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South Dakota · Security Deposit Form Guide

Free South Dakota Security Deposit Itemization Form

Build a compliant South Dakota itemized deduction statement under S.D. Codified Laws 43-32-24 and 43-32-6.1. When a landlord withholds any part of the deposit, the statute requires a written statement of the specific reason within two weeks of move-out and an itemized accounting within 45 days on the tenant’s request, or the landlord forfeits the withholding and risks punitive damages of up to two hundred dollars for bad-faith retention.

SDCL 43-32-24 Itemized statement Auto-calc refund Free PDF

A South Dakota security deposit itemization form is the line-item accounting a landlord uses to justify every dollar kept from a departing tenant’s deposit. Under S.D. Codified Laws 43-32-24, a landlord who withholds any portion of the deposit must furnish a written statement showing the specific reason for the withholding within two weeks of move-out and receipt of the tenant’s mailing address, and, upon the tenant’s request, must provide an itemized accounting of any deposit withheld within forty-five days after termination. This itemization is that document. It is distinct from, and usually mailed alongside, the South Dakota deposit return letter; our South Dakota security deposit laws guide covers the wider framework, and the tenant screening laws by state hub helps you place tenants who leave the unit clean.

South Dakota deposit forms: Itemization Form Return Letter Deposit Receipt Deposit Laws

Video: a plain-language walkthrough of the South Dakota deposit itemization – the two-week written statement, the 45-day itemized accounting on request, the one-month deposit cap, permissible deductions, the wear-and-tear exclusion, and the up-to-two-hundred-dollar punitive penalty.

Key Takeaways: South Dakota Deposit Itemization

  • Two weeks for the written statement. Section 43-32-24 requires the landlord to return the deposit, or furnish a written statement of the specific reason for each withholding, within two weeks after termination and receipt of the tenant’s mailing address.
  • 45 days to itemize on request. Upon the tenant’s request, the landlord must provide an itemized accounting of any deposit withheld within forty-five days after termination of the tenancy.
  • Deduct only two things. Withholding is limited to unpaid rent or other funds due, and the cost to restore the premises to their move-in condition, ordinary wear and tear excepted.
  • One-month deposit cap. Section 43-32-6.1 caps the deposit at one month’s rent unless the parties agree in writing to more where special conditions pose a danger to the maintenance of the premises.
  • Up-to-two-hundred-dollar punitive penalty. A missing, late, or vague itemization forfeits the right to withhold, and bad-faith retention adds punitive damages of up to two hundred dollars on top of the wrongfully withheld amount.
2 weeksWritten statement of withholding
45 daysItemized accounting on request
1 monthDeposit cap (43-32-6.1)
$200Bad-faith punitive cap

Generate Your South Dakota Deposit Itemization

Complete the form below to build an itemized deduction statement ready to print, sign, and mail with the refund check by certified mail. Enter the original deposit and any interest credited, then list each deduction on its own line with a specific reason, a category, and a dollar amount. The generator adds the deposit to any interest, subtracts the total deductions, and calculates the refund balance owed to the tenant automatically. If the deductions exceed the deposit, it flips to show the additional balance the tenant owes. Every figure you enter flows straight into the PDF itemization, and you can review the running total on screen before you generate.

Each line needs a specific reason and a receipt

A single vague line such as “cleaning” or “repairs” without a specific reason does not satisfy the written-statement duty in Section 43-32-24, and the landlord bears the burden of proving each amount was reasonably necessary. Tie every deduction to what was unpaid or damaged and to a receipt, invoice, or written estimate. A missing, vague, or unsupported itemization can forfeit the entire withholding and expose the landlord to punitive damages of up to two hundred dollars for bad-faith retention.

South Dakota Security Deposit Itemization Builder

1. Parties

2. Tenancy

3. Original Deposit

4. Itemized Deductions

List each deduction with a specific reason, a category, and a dollar amount, limited to unpaid rent or other funds due and the cost to restore the unit to its move-in condition beyond ordinary wear and tear. Keep a receipt, invoice, or written estimate for each line. Leave blank rows empty if not needed.

