## Security deposits in South Dakota Most rental disputes end up being about security deposits. South Dakota regulates how much landlords can collect, where they hold it, and when they must return it. ### South Dakota rules - **Maximum amount:** 1 month rent (greater amounts allowed for damage deposits) - **Return deadline after move-out:** 14 days (or 45 days for damage deductions) ## What landlord can deduct Generally allowed: - **Past-due rent** - **Damage beyond ordinary wear and tear** - **Cleaning costs** (if specified in lease + reasonable) - **Lease-violation costs** - **Late fees** (if in lease + reasonable) Generally NOT allowed: - **Normal wear and tear** (carpet wear, paint fading, minor scuffs) - **Pre-existing damage** documented at move-in - **Routine cleaning** in absence of lease provision - **Repairs the landlord should have done as part of normal maintenance** - **Improvements / upgrades** - **Out-of-state tenant pursuit costs** ## Where landlord must hold the deposit Many states require: - **Separate escrow / trust account** (CT, DC, FL, GA, IA, KY, MD, MA, MI, MN, NJ, NH, NY, NC, OK, PA, TN, etc.) - **Interest on deposit** must be paid to tenant in some states (CT, FL, IL, MA, MN, NJ, NY, etc.) - **Notice to tenant** of deposit location in some states ## Move-in / move-out inspections **Best practice (and legal requirement in many states):** - Move-in inspection with detailed condition report - Photos of every room - Both parties sign documenting condition - Move-out inspection in tenant's presence - Tenant gets opportunity to fix issues identified Without a move-in inspection, landlord has hard time proving damage. ## Itemized statement of deductions Most states require: - **Written itemized list** of deductions - **Receipts / estimates** for repairs - **Sent to tenant within statutory deadline** - **Forwarding address** required from tenant Landlord failing to provide itemized statement may forfeit right to deductions entirely (in many states). ## Penalties for landlord violations Common consequences: - **Forfeit any deductions** — return full deposit - **Double / triple damages** in many states - **Statutory penalties** ($100-$500 per violation) - **Attorney's fees** to tenant - **Punitive damages** for bad-faith violations ## Recovering improperly withheld deposits Tenant options: 1. **Demand letter** to landlord with state law citations 2. **Small claims court** — most deposit disputes 3. **State landlord-tenant court** — formal claim 4. **Tenant's-rights organizations** — legal aid 5. **Class action** if landlord systematically withholds ## Documentation that helps tenants - **Move-in inspection** photos / report - **Receipts** for cleaning / repairs done before move-out - **Photos at move-out** - **Lease + addenda** - **Communications with landlord** (saved emails, texts) - **Forwarding address** in writing to landlord - **Witnesses** to condition at move-out ## Wear and tear vs damage **Normal wear and tear (NOT deductible):** - Minor carpet wear paths - Paint fading / minor scuffs - Worn appliance parts - Minor wear on fixtures - Worn flooring in high-traffic areas - Faded curtains / blinds **Damage (deductible):** - Burn marks - Pet stains / odors - Holes in walls - Broken fixtures - Excessive cleaning needed - Carpet stains beyond normal use - Water damage from negligence ## Good landlord practices - Detailed move-in inspection with photos - Clear lease provisions on cleaning - Get tenant's forwarding address at move-out - Detailed itemized accounting - Send certified mail with tracking - Reasonable repair estimates - Don't deduct for wear and tear ## What you should do If you're a tenant in South Dakota with a security deposit dispute: send written demand citing state law, then file in small claims court if not resolved. Most cases are tenant-friendly with good documentation. If you're a landlord: follow procedures carefully — penalties for non-compliance often exceed any legitimate deductions. --- *This guide is general information about South Dakota law as of early 2026 and is not legal advice. Security deposit law is detail-specific. Talk to a licensed South Dakota landlord-tenant attorney for complex disputes.*