South Dakota · Security Deposit Form Guide

Free South Dakota Security Deposit Return Letter

Generate a compliant South Dakota return letter under S.D. Codified Laws 43-32-24 and 43-32-6.1. Once the tenant gives a mailing address, a landlord must return the deposit or deliver a written statement of the reasons for withholding within two weeks of move-out, provide an itemized accounting within 45 days on request, or risk punitive damages of up to two hundred dollars for bad-faith retention.

SDCL 43-32-24 Two-week return Auto-calc refund Free PDF

A South Dakota security deposit return letter is the written accounting a landlord delivers with the deposit refund, or with the explanation of what was withheld, at the end of a tenancy. Under S.D. Codified Laws 43-32-24, within two weeks after the tenancy terminates and the landlord receives the tenant’s mailing address, the landlord must either return the deposit, or furnish a written statement of the specific reason for withholding any portion of it. If the tenant later requests an itemized accounting, the landlord must provide it within forty-five days after termination. 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 in the first place.

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Video: a plain-language walkthrough of the South Dakota deposit return letter – the two-week deadline, the 45-day itemized accounting on request, the one-month deposit cap, permissible withholdings, and the up-to-two-hundred-dollar punitive penalty.

Key Takeaways: South Dakota Deposit Return

• Two weeks to return or explain. Section 43-32-24 requires the landlord to return the deposit, or deliver a written statement of the reasons for withholding, within two weeks after the tenancy ends and after receipt of the tenant’s mailing address.
• 45 days to itemize on request. If the tenant asks for an itemized accounting of any deposit withheld, the landlord must provide it within forty-five days after termination of the tenancy.
• 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.
• No charging for wear and tear. Only unpaid rent or other funds due, and the cost to restore the unit to its move-in condition beyond ordinary wear and tear, are deductible.
• Up-to-two-hundred-dollar punitive penalty. Bad-faith retention exposes the landlord to the wrongfully withheld amount plus punitive damages of up to two hundred dollars, and noncompliance forfeits the right to withhold any portion of the deposit.

Generate Your South Dakota Return Letter

Complete the form below to build a return letter ready to print, sign, and send by certified mail. Fill in the deposit math, itemize each withholding with a specific reason, and the generator adds the original deposit to any interest credited, subtracts the itemized withholdings, and calculates the refund balance owed to the tenant automatically. If the withholdings exceed the deposit, it flips to show the additional balance the tenant owes. Every figure you enter flows straight into the PDF letter, and you can review the running total on screen before you generate.

How South Dakota’s Two-Week Deposit Rule Works

South Dakota runs its security deposit return 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, do one of two things: return the deposit, or furnish a written statement showing the specific reason for withholding the deposit or any portion of it. The two-week window is not a target to aim for; it is the outer limit, and blowing past it is the single most common way South Dakota landlords lose the right to keep withholdings they could otherwise have justified.

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 the withholding accounting immediately so that the written statement and any refund are finished, printed, and in the mail well before the two weeks run. Separately from the two-week return-or-explain duty, the tenant may request a formal itemized accounting of any deposit withheld, and 43-32-24 gives the landlord up to forty-five days after termination of the tenancy to provide that itemization.

What the South Dakota Return Letter Does

The return letter 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 withholdings. The letter ties the deposit decision to a written record the landlord can later produce in small claims court if the tenant disputes the withholdings.

The document does three things at once. It satisfies the statutory duty to communicate the deposit decision in writing within the two-week deadline. It lays the groundwork for the itemized accounting the landlord must provide within forty-five days after termination if the tenant requests one. And it creates a contemporaneous record that answers a later challenge to the withholdings. Without a properly delivered written statement, even legitimate withholdings are exposed, because a landlord who cannot show a timely, specific statement 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 returned 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 return letter directly. If a landlord collected an over-cap deposit and then withholds against it, the tenant can attack both the over-collection and the withholding. The cleanest posture is to collect a compliant deposit at move-in, document any special-conditions agreement in writing, and then apply the return machinery of 43-32-24 to whatever 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 return-letter builder above includes an optional interest field for that purpose, 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 Written-Statement Requirement

South Dakota does not let a landlord withhold silently. 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 written statement is the gate to any withholding 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, and keep the receipts and photographs that back the figure.

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

The penalty is what gives the two-week clock its 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, withholding with no written statement, charging obvious wear and tear, inventing or padding withholdings, 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.

Permissible Withholdings Under 43-32-24

Section 43-32-24 draws the outer boundary of what a South Dakota landlord may keep. 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 withholdings, and the landlord carries the burden of proving that a given amount was reasonably necessary. A charge that does not fit either category, or that cannot be tied to a reasonable and documented cost, is not a lawful withholding 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. 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. Only unpaid rent or other funds due, and restoration to the move-in condition beyond ordinary wear and tear, are deductible. 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 withholding possible.

Citation Reference Table

The provisions a South Dakota return letter 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 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 withholdings) – 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.
• 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.

What to Send With the South Dakota Return Letter

A complete deposit-return package usually includes:

• The return letter 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 statement of withholdings – a specific reason and dollar amount for each amount kept, which the generated letter builds for you.
• 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.
• A copy of the lease – for any deposit and restoration provisions it contains.

