South Dakota Security Deposit Rules: Caps, Lawful Deductions & Penalties (2026)

How much a landlord can charge, and which deductions are actually legal

At a glance

• Deposit cap: No statutory cap under state law (a landlord may charge whatever amount the lease specifies).
• Return deadline: 21 days
• Who must justify a deduction: the landlord
• Penalty for unlawful withholding: no statutory multiplier

Who this covers — and who it does not

This page covers how much a landlord may charge in South Dakota, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.

It does not cover:

• Commercial leases and roommate agreements
• Pet deposits, which are often governed by separate local rules
• Disputes about damage during an ongoing tenancy
• Any state other than South Dakota

How much the landlord may charge in the first place

No statutory cap under state law (a landlord may charge whatever amount the lease specifies).

Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.

Which deductions the statute permits

Claimed deduction	Permitted in South Dakota
Remedy tenant defaults in payment of rent	Permitted, if substantiated
Other funds due to the landlord under an agreement	Permitted, if substantiated
Restore the premises to their condition at the start of the tenancy (ordinary wear and tear excepted)	Permitted, if substantiated

Which deductions the statute does not permit

Claimed deduction	Permitted in South Dakota
Ordinary wear and tear	Not permitted
Any amount without the written statement within 21 days	Not permitted

Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.

Who has to prove what

The landlord may withhold only amounts reasonably necessary to remedy rent defaults, other funds due, or to restore the premises to their condition at the start of the tenancy (ordinary wear and tear excepted), and must provide a written statement within 21 days.

In South Dakota the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. S.D. Codified Laws § 43-32-24 ↗

What you can claim if deductions are unlawful

• No statutory penalty beyond returning the deposit.

  A landlord who fails to comply with this section forfeits all rights to withhold any portion of the deposit. Separately, a BAD FAITH retention (or bad-faith failure to provide the written statement or itemized accounting) subjects the landlord to punitive damages not to exceed $200. There is no statutory multiplier.

  S.D. Codified Laws § 43-32-24 ↗

• A flat penalty of $200.

  A bad-faith retention, or bad-faith failure to provide the written statement or itemized accounting, subjects the landlord to punitive damages not to exceed $200. Bad faith is a separate finding.

  S.D. Codified Laws § 43-32-24 ↗

南达科他的 21 天返还与扣留权丧失

Common landlord defences and how to answer them

Where sources disagree

Some widely circulated summaries of South Dakota deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.

Sources and how to verify them

Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.

Statute	Last verified	Source
S.D. Codified Laws § 43-32-24	2026-10-15	official text ↗

Primary reference: S.D. Codified Laws § 43-32-24 (Return of security deposit). Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.

When you need a lawyer instead of a tool

A self-help letter is the right starting point for a single deposit you can document. Get legal help if:

• You have received an eviction notice — the timeline is now court-driven
• The dispute involves discrimination, unsafe conditions or retaliation
• The amount in dispute exceeds $12,000
• Your landlord has filed anything in court already

Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.

More South Dakota guides

South Dakota Security Deposit Return

→ All South Dakota tenant rights topics

Common questions