South Dakota Landlord-Tenant Laws: 2024 Complete Guide

The foundational legal basis for property rights in the state is established by the South Dakota Constitution, effective since 1889. Building on this framework, South Dakota underwent significant residential landlord-tenant law reforms in July 2024. These changes, primarily driven by Senate Bills 89 and 90 (now codified in SDCL 43-32 and 21-16), streamlined the eviction process and updated timelines for lease terminations.

Key South Dakota Rental Laws (2024 Updates)

1. Security Deposits

South Dakota law dictates specific timelines for the handling of security deposits:

• The Limit: Standard residential deposits are capped at one month's rent, unless a higher amount is justified by "special conditions" (e.g., pets or high-risk features).
• The Deadline: Every lessor must, within 14 days (two weeks) after the termination of the tenancy and receipt of the tenant's mailing address, return the security deposit or furnish a written statement showing the specific reason for withholding (SDCL § 43-32-24).
• Itemized Accounting: Within 45 days after termination, upon request of the lessee, the lessor shall provide an itemized accounting of any deposit withheld.
• Withholding: Deductions are allowed for unpaid rent, damages beyond wear and tear, and cleaning.

2. 2024 Eviction Reforms (SB 89 & SB 90)

The most significant change for South Dakota property managers:

• 3-Day Delinquency Rule: An action for eviction (forcible entry and detainer) is maintainable when a tenant fails to pay rent for three days after it is due. Per 2024 SB 90, a separate 3-day "Notice to Quit" is no longer required prior to filing the Summons and Complaint once this delinquency period has passed.
• Service Rules: If a tenant cannot be found, "substituted service" (posting) is now more efficient, provided specific criteria are met.
• Tenant Response: As amended by SB 90, the time for appearance and pleading is 5 days from the time of service, or 30 days after the publication of service, whichever occurs sooner (SDCL § 21-16-7).

3. Lease Terminations and Rent Increases

• Month-to-Month Termination: As amended by SB 89, a tenancy at will for residential property may be terminated by the landlord giving notice to the tenant to remove from the premises within a period of not less than 15 days (SDCL § 43-8-8).
• Military Exception: Tenants on active military service are entitled to two months' notice for termination of a tenancy at will.
• Rent Increases: Landlords must still provide 30 days' written notice for rent increases (SDCL § 43-32-13).
• Tenant's Right to Terminate: If a tenant receives a rent increase notice, they can choose to terminate the lease by giving notice within 15 days of receiving the increase.

4. Maintenance and Habitability

South Dakota landlords are bound by the implied warranty of habitability (SDCL § 43-32-8). You must keep the unit fit for human habitation and in good repair.

• Repair and Deduct: If a landlord fails to make essential repairs (heat, water) after notice, the tenant may perform the repair and deduct the cost from rent, or terminate the lease entirely (SDCL § 43-32-9).

5. Required Disclosures

• Methamphetamine: If the landlord has actual knowledge that meth was previously manufactured in the unit, they must disclose it in writing (SDCL § 43-32-30).
• Landlord Identity: The name and address of the owner or property manager must be disclosed to the tenant.

Best Practices

1. Update Your Forms: Ensure your "Notice of Rent Increase" and "Termination of Tenancy" forms reflect the new 15-day and 30-day rules.
2. Track the 14-Day Clock: Set an automated reminder in Landager for the 14-day deposit return/statement deadline to avoid potential double-damage penalties.
3. Verify Local Codes: While state law preempts most areas, cities like Sioux Falls have specific building codes regarding smoke detectors and egress.

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