Original Deposit + Interest:
Total Deductions:
Refund Balance:

5. Refund Decision

6. Statement Details

PDF downloaded. Sign, attach the receipts, and mail with the refund check by certified mail.

How South Dakota’s Itemization Duty Works

South Dakota runs the deposit accounting on a clock that starts with two events, not one. Under S.D. Codified Laws 43-32-24, the landlord must, within two weeks after the tenancy terminates and after the landlord receives the tenant’s mailing address or delivery instructions, either return the security deposit, or furnish to the tenant a written statement showing the specific reason for the withholding of the deposit or any portion of it. The itemization is the document that carries those specific reasons in a numbered, dollar-by-dollar form, and it is the difference between a defensible deduction and a forfeited one.

Because the clock keys to the tenant’s mailing address, the practical trap is a landlord who has the move-out date but no address and lets the days slide by. The defensible practice is to capture the mailing address at move-out, ideally on the same form that records the condition of the unit, and to begin building the itemization immediately so the written statement is finished, printed, and in the mail well before the two weeks run. Separately from the two-week written-statement duty, the tenant may request a formal itemized accounting of any deposit withheld, and Section 43-32-24 gives the landlord up to forty-five days after termination of the tenancy to provide that itemization on request.

Two deadlines, one document. The two-week written statement and the forty-five-day itemized accounting are separate obligations under Section 43-32-24, but a single, thorough itemization built inside the two-week window satisfies both. Deliver it with the deposit decision, keep the deductions specific and documented, and a later accounting request is already answered.

What the South Dakota Itemization Statement Does

The itemization is the document that proves the landlord did the accounting the statute requires. Under Section 43-32-24, a landlord who withholds any part of the deposit must furnish a written statement showing the specific reason for the withholding, and must return the balance of the deposit that remains after those lawful deductions. The itemized statement ties each deduction to a specific reason and a dollar amount the landlord can later defend, line by line, in small claims court if the tenant disputes the withholdings.

The document does three things at once. It satisfies the statutory duty to state a specific reason for each withholding in writing within the two-week deadline. It is the exact form of the itemized accounting the landlord must provide within forty-five days after termination if the tenant requests one. And it creates a contemporaneous, numbered record that answers a later challenge to any single line without collapsing the entire withholding. Without a properly delivered itemized statement, even legitimate deductions are exposed, because a landlord who cannot show a timely, specific, line-by-line accounting has a weak position when the tenant claims the full deposit back and asks the court for the punitive penalty on top.

The One-Month Deposit Cap Under 43-32-6.1

South Dakota controls what a landlord may collect at the front end as well as what must be accounted for at the back end. Under S.D. Codified Laws 43-32-6.1, a landlord may not demand or receive a residential security deposit in an amount or value greater than one month’s rent, except that a larger deposit may be agreed upon between the landlord and the tenant where special conditions pose a danger to the maintenance of the premises. The one-month cap is the default and the exception is narrow: it must be a genuine, documented special condition, and the larger amount must be the product of a written agreement between the parties.

The cap interacts with the itemization directly. If a landlord collected an over-cap deposit and then itemizes deductions against it, the tenant can attack both the over-collection and the deductions themselves. The form above includes an optional monthly-rent field so you can sanity-check the deposit against the one-month cap before you build the statement. The cleanest posture is to collect a compliant deposit at move-in, document any special-conditions agreement in writing, and itemize only against what was lawfully collected.

Does South Dakota Require Deposit Interest?

No. Unlike a handful of states that mandate a statutory interest rate on held deposits, S.D. Codified Laws 43-32-24 does not require a South Dakota landlord to pay interest on a residential security deposit. A landlord may choose to credit interest voluntarily, and the itemization builder above includes an optional interest field that adds credited interest to the deposit before the deductions are subtracted, but the state statute does not compel it. What South Dakota does require is a timely return or written statement within two weeks, and an itemized accounting within forty-five days on the tenant’s request.

