SECURITY DEPOSIT DEMAND LETTER

STATE OF SOUTH DAKOTA

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with South Dakota law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages.

I. SOUTH DAKOTA LEGAL FRAMEWORK

A. Governing Law

Security deposits in South Dakota are governed by S.D. Codified Laws Section 43-32-6.1 and Section 43-32-24.

B. Security Deposit Limits

Under SDCL Section 43-32-6.1, a landlord generally may not demand or receive a security deposit in excess of one month's rent. However, a landlord may charge a higher deposit if special conditions of the tenancy pose a danger to maintenance of the premises.

C. Return Deadline

Pursuant to SDCL Section 43-32-24:
- Two weeks after termination of tenancy and receipt of tenant's forwarding address, OR
- Forty-five (45) days if the landlord provides written notice of damage claim within the two-week period

The deposit must be returned with an itemized statement of any deductions.

D. Separate Account Requirement

South Dakota law does not require landlords to hold security deposits in a separate account or pay interest on the deposit.

E. Permissible Deductions

Under SDCL Section 43-32-24, a landlord may retain from the security deposit only amounts necessary for:
- Unpaid rent
- Repair of damages caused by tenant (beyond normal wear and tear)
- Cleaning to restore to original condition

F. Prohibited Deductions

The landlord may NOT deduct for:
- Normal wear and tear
- Pre-existing conditions
- Conditions resulting from landlord's failure to maintain premises

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

III. LANDLORD'S VIOLATIONS

You have violated South Dakota law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory two-week period required under SDCL Section 43-32-24.

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.

[ ] Excessive Security Deposit: You collected a security deposit exceeding one month's rent without justification in violation of SDCL Section 43-32-6.1.

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]

[ ] Failure to Provide Damage Notice: You failed to provide written notice of claimed damages within two weeks, forfeiting the right to the 45-day extension.

IV. NORMAL WEAR AND TEAR

South Dakota law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.

The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]

V. DAMAGES AND REMEDIES

A. Return of Security Deposit

B. Legal Remedies

Under South Dakota law, if a landlord wrongfully withholds a security deposit:
- The tenant may recover the deposit amount wrongfully withheld
- The tenant may recover actual damages

C. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in South Dakota Small Claims Court (for claims up to $12,000) or Circuit Court for return of the deposit, damages, and costs.

2. Report Violations: Report your conduct to:
   - South Dakota Attorney General - Consumer Protection Division
   - Local Housing Authority
   - Better Business Bureau

3. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

IX. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[SOUTH DAKOTA BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

SOUTH DAKOTA SECURITY DEPOSIT QUICK REFERENCE

SOUTH DAKOTA-SPECIFIC PRACTICE NOTES

[ ] Two-Week Default: The standard return deadline is two weeks - one of the shortest in the nation. Landlord must act quickly or provide damage notice.

[ ] 45-Day Extension: Landlord may extend deadline to 45 days if they provide written notice of damage claim within two weeks.

[ ] Forwarding Address: The deadline runs from receipt of tenant's forwarding address. Document when this was provided.

[ ] Special Conditions Exception: Landlord may charge more than one month's rent only if special conditions pose danger to property.

[ ] Small Claims Court: For claims up to $12,000, file in South Dakota Small Claims Court.

[ ] No Statutory Multiplier: South Dakota does not provide for double or treble damages for security deposit violations.

[ ] No Attorney Fee Provision: The statute does not specifically provide for attorney's fees; consider lease provisions.

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed South Dakota attorney before use.