Security Deposit Demand Letter — South Dakota

SOUTH DAKOTA SECURITY DEPOSIT DEMAND LETTER

SENT BY: ☐ Certified mail ☐ First-class mail ☐ Email ☐ Hand delivery ☐ Other: [________________]

Date: [__/__/____]

To:

[LANDLORD / PROPERTY MANAGER]

[ADDRESS]

From:

[TENANT / COUNSEL]

[ADDRESS]

Re: Security deposit for [RENTAL ADDRESS]

Dear [LANDLORD / PROPERTY MANAGER]:

This letter demands compliance with SDCL §§ 43-32-6.1 and 43-32-24 concerning the residential security deposit identified below.

1. Tenancy and Deposit Record

2. Deposit-Cap Issue

Under SDCL § 43-32-6.1, a residential lessor may not demand or receive a security deposit exceeding one month's rent unless the lessor and lessee agree to a larger deposit because special conditions pose a danger to maintenance of the premises.

☐ The deposit did not exceed one month's rent.

☐ The deposit exceeded one month's rent, and no qualifying special condition or mutual agreement has been identified.

☐ The claimed special condition and agreement are: [________________________________].

Amount demanded as excess deposit: $[________]

3. Return or Written Reason for Withholding

Under SDCL § 43-32-24, within 21 days after both termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, the lessor must either:

• return the security deposit; or
• furnish a written statement showing the specific reason for withholding all or part of the deposit.

Select the facts that apply:

☐ More than 21 days elapsed after the triggering events, and no deposit was returned.

☐ More than 21 days elapsed after the triggering events, and no written statement giving a specific reason for withholding was furnished.

☐ A partial deposit of $[________] was returned on [__/__/____].

☐ A withholding statement was furnished on [__/__/____]; copy attached.

4. Itemized Accounting

Upon the tenant's request, § 43-32-24 requires an itemized accounting of any amount withheld within 45 days after termination of the tenancy.

☐ Tenant requested an itemized accounting on [__/__/____].

☐ The 45-day period expired on [__/__/____] without an itemized accounting.

☐ The accounting received on [__/__/____] is disputed as follows: [________________________________].

This letter also constitutes a request for the itemized accounting required by § 43-32-24 if a valid request has not already been made.

5. Permitted Withholding

Section 43-32-24 permits withholding only amounts reasonably necessary to:

• remedy tenant defaults in paying rent;
• remedy tenant defaults in paying other funds due to the landlord under the agreement; or
• restore the premises to their condition at the beginning of the tenancy, ordinary wear and tear excepted.

Tenant disputes deductions for ordinary wear and tear and any amount not reasonably necessary for one of the statutory purposes.

6. Statutory Consequences

A residential lessor who fails to comply with § 43-32-24 forfeits all rights to withhold any portion of the deposit.

Bad-faith retention of the deposit, or bad-faith failure to provide the required written statement or itemized accounting, may subject the lessor to punitive damages not exceeding $200. Section 43-32-24 does not state a two-times multiplier or an attorney-fee award.

7. Amount Demanded

8. Demand and Response

Please, within [____] calendar days after receipt of this letter:

1. pay $[________] by [PAYMENT METHOD] to [PAYEE / ADDRESS];
2. provide the written, itemized accounting and supporting records identified above; and
3. state in writing any factual or legal basis for continued withholding.

The response period in this paragraph is a demand deadline chosen by the sender, not a statutory cure period.

If this matter is not resolved, Tenant reserves the right to pursue available relief in the proper forum. This letter does not state that attorney's fees, court costs, a multiplier, or any remedy beyond current law is automatic.

Sincerely,

[NAME]

[TITLE / COUNSEL, IF APPLICABLE]

[PHONE] | [EMAIL]

Attachments

☐ Lease

☐ Deposit payment proof

☐ Termination / move-out notice

☐ Proof of mailing address or delivery instructions

☐ Move-in and move-out photographs

☐ Inspection record

☐ Landlord's withholding statement

☐ Tenant's prior accounting request

☐ Other: [________________________________]

Sources and References

• SDCL § 43-32-6.1
• SDCL § 43-32-24
• 2026 Senate Bill 4 / Chapter 179 (changed the initial return-or-statement period from two weeks to 21 days)