The Specific-Reason Requirement

South Dakota does not let a landlord withhold silently or vaguely. Section 43-32-24 gives the landlord a choice: return the whole deposit, or furnish a written statement showing the specific reason for the withholding of the deposit or any portion of it, and pay the balance. The specific reason is the gate to any deduction at all, and it must be specific. A statement that lists a bare dollar figure next to the word repairs does not show a specific reason, and a court can treat it as no statement at all, which turns the entire deposit into a wrongful withholding. Tie each amount to what was unpaid or what was damaged, describe the harm concretely, and keep the receipts, invoices, and photographs that back the figure. The itemization form gives every line its own reason field and a category so that the specificity is built into the document rather than added as an afterthought.

The Burden of Proof Sits With the Landlord

Section 43-32-24 limits deductions to amounts reasonably necessary, and the landlord carries the burden of proving that each withheld amount was in fact reasonably necessary. That burden shapes how the itemization should be built. Every line should be supported by a document the landlord can produce: an invoice for completed work, a written estimate for work not yet performed, a ledger entry for unpaid rent, or a receipt for materials. A figure the landlord simply asserts, with nothing behind it, is the figure most likely to be struck by a small claims court, and a single unsupported line can undermine the credibility of the whole statement. Build the itemization so that each amount points to a specific piece of proof, and attach copies of that proof to the mailed statement.

The Bad-Faith Standard and the Two-Hundred-Dollar Penalty

The penalty is what gives the two-week clock and the specific-reason duty their teeth. Under Section 43-32-24, a landlord who fails to comply forfeits the right to withhold any portion of the deposit, and the bad-faith retention of a deposit or any portion of it, including a failure to provide the written statement and itemized accounting the section requires, subjects the landlord to punitive damages not to exceed two hundred dollars. Bad faith is a fact question a court decides, but common triggers are missing the deadline entirely, itemizing with no specific reason, charging obvious wear and tear, inventing or padding deductions, using full replacement cost on a worn item, and refusing to return an undisputed balance. Because the punitive figure is capped at two hundred dollars, the practical exposure for a careless landlord is the forfeiture of the entire withheld amount plus that statutory punitive award. South Dakota law does not add a court-costs multiplier to Section 43-32-24, so the exposure is the forfeited withholding plus up to two hundred dollars, not a doubling or trebling of the deposit.

Permissible Deductions Under 43-32-24

Section 43-32-24 draws the outer boundary of what a South Dakota landlord may itemize. A landlord may withhold only amounts reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord under an agreement, and to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted. Those two categories are the whole universe of lawful deductions. Unpaid rent, unpaid utilities the lease made the tenant’s responsibility, and unpaid late fees the agreement authorized fall under funds due. Cleaning beyond ordinary use, repairs to actual damage, and the prorated cost of replacing an item destroyed beyond its normal wear fall under restoring the premises. A charge that does not fit either category, or that cannot be tied to a reasonable and documented cost, is not a lawful deduction no matter how the landlord labels it on the statement.

Wear and Tear Versus Damage

South Dakota treats normal wear and tear as the gradual deterioration of the unit from ordinary use over time, and Section 43-32-24 expressly excepts it from the cost to restore the premises. Faded paint, minor carpet wear in walking paths, small scuff marks near door handles, loose grout, and minor nail holes from hanging pictures all fall on the wear-and-tear side and may not be itemized. Damage is harm beyond ordinary use: large holes in walls, carpet stains or burns, broken fixtures, pet-urine saturation, smoke damage, missing appliances, or deliberate alterations, and those may be itemized against the deposit. The move-in and move-out condition records and dated photographs are the evidence that separates one from the other, which is why a thorough South Dakota move-in and move-out checklist is the upstream document that makes a defensible itemization possible.

Replacement Cost Versus Depreciated Value

Because Section 43-32-24 measures a deduction by what is reasonably necessary to restore the premises to their commencement condition, a landlord who charges the full replacement price of an item that was already partway through its useful life invites a challenge. A five-year-old carpet with a normal life of eight to ten years that a tenant ruins in year six should generally be charged at its remaining useful value, not at the price of brand-new carpet, because new-for-old on a worn item is not reasonably necessary restoration. The defensible practice on the itemization is to prorate replacement charges for the remaining useful life, note the basis on the line, and keep the invoice or estimate. Charging new-for-old is one of the fastest ways to convert a lawful deduction into a disputed one and to hand the tenant a bad-faith argument.