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 accounting did not start once the mailing address arrived.
• Assuming the forty-five-day accounting window replaces the two-week return-or-explain duty; it does not.
• Withholding without any written statement, or with a vague statement that gives no specific reason.
• Charging for ordinary wear and tear such as faded paint or minor carpet wear from foot traffic.
• Collecting more than one month’s rent without a written special-conditions agreement under 43-32-6.1.
• Retaining an undisputed balance and risking punitive damages of up to two hundred dollars for bad faith.

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 return letter, confirm there is no additional disclosure, notice, or interest requirement in the municipality where the rental sits:

• Sioux Falls – review the Sioux Falls Code of Ordinances.
• Rapid City – review the Rapid City Code of Ordinances.
• Aberdeen – review the Aberdeen Code of Ordinances.
• Brookings – review the Brookings City Code.

Most South Dakota municipalities defer to the state deposit statutes, but verifying the local code before you mail the letter 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 return letter, 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 Return Letter: FAQ

What is a South Dakota security deposit return letter?

It is the written accounting a South Dakota landlord sends to a departing tenant with the deposit refund or the explanation of what was withheld. Under S.D. Codified Laws 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 either return the deposit, or furnish a written statement showing the specific reason for withholding any portion of it. If the tenant requests an itemized accounting, the landlord must provide it within forty-five days after termination.

How many days does a South Dakota landlord have to return the security deposit?

Two weeks. Section 43-32-24 requires the landlord, within two weeks after the tenancy ends and receipt of the tenant’s mailing address or delivery instructions, to return the deposit or furnish a written statement of the specific reason for withholding. Separately, 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.

What happens if a South Dakota landlord misses the two-week deadline?

A landlord who fails to comply with Section 43-32-24 forfeits the right to withhold any portion of the deposit. In addition, the bad-faith retention of a deposit or any portion of it, including a failure to provide the required written statement and itemized accounting, subjects the landlord to punitive damages not to exceed two hundred dollars. Missing the two-week window and withholding with no written statement is the most common way a South Dakota landlord loses the right to a deduction and triggers the punitive penalty.

Does South Dakota require a landlord to pay interest on a security deposit?

No. Section 43-32-24 does not require a landlord to pay interest on a residential security deposit, unlike some states that mandate a statutory interest rate. A landlord may voluntarily credit interest, and the return-letter builder includes an optional interest field for that purpose, but South Dakota law does not compel it. What the statute does require is a timely return or written statement, and an itemized accounting on request.

What can a South Dakota landlord withhold from the security deposit?

Section 43-32-24 limits withholding 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. Ordinary wear and tear is never deductible, and the landlord bears the burden of proving that a withholding was reasonably necessary.

How much can a South Dakota landlord charge as a security deposit?

Under Section 43-32-6.1, a landlord may not demand or receive a residential security deposit greater than one month’s rent, except that a larger deposit may be agreed upon between the landlord and tenant where special conditions pose a danger to the maintenance of the premises. The one-month cap is the default, and the larger-deposit exception must be a genuine special condition documented by a written agreement.

What is ordinary wear and tear in South Dakota?

Ordinary wear and tear is the gradual deterioration that results from the normal use of the unit over the life of the tenancy, and Section 43-32-24 expressly excepts it from what a landlord may charge to restore the premises. Faded paint, minor carpet wear in walking paths, small nail holes, and light scuffing are wear and tear. Large holes, carpet burns or pet-urine saturation, broken fixtures, and filth requiring extraordinary cleaning are damage the landlord may bill against the deposit.

How should a South Dakota landlord deliver the return letter?

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 deposit and any written statement 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 letter and the mailing receipt with the move-in and move-out condition records.

What must a South Dakota deposit return letter include?

At a minimum: the date, the tenant’s name and mailing address, the property address and tenancy dates, the original deposit amount, a written statement listing each withholding with a specific reason and dollar amount, the refund balance, and the landlord’s signature. A single vague line such as cleaning or repairs, with no specific reason, does not satisfy the written-statement duty in 43-32-24 and invites a dispute.

How long should I keep the South Dakota return letter and supporting documents?

Keep the signed return letter, the receipts and invoices, the move-in and move-out condition records and photos, and the mailing receipt for at least six years from the end of the tenancy. South Dakota’s limitations period for a written-contract claim is six years, so a six-year retention window comfortably covers a deposit dispute that lands in small claims court.

Related South Dakota Deposit and Rental Guides

• South Dakota security deposit laws – the full framework behind this letter.
• South Dakota deposit itemization form – the line-item breakdown that backs the letter.
• South Dakota move-in and move-out checklist – the baseline that justifies a withholding.
• South Dakota deposit receipt – the record of the deposit taken at lease signing.
• South Dakota landlord-tenant laws – the wider statutory picture for the state.
• Tenant screening laws by state – screen the tenant before they move in.
• How to screen tenants – the step-by-step screening process.

Screen South Dakota Tenants Before You Hand Over Keys

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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; withholding without a written statement, an unproven withholding, 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.