Security Deposit Return Deadlines & Deductions in South Dakota
At a glance
| Governing law | S.D. Codified Laws §§ 43-32-6.1, 43-32-24 |
|---|---|
| Deadline to return the deposit | 21 days after termination and receipt of mailing address or delivery instructions (§ 43-32-24) |
| Itemized statement required? | Specific written withholding reason within 21 days; full itemized accounting within 45 days after termination if requested (§ 43-32-24) |
| What can be deducted | Unpaid rent or agreement amounts; restoration beyond ordinary wear and tear (§ 43-32-24) |
| Maximum deposit amount | One month's rent unless both parties agree to more for special conditions threatening the premises (§ 43-32-6.1) |
| Interest on the deposit? | No interest duty in the residential deposit sections (§§ 43-32-6.1, 43-32-24) |
| Penalty for a late/bad-faith withholding | Forfeiture of withholding for noncompliance; bad faith can add up to $200 punitive damages (§ 43-32-24) |
| Separate account or bond required? | No separate-account or bond duty in the residential deposit sections (§§ 43-32-6.1, 43-32-24) |
Requirements one by one
Return and accounting
Under S.D. Codified Laws § 43-32-24, the landlord must return the deposit or give a written reason for withholding it within 21 days after both the tenancy terminates and the landlord receives the tenant's mailing address or delivery instructions. If the tenant requests a full itemized accounting of money withheld, the landlord must provide it within 45 days after termination. The section's official history identifies SL 2026, ch. 179, § 1 as its latest amendment.
Deductions and cap
Section 43-32-24 permits only amounts reasonably necessary to cure unpaid rent or other amounts due under the agreement, or to restore the premises to their starting condition, excepting ordinary wear and tear. Section 43-32-6.1 caps the deposit at one month's rent unless the parties agree to more where special conditions threaten maintenance of the premises.
Remedies
A landlord who fails to comply with § 43-32-24 forfeits all rights to withhold the deposit. Bad-faith retention or bad-faith failure to give the required statement or itemization can also bring punitive damages of no more than $200. These sections do not prescribe deposit interest, a separate account, or a bond.
What trips people up
The 21-day refund or reason statement and the requested 45-day accounting use different triggers: the first depends on both termination and receipt of address or delivery instructions, while the second runs from termination and requires a request. Giving delivery instructions promptly helps avoid uncertainty about the first clock.
Common questions
May a landlord deduct for ordinary use of the unit? Section 43-32-24 expressly excepts ordinary wear and tear from restoration deductions.
Is the punitive award twice the deposit? No. The statute caps punitive damages for the specified bad-faith conduct at $200; its separate forfeiture rule concerns the landlord's right to withhold.
Statutes and sources
- S.D. Codified Laws § 43-32-6.1 — deposit definition and cap. https://sdlegislature.gov/api/Statutes/43-32-6.1.html (accessed 2026-10-07)
- S.D. Codified Laws § 43-32-24 — return, deductions, accounting and remedies. https://sdlegislature.gov/api/Statutes/43-32-24.html (accessed 2026-10-07)
Source links
Every statute quoted above, linked, with the date we checked it.
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