Citation Reference Table

The provisions a South Dakota itemization relies on live in two sections of Chapter 43-32 of the South Dakota Codified Laws:

  • S.D. Codified Laws 43-32-24 – the two-week deadline to return the deposit or furnish a written statement of the specific reason for withholding, measured from termination and receipt of the tenant’s mailing address.
  • Section 43-32-24 (itemized accounting) – the forty-five-day window, upon the tenant’s request, to provide an itemized accounting of any deposit withheld.
  • Section 43-32-24 (permissible deductions) – withholding limited to unpaid rent or other funds due and the cost to restore the premises to move-in condition, ordinary wear and tear excepted, with the burden of proof on the landlord.
  • Section 43-32-24 (penalty) – forfeiture of the right to withhold on noncompliance, plus punitive damages of up to two hundred dollars for bad-faith retention.
  • S.D. Codified Laws 43-32-6.1 – the one-month deposit cap, with a larger deposit allowed by written agreement where special conditions pose a danger to the maintenance of the premises.

Always read the current statute text before relying on any summary; confirm the text of Sections 43-32-24 and 43-32-6.1 on the South Dakota Legislature site or a primary-source code before you rely on a specific figure in a filing.

How to Build a Defensible South Dakota Itemization, Line by Line

A statement that survives a dispute is built in a predictable order, and the form above tracks it. Work through each step so no lawful deduction is left off and no unlawful one sneaks on:

  • Start with the deposit as collected. Enter the original deposit and any interest the landlord chose to credit. This is the top of the ledger and the number every deduction is measured against.
  • List unpaid funds first. Unpaid rent, unpaid utilities the lease assigned to the tenant, and authorized late fees are the cleanest deductions because they are tied to the ledger and the lease rather than to a condition judgment.
  • Then the restoration items. For each repair or cleaning line, name the specific damage, distinguish it from wear and tear, and attach the invoice or estimate. Prorate replacements for remaining useful life.
  • Total the deductions and net them. The generator subtracts the total deductions from the deposit plus interest and shows the refund balance, or the additional balance owed if the deductions exceed the deposit.
  • Attach the proof. Receipts, invoices, estimates, and dated photographs travel with the statement so the tenant, and later a judge, can see the basis for each line.

A Worked South Dakota Itemization Example

Walking a concrete example through the statute makes the mechanics clear. Suppose a tenant paid a security deposit of one thousand two hundred dollars, the monthly rent was one thousand two hundred dollars, so the deposit sits exactly at the one-month cap under Section 43-32-6.1, and the tenancy ran two years before terminating on the last day of the month. At move-out the tenant returned possession and provided a mailing address the same day, which starts the two-week clock under Section 43-32-24. The landlord’s walk-through, measured against the move-in condition record, turns up three items.

The first is unpaid rent. The tenant left owing four hundred fifty dollars of the final month’s rent, which is a default in the payment of rent and a clean deduction because it is tied to the ledger and the lease rather than to a condition judgment. The landlord lists it as line one, category unpaid rent, four hundred fifty dollars, and attaches the rent ledger. The second is a burned patch in the living-room carpet. The carpet was five years into a normal ten-year life, so the landlord does not charge the full nine hundred dollars a new carpet would cost; instead the landlord charges the remaining useful value, four hundred fifty dollars, notes the proration basis on the line, and attaches the flooring estimate. The third is a set of small nail holes and faded paint in the bedroom, which is ordinary wear and tear expressly excepted by Section 43-32-24, so the landlord does not itemize it at all.

