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State law · statute quotes

South Dakota security deposit laws for landlords and property managers

The words of South Dakota's security deposit statute on each topic, quoted verbatim with pinpoint citations and links to the official source. No summaries, no interpretation.

Reviewed by Mark Shvaya, licensed California real estate broker (DRE #02243502), who uses ProFlow360 in a rental portfolio Mark manages

Last reviewed

Quoted on this page

  • Deposit limit
  • Returning the deposit
  • Itemized statement
  • Inspections and condition reports
  • Photographs
  • Normal wear and tear
  • Interest
  • Wrongful withholding

SDCL § 43-32-6.1 · SDCL § 43-32-24 · S.D. Sess. Laws 2026, ch. 179 (SB 4)

On this page
  1. Deposit limit
  2. Returning the deposit
  3. Itemized statement
  4. Normal wear and tear
  5. Wrongful withholding
  6. Recent changes
  7. Documenting a tenancy
  8. Nearby states
  9. Sources

What this page covers

South Dakota's residential security deposit provisions quoted here come from SDCL § 43-32-6.1, SDCL § 43-32-24, S.D. Sess. Laws 2026, ch. 179 (SB 4). Below are the statute's own words on 5 topics, each with a pinpoint citation and a link to the official text. This page does not summarize or interpret the law.

What does South Dakota law say about the amount of 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.
SDCL § 43-32-6.1Official source

What does South Dakota law say about returning the deposit?

Every lessor of residential premises shall, within twenty-one days after the termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the security deposit described in § 43-32-6.1 to the tenant or furnish to the tenant a written statement showing the specific reason for withholding the deposit, or any portion of the deposit.
SDCL § 43-32-24Official source

What does South Dakota law say about an itemized statement of deductions?

Within forty-five days after termination of the tenancy, upon request of the lessee, the lessor must provide the lessee with an itemized accounting of any deposit withheld.
SDCL § 43-32-24Official source

How does South Dakota law refer to normal wear and tear?

Restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted.
SDCL § 43-32-24(2)Official source

What does South Dakota law say about wrongful withholding?

Any lessor of residential premises who fails to comply with this section forfeits all rights to withhold any portion of the deposit. The bad faith retention of a deposit, or any portion of a deposit, by a lessor of residential premises, in violation of this section, or the bad faith failure to provide the written statement or itemized accounting, as required by this section, subjects the lessor to punitive damages not to exceed two hundred dollars.
SDCL § 43-32-24Official source

Not quoted on this page

inspections and condition reports, photographs, interest. That does not mean South Dakota law is silent on them; other sections or local rules may apply. Read the full statute.

Has South Dakota's security deposit law changed recently?

Amendment history not confirmed from the official source.

The quotes above were compared with the official source on October 16, 2026. For the amendment history, see the history notes on the official pages linked under Sources.

How does ProFlow360 help you document a South Dakota tenancy?

ProFlow360 records and organizes inspection evidence; it does not tell you what the statute requires or allows. What it records, for any state:

  • Move-in, routine, pre-move-out and move-out inspections with photos timestamped at capture.
  • Each move-out photo beside its move-in match, filed under the tenancy.
  • Itemized lines with your classification, the amount you entered, and the estimate or invoice attached.
  • An issued record that is sealed, shared by a link that expires and can be revoked.

Do this in ProFlow360

Keep the photos, the call and the invoice on the same line

Every deduction line carries the move-in and move-out photos, your classification and its documents, so the record can be followed by someone who was not there.

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Kitchen · counter burn, left of range

Line 2 of 5 · TEN-0418

$180.00
1
MI-21 · Jul 12, 2024
MO-29 · Sep 30, 2026
2
Tenant damageAvery Chen · Oct 2, 2026
3
Amount you entered$180.00 · from estimate
4
Ridgeline estimate.pdfInvoice 2291.pdf
5
Move-inPeriodicMove-outClassifiedIssued

Security deposit statutes in nearby states

Sources

  1. 1.SDCL § 43-32-6.1: Maximum security deposit for residential premises--Larger deposit by mutual agreement.
  2. 2.SDCL § 43-32-24: Return of security deposit after termination of tenancy--Withholding--Itemized accounting--Forfeiture of withholding rights--Punitive damages.
  3. 3.S.D. Sess. Laws 2026, ch. 179 (SB 4): An Act to revise procedures for returning and withholding security deposits for residential premises.

Sources checked October 16, 2026.

Keep reading

Normal wear and tear vs damageHow operators commonly categorize what changed, room by room.Read moreSecurity deposit dispositionWhat an itemized statement should contain, line by line.Read moreMove-in / move-out checklistFree room-by-room checklist with a PDF download.Read more

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