agreement South Dakota FAQs
What to include in a South Dakota room rental agreement?
For a room rental agreement in South Dakota, landlords must include important details about the contract, including the rent amount and due date, security deposit terms, lease length, house rules, shared-space use, utilities, maintenance duties, guest and pet policies, and move-out requirements.
How do I legally rent out a room?
If you want to rent out a room in your South Dakota home, the first step is to find a trusted landlord software you can use to create a room rental agreement. Create a written room rental agreement in South Dakota using property management software that provides the required disclosures for you and your tenant to sign.
How to make a South Dakota room rental agreement?
Use property management software to draft your South Dakota room rental agreement. Select the printable PDF for South Dakota, customize it with your own terms and rules, and then have both parties sign the agreement. Be sure to keep a copy for your records, as well.
