Maximum deposit, return deadlines, and interest rules under SDCL § 43-32-21
South Dakota does not set a statewide maximum on security deposits — landlords may collect any amount they can justify as reasonable, provided no local ordinance applies. The deposit must be returned within 14 days after the tenancy ends, together with a written, itemized list of any deductions.
| Rule | Requirement | Source |
|---|---|---|
| Maximum deposit | No statewide cap | — |
| Return deadline | 14 days after move-out | SDCL § 43-32-21 |
| Itemized statement required | Yes — for all deductions | SDCL § 43-32-21 |
| Interest required | No | SDCL § 43-32-21 |
| Nonpayment notice period | 3 days pay-or-quit | SDCL § 43-32-21 |
Landlords in South Dakota may lawfully deduct from the security deposit for: unpaid rent, damage to the unit beyond normal wear and tear, required professional cleaning not performed by the tenant, and unreturned keys or access devices. Deductions for ordinary wear and tear — scuff marks, minor carpet wear, faded paint — are generally not permitted under South Dakota law.
Tenants who do not receive their deposit (or an itemized statement) by the deadline may be entitled to penalties — sometimes double or triple the withheld amount — plus attorney fees. Courts take deposit violations seriously; failure to provide an itemized list within the statutory period often forfeits the landlord's right to make any deductions at all.
A high security deposit limit can increase tenant financial barriers at move-in, contributing to housing instability and higher eviction rates. South Dakota's lack of a deposit cap is one factor in our overall landlord risk score for the state. Cities with the highest median rents — and therefore the largest absolute deposit amounts — in South Dakota include:
South Dakota has no statewide cap on security deposits. Landlords may charge any "reasonable" amount, though local ordinances in some cities may impose limits.
Landlords in South Dakota must return the security deposit within 14 days after the tenant vacates, along with an itemized list of any deductions.
No — South Dakota does not require landlords to pay interest on security deposits. (Some municipalities may have stricter rules.)
Landlords in South Dakota may typically deduct for unpaid rent, damage beyond normal wear and tear, and cleaning costs required to restore the unit to its original condition. They must provide an itemized written list of deductions. Deductions for ordinary wear and tear are generally prohibited.
Data sourced from South Dakota published statutes (SDCL § 43-32-21), U.S. Census Bureau American Community Survey 2023 5-Year Estimates. Last updated April 29, 2026. This page is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for your specific situation.
