South Dakota: Security Deposit Return Deadlines & Deductions
The short answer
A South Dakota landlord has 21 days after BOTH the tenancy ends AND the landlord receives the tenant's mailing address or delivery instructions to return the deposit or send a written statement of why any of it is being withheld — extended from the old 14-day rule by a 2026 amendment already in force. The deposit is capped at one month's rent unless both sides agree to more because special conditions threaten the premises. No interest is required and there's no escrow requirement. Missing the deadline forfeits the landlord's right to withhold anything at all; a bad-faith withholding or bad-faith failure to give the written statement or itemized accounting adds punitive damages capped at a flat $200 — not a multiple of the deposit, despite what some online guides claim.
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This is the general rule in South Dakota. Ezel applies current South Dakota law to your specific facts and answers with citations to the statutes.
| Governing law | S.D. Codified Laws §§ 43-32-6.1 and 43-32-24 |
|---|---|
| Deadline to return the deposit | 21 days after the LATER of the tenancy's termination AND the landlord's receipt of the tenant's mailing address or delivery instructions — both conditions must occur before the clock starts. (Extended from 14 days/"two weeks" to 21 days by SL 2026, ch. 179, § 1, effective July 1, 2026, already in force.) |
| Itemized statement required? | A written statement of the specific reason for any withholding is due within the same 21-day window. Separately, if the tenant asks, the landlord must give a full itemized accounting of anything withheld within 45 days after the tenancy's termination — a longer, distinct deadline from the initial 21-day statement. |
| What can be deducted | Only amounts reasonably necessary to remedy the tenant's default in paying rent or other funds due under the rental agreement, or to restore the premises to their condition at the start of the tenancy — ordinary wear and tear excepted. |
| Maximum deposit amount | One month's rent, except that a larger deposit may be agreed upon between landlord and tenant where special conditions pose a danger to maintaining the premises |
| Interest on the deposit? | No interest required |
| Penalty for a late/bad-faith withholding | Two layers. Failing to comply with the section at all (missing the 21-day deadline or the 45-day itemized-accounting request) forfeits the landlord's entire right to withhold any portion of the deposit. Separately, bad-faith retention of a deposit, or bad-faith failure to give the required written statement or itemized accounting, subjects the landlord to punitive damages capped at a flat $200 — not a multiplier of the deposit. |
| Separate account or bond required? | No separate-account, trust, or bond requirement found in this chapter |
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Requirements one by one
Governing law
South Dakota's deposit rules live in two sections of its lease-of-real-
property chapter: S.D. Codified Laws § 43-32-6.1 (the cap) and § 43-32-24
(the return deadline, deductions, and penalties).
Deadline to return the deposit
The landlord must act "within twenty-one days after the termination of the
tenancy and receipt of the tenant's mailing address or delivery
instructions" (§ 43-32-24) — both the termination AND the address/delivery
information have to be in hand before the 21 days start running. This is a
2026 change: the same section previously gave landlords only 14 days ("two
weeks"), extended to 21 days by a 2026 amendment already in force as of
this page's verification date.
Itemized statement required?
Yes, in two stages. Within the same 21-day window, the landlord must
either return the deposit or "furnish to the tenant a written statement
showing the specific reason for withholding the deposit." Separately,
"within forty-five days after termination of the tenancy, upon request of
the lessee, the lessor must provide the lessee with an itemized accounting
of any deposit withheld" — a longer, distinct deadline that only kicks in
if the tenant asks for the fuller breakdown.
What can be deducted
Only amounts "reasonably necessary to: (1) Remedy tenant defaults in the
payment of... Rent; and... Other funds due to the landlord pursuant to an
agreement; and (2) Restore the premises to their condition at the
commencement of the tenancy, ordinary wear and tear excepted" (§ 43-32-24).
Maximum deposit amount
"A lessor of residential premises may not demand or receive a security
deposit, however denominated, in an amount or value in excess of one
month's rent except that a larger deposit may be agreed upon between the
lessor and the lessee where special conditions pose a danger to
maintenance of the premises" (§ 43-32-6.1). The statute doesn't carve out
a separate, higher figure for furnished units.
Interest on the deposit?
No. Neither § 43-32-6.1 nor § 43-32-24 requires interest on a held deposit.
Penalty for a late/bad-faith withholding
Two separate consequences. "Any lessor of residential premises who fails to
comply with this section forfeits all rights to withhold any portion of the
deposit" — a bare noncompliance trigger, no bad-faith showing needed.
Separately, "the bad faith retention of a deposit... or the bad faith
failure to provide the written statement or itemized accounting... subjects
the lessor to punitive damages not to exceed two hundred dollars" — a flat
statutory ceiling, not a multiplier tied to the deposit's size.
Separate account or bond required?
No. Nothing in this chapter requires the deposit to sit in a separate
account, an interest-bearing account, or a bond.
What trips people up
The 21-day clock needs TWO things to happen, not just one. Both the
tenancy's termination AND the landlord actually receiving your mailing
address or delivery instructions have to occur before the deadline starts
— if you never send an address, the clock arguably never starts either.
The $200 punitive-damages figure is a flat ceiling, not a multiplier.
Several online guides describe the penalty as "double the deposit" — the
statute's actual text caps bad-faith punitive damages at $200 outright, a
separate and much smaller number than doubling a typical month's-rent
deposit.
This is a genuinely new rule as of mid-2026. If your tenancy ended
before July 1, 2026, the older 14-day deadline governed instead of the
current 21 days.
Common questions
How long does my South Dakota landlord have to return my deposit? 21
days after both your tenancy ends and the landlord has your mailing address
or delivery instructions — up from 14 days before a 2026 law change.
Is there a cap on my deposit? One month's rent, unless you and the
landlord agreed to more because of a special risk to the property.
What can I recover if the landlord wrongfully keeps my deposit? You
recover the wrongfully withheld amount (the landlord forfeits any right to
keep it at all for noncompliance), plus up to $200 in punitive damages if
the withholding or the missing paperwork was in bad faith.
Statutes and sources
- S.D. Codified Laws § 43-32-6.1 — the one-month deposit cap and its special-conditions exception.
https://sdlegislature.gov/api/Statutes/43-32-6.1.html (accessed 2026-07-06) - S.D. Codified Laws § 43-32-24 — the 21-day dual-trigger return deadline, permitted deductions, forfeiture, and the $200 punitive-damages cap.
https://sdlegislature.gov/api/Statutes/43-32-24.html (accessed 2026-07-06)
Source links
Every statute quoted above, linked, with the date we checked it.
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