The math then runs cleanly. The deposit of one thousand two hundred dollars, with no interest credited, faces total deductions of nine hundred dollars: four hundred fifty in unpaid rent plus four hundred fifty in prorated carpet restoration. Subtracting nine hundred from one thousand two hundred leaves a refund balance of three hundred dollars owed to the tenant, which the landlord mails with the itemized statement and the two attachments inside the two-week window. Because each deduction states a specific reason, sits inside the two permissible categories, and points to a document, the statement is defensible if the tenant later challenges it, and the landlord has answered any forty-five-day accounting request before it is even made.

Unpaid Rent and Other Funds Due

The first permissible category under Section 43-32-24 is amounts reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord under an agreement. This is the cleaner of the two categories because it turns on the ledger and the lease rather than on a condition judgment, but it still has boundaries. Unpaid rent means rent actually owed under the lease for the period the tenant was obligated to pay, and it does not include speculative future rent for months after the tenant lawfully surrendered the unit unless the lease and South Dakota law support an acceleration or a re-letting shortfall. Other funds due are amounts the written agreement made the tenant responsible for, such as unpaid utilities the lease assigned to the tenant, authorized late fees, or a returned-payment charge the lease provided for.

The discipline on this category is that every funds-due line must trace to a written agreement and a ledger. A late fee the lease never authorized is not a lawful deduction; a utility charge the landlord agreed to cover is not a lawful deduction; and a fee that functions as a penalty untethered to an actual cost or an agreed sum invites a challenge. Build each funds-due line so it names the specific charge, the lease provision that authorizes it, and the ledger entry that proves the unpaid amount, and the deduction will hold up far better than a round-number figure with no paper behind it.

The Tenant’s Path to Dispute a South Dakota Itemization

Understanding how a tenant challenges an itemization helps a landlord build one that survives. A South Dakota tenant who believes a deduction is improper, the statement is vague, or the deposit accounting missed the two-week deadline can demand the itemized accounting the statute guarantees within forty-five days, and, if unsatisfied, can bring a claim in small claims court, which handles low-dollar civil matters in South Dakota without the cost and formality of a full circuit-court action. In that forum the tenant argues that the landlord failed to comply with Section 43-32-24, that the deductions were not reasonably necessary, or that the landlord charged ordinary wear and tear.

Two features of the statute shape the courtroom outcome. First, noncompliance forfeits the right to withhold any portion of the deposit, so a landlord who never sent a written statement, or sent a hopelessly vague one, can lose the entire withholding even if some deductions would have been legitimate had they been documented. Second, the landlord carries the burden of proving that each withheld amount was reasonably necessary, so the receipts, invoices, estimates, ledgers, and dated photographs the landlord kept are not optional niceties; they are the evidence that decides the case. If the court finds bad-faith retention, it can add punitive damages of up to two hundred dollars on top of ordering the wrongfully withheld amount returned. A landlord who itemizes specifically, documents every line, and mails on time takes most of the tenant’s arguments off the table before they are raised.

Proration and the Useful-Life Standard in Practice

Because the statutory measure is what is reasonably necessary to restore the premises to their commencement condition, the useful-life analysis is where many South Dakota itemizations are won or lost. The idea is simple: a tenant should not be charged to give the landlord a better unit than the tenant received. If an item was already partway through its normal life, the tenant owes only the value the tenant’s damage consumed, not the price of a brand-new replacement. Carpet, interior paint, blinds, and many appliances all depreciate, and each has a commonly accepted useful life a landlord can reference.

In practice, take the item’s normal useful life, subtract the years already used, and charge the tenant a share of the replacement cost equal to the remaining fraction, adjusted where the damage is partial rather than total. A blind assembly with a five-year life that a tenant destroys in year four supports roughly one-fifth of the replacement cost, not the whole thing. Note the basis for the proration directly on the itemization line, keep the estimate or invoice that establishes the replacement cost, and the number will read as a considered figure rather than an opportunistic one. The category selector on the form includes a prorated-replacement option precisely so this reasoning is visible on the statement itself.

