South Dakota Rent Increase Rules: Notice Requirements & Rights

South Dakota is one of the most landlord-friendly states when it comes to rent increases. Rooted in the property rights protections established upon the state's admission to the Union on November 2, 1889, there is no rent control, no cap on increase amounts, and no limit on frequency — giving property owners significant flexibility in setting rental rates.

Key Rules at a Glance

Rent Increases During a Fixed-Term Lease

During a fixed-term lease (e.g., a one-year lease), a landlord cannot increase rent unless the lease agreement explicitly contains a provision allowing mid-term increases.

If the lease has no such provision, the landlord must wait until the lease term expires to raise the rent. At renewal, the landlord may propose any new rent amount.

Rent Increases for Month-to-Month Tenancies

For month-to-month tenancies, landlords must provide at least 30 days' written notice before a rent increase takes effect. The increase takes effect at the expiration of the month (SDCL § 43-32-13).

Tenant's Right to Terminate

If a tenant receives a rent increase notice and does not wish to pay the higher amount, they have the right to terminate the tenancy:

• The tenant must provide the landlord with 15 days' written notice to terminate a month-to-month tenancy if they do not agree to the modified terms (SDCL § 43-32-13, as amended by SB 89, 2024).
• For general termination of a month-to-month tenancy where no term is specified, either party may terminate by giving at least 15 days' written notice before the expiration of the term (SDCL § 43-32-15, as amended by SB 89, 2024).

No Rent Control in South Dakota

South Dakota has no statewide rent control and local municipalities are generally preempted from enacting rent control ordinances. This means:

• Landlords can raise rent by any amount
• There is no maximum percentage increase
• No government approval is needed for increases
• Local municipalities cannot enact their own rent control laws

Prohibited Rent Increase Practices

While South Dakota gives landlords wide latitude on rent increases, the following rules apply:

Retaliatory Increases

South Dakota law does not contain a statutory prohibition against retaliatory rent increases or evictions. Unlike many other states, South Dakota statutes do not provide specific protections or a legal presumption of retaliation if a landlord raises rent after a tenant exercises legal rights or reports code violations.

Discriminatory Increases

Under the Fair Housing Act (federal law) and SDCL § 20-13-20 (state law), it is an unfair or discriminatory practice to raise rent based on a tenant's:

• Race or color
• Creed or religion
• Sex
• Ancestry or national origin
• Familial status (having children)
• Disability

How to Properly Implement a Rent Increase

Step 1: Review the Lease

• Fixed-term lease — Check if the lease allows mid-term increases; if not, wait until renewal
• Month-to-month — Ensure you provide proper written notice

Step 2: Provide Written Notice

• Deliver at least 30 days before the increase takes effect (SDCL § 43-32-13)
• Include the current rent, new rent amount, and effective date
• Use a delivery method that provides proof (certified mail, hand delivery with signature)

Step 3: Document the Reason

While not legally required, documenting the business reason for the increase (rising property taxes, insurance costs, market rates) is a recommended business practice to maintain clear communication and professional tenant relations.

Step 4: Allow Tenant Response Period

If the tenant decides not to accept the rent increase, they must provide the landlord with at least 15 days' written notice to terminate the month-to-month tenancy (SDCL § 43-32-13).

Market Context South Dakota's rental market varies by location:

• Sioux Falls — The largest city, with moderate rental growth driven by population increases
• Rapid City — Tourism and military presence (Ellsworth Air Force Base) influence rental demand
• Rural areas — Generally lower rents with smaller annual increases

Understanding local market conditions helps landlords set competitive yet fair rental rates.

Best Practices for Landlords

1. Research market rates — Set increases in line with local comparables to retain good tenants
2. Give more than minimum notice — 60 days notice, while not required, gives tenants time to plan
3. Communicate clearly — Explain the reason for the increase (even though it's not required)
4. Document everything — Keep copies of all notices and delivery receipts
5. Be consistent — Apply the same standards across all units to avoid discrimination claims
6. Consider incremental increases — Small, regular increases are easier for tenants to absorb than large, infrequent ones

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