South Dakota security deposit rules.
The South Dakota rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: S.D. Codified Laws §§ 43-32-6.1 to -24 · Not legal advice
How much can be charged
Capped at one month’s rent unless special conditions justify more — landlords must document the special-conditions reasoning in the lease.
When it has to come back
21 days after termination and receipt of the tenant’s mailing address or delivery instructions to return the deposit or give a written statement of the specific reason for withholding (SB 4, effective July 1, 2026; previously two weeks). On request, a full itemised accounting within 45 days of termination.
Interest
No interest is required.
Where the money has to sit
No segregation requirement.
What catches operators out
- The two-window timeline (21-day refund, 45-day itemisation on request) is easy to misread.
- Non-compliance forfeits the right to withhold any of the deposit; bad-faith retention adds punitive damages of up to $200.
What this looks like with Standby in South Dakota.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and South Dakota law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in South Dakota. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.