What to Send With the South Dakota Itemization

A complete deposit-accounting package usually includes:

  • The itemized statement itself – generated above, signed and dated within two weeks of termination and receipt of the mailing address.
  • The refund check – for the calculated balance, if any.
  • The written reason for each deduction – a specific reason and dollar amount for every amount kept, which the generated statement builds for you.
  • The supporting receipts, invoices, and estimates – one for each restoration or cleaning line, and a ledger for any unpaid funds.
  • The move-in and move-out condition records – they establish baseline condition against end-of-tenancy condition.
  • Dated move-out photographs – paired with the condition record to prove damage rather than wear and tear.

Send the package by certified mail with return receipt to the mailing address the tenant provided, retain the mailing receipt, and keep copies of everything for at least six years.

Common South Dakota Landlord Mistakes

The most-litigated South Dakota deposit disputes share a short list of errors:

  • Missing the two-week deadline because the itemization did not start once the mailing address arrived.
  • Assuming the forty-five-day accounting window replaces the two-week written-statement duty; it does not.
  • Itemizing with a vague line that gives no specific reason, such as a bare cleaning or repairs entry.
  • Charging for ordinary wear and tear such as faded paint or minor carpet wear from foot traffic.
  • Charging full replacement cost on a worn item instead of the prorated remaining value.
  • Collecting more than one month’s rent without a written special-conditions agreement under 43-32-6.1.
  • Failing to keep a receipt, invoice, or estimate behind each line and losing the burden of proof.
  • Retaining an undisputed balance and risking punitive damages of up to two hundred dollars for bad faith.

Do

  • Build the itemization within two weeks of termination and the mailing address.
  • Provide the itemized accounting within forty-five days if the tenant requests it.
  • State a specific reason and keep a receipt or estimate for every line.
  • Prorate replacement charges for the remaining useful life of the item.
  • Keep the deposit within one month’s rent unless a written special-conditions agreement supports more.

Avoid

  • Letting the two weeks slide once the mailing address is in hand.
  • Treating the forty-five-day window as the deadline to state the reasons.
  • Listing a bare repairs or cleaning line with no specific reason.
  • Charging normal wear and tear or full new-for-old replacement.
  • Retaining an undisputed balance and risking the two-hundred-dollar penalty.

Local South Dakota Jurisdictions

The state statute is the floor, but a local ordinance can add procedural requirements on top of Sections 43-32-24 and 43-32-6.1. Before you send the final itemization, confirm there is no additional disclosure, notice, or interest requirement in the municipality where the rental sits:

Most South Dakota municipalities defer to the state deposit statutes, but verifying the local code before you mail the statement costs a few minutes and closes off a surprise disclosure argument later.

Tenant Screening as Prevention

The cleanest move-outs come from tenants who were screened thoroughly at the application stage. A verifiable income, a steady payment history, and a clean eviction record are the strongest predictors of a unit returned in good condition, which means a short itemization, a full refund, and no two-hundred-dollar exposure. Screening is the upstream control that keeps the deposit accounting simple. Our overview of how to screen tenants step by step walks through the process, and the broader tenant screening laws by state guide covers the rules that apply when you pull a report.

South Dakota Security Deposit Itemization: FAQ

What is a South Dakota security deposit itemization form?

It is the line-item statement a South Dakota landlord uses to account for every dollar withheld from a departing tenant’s security deposit. Under S.D. Codified Laws 43-32-24, a landlord who keeps any part of the deposit must furnish a written statement showing the specific reason for the withholding, and, upon the tenant’s request, must provide an itemized accounting of any deposit withheld within forty-five days after termination. The itemization carries that specific reason and dollar amount for each deduction, then nets them against the deposit to show the refund due or the balance still owed.

Is the itemization the same as the deposit return letter?

They work together but are different documents. The return letter is the cover communication that delivers the deposit decision and any refund check within the two-week window. The itemization is the accounting that sits behind it, a numbered ledger of each deduction with its specific reason and amount, the subtotals, and the net refund or balance owed. A landlord typically mails the return letter with the itemized statement attached, and the itemization is precisely the document that satisfies the tenant’s request for an itemized accounting within forty-five days under Section 43-32-24.

How long does a South Dakota landlord have to provide the itemized accounting?

