What’s the deal with security deposit laws in South Dakota?
It’s a wise step to collect a security deposit from your tenants, even if they seem like the ideal renters. Collecting a security deposit in South Dakota gives you some peace of mind that in the event of damages or a tenant who skips out on rent and vacates, you have some funds to cushion that blow.
Apartment damages can become expensive very quickly, as some Sioux Falls landlords found out recently. When a non-tenant took up refuge in one of their properties to hide out from the authorities, the situation escalated quickly. Ultimately, six windows were shattered and the window frames were bent after the SWAT team finally got the man to leave the apartment. The landlords – and the tenants – now frustrated over who will be paying for the damages, are caught in a situation where the police don’t claim responsibility but the broken windows require replacement anyways.
Having a security deposit just adds a layer of protection to your role as landlord. Read on to learn more about the security deposit rules in South Dakota.
Do landlords need to charge tenants a security deposit in South Dakota?
The majority of residential leases in South Dakota do require a security deposit, and it’s a good idea to protect yourself with one.
What are the limits on rental deposits in South Dakota?
- The landlord has the right to charge up to one months’ rent in the form of a security deposit.
- If there are special conditions that pose danger to the premises, the landlord can charge more
For a Sioux Falls apartment rented at $700 per month, the security deposit could be up to $700 (unless special circumstances apply).
Do landlords need to provide a receipt for a security deposit?
No, landlords in South Dakota do not have to provide written proof of receiving the security deposit.
It may be a good idea to do so anyway. Many landlords use the lease as a form of receipt.
Does the money need to be kept in a separate account to allow it to accrue interest?
No, there are not specific requirements for where the security deposit is stored.
What can security deposit money be used for?
- Unpaid rent
- Damage beyond normal wear and tear
- Other lease agreement breaches
What is the deadline to return a security deposit in South Dakota?
The security deposit (minus any costs incurred for cleaning or repairs, if applicable) must be returned to the renter no later than two weeks after the tenant moves out.
Do landlords need to notify renters of security deposit money used to fix damages?
Yes, landlords must provide an itemized statement of the deductions taken from the security deposit within 45 days of the tenant moving out.
Where can I learn more about South Dakota Security Deposit laws?
If you have any questions, or think you may want to learn more about security deposit laws in South Dakota, please consult a lawyer.
- South Dakota Legislature Rental Real Estate Laws
- NOLO South Dakota Security Deposit Laws
- South Dakota Codified Laws on Security Deposits
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