Two deadlines run at once. Under Section 43-32-24, within two weeks after the tenancy terminates and the landlord receives the tenant’s mailing address or delivery instructions, the landlord must return the deposit or furnish a written statement of the specific reason for any withholding. Separately, upon the tenant’s request, the landlord must provide an itemized accounting of any deposit withheld within forty-five days after termination. The safe practice is to build the full itemization inside the two-week window so the forty-five-day request is already answered.

What can a South Dakota landlord itemize as a deduction?

Section 43-32-24 limits deductions to amounts reasonably necessary to remedy tenant defaults in the payment of rent or other funds due to the landlord under an agreement, and to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted. Every line must fall into one of those two buckets: unpaid rent or other funds due, or the cost to repair or clean beyond ordinary wear and tear. The landlord bears the burden of proving each amount was reasonably necessary, so each line should tie to an invoice, receipt, or written estimate.

Is there a minimum deduction threshold or receipt rule in South Dakota?

South Dakota does not set a specific dollar threshold below which a landlord may skip the written statement, and Section 43-32-24 does not prescribe a statutory form or a fixed receipt-attachment rule the way some states do. What the statute does require is a specific reason for each withholding and an itemized accounting on request, and it places the burden of proving that a deduction was reasonably necessary on the landlord. The practical consequence is that every deduction should be documented with a receipt, invoice, or written estimate even though the statute does not spell out a numeric threshold, because an undocumented figure is a weak figure in court.

What happens if the itemization is late, vague, or missing?

A landlord who fails to comply with Section 43-32-24, including a failure to provide the written statement and itemized accounting the section requires, forfeits the right to withhold any portion of the deposit. On top of that forfeiture, the bad-faith retention of a deposit or any portion of it subjects the landlord to punitive damages not to exceed two hundred dollars. A missing itemization, a vague one that lists only a bare dollar figure next to the word repairs, or one delivered after the deadlines is the most common way a South Dakota landlord loses an otherwise defensible deduction and triggers the penalty.

Should I use replacement cost or depreciated value on the itemization?

South Dakota’s standard is the amount reasonably necessary to restore the premises to their commencement condition, ordinary wear and tear excepted, so a deduction that charges a tenant the full replacement cost of an item already partway through its useful life can be attacked as unreasonable. The defensible approach for items like carpet, paint, or appliances is to prorate the charge for the remaining useful life rather than bill full replacement, and to keep the invoice or estimate that supports the figure. Charging new-for-old on a worn item is one of the fastest ways to turn a lawful deduction into a disputed one.

How should a South Dakota landlord deliver the itemization?

Section 43-32-24 keys the deadline to receipt of the tenant’s mailing address or delivery instructions, so capture that address at move-out and mail the itemized statement, the written reasons, and any refund check to it. The defensible practice is certified mail with return receipt, which fixes a provable delivery date if the timing is later disputed. Keep a signed copy of the itemization, the supporting receipts and estimates, and the mailing receipt with the move-in and move-out condition records for at least six years.

Does South Dakota require interest on a held security deposit?

No. Section 43-32-24 does not require a South Dakota landlord to pay interest on a residential security deposit, unlike a handful of states that mandate a statutory interest rate. A landlord may voluntarily credit interest, and the itemization form includes an optional interest field so credited interest is added to the deposit before the deductions are subtracted, but South Dakota law does not compel it. The statute’s affirmative duties are the timely written statement, the itemized accounting on request, and the return of the balance.

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About the Author

Published by Tenant Screening Background Check · Editorial Team

Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.

Updated 2026

Legal Disclaimer

This form and guide are for general informational purposes only and are not legal advice. South Dakota security deposit law is detailed; itemizing without a specific reason, an unproven deduction, a missed two-week deadline, or a failure to provide the itemized accounting a tenant requests can forfeit a withholding and expose a landlord to punitive damages of up to two hundred dollars. Review S.D. Codified Laws 43-32-24 and 43-32-6.1, and consult a licensed South Dakota landlord-tenant attorney before withholding any part of a deposit. Reading this page does not create an attorney-client relationship.