South Dakota Lease Agreement Requirements: Written, Oral, and Essential Clauses

South Dakota allows both written and oral lease agreements, but imposes specific requirements depending on the lease duration. Understanding these requirements ensures your rental agreements are legally enforceable and protect your interests as a property owner.

Written vs. Oral Leases

The One-Year Rule

Under SDCL §43-32-5, any lease for a period longer than one year is only valid if it is:

• In writing
• Signed by the lessor (landlord) or their authorized agent

An oral agreement for more than one year is unenforceable in South Dakota.

Oral Lease Considerations

While oral leases for one year or less are legally valid:

• They are difficult to enforce — disputes become "he said, she said"
• They provide less protection for both parties
• They default to month-to-month tenancy terms
• They are subject to the same state landlord-tenant laws as written leases

Recommendation: Always use a written lease, even for short-term tenancies.

Essential Lease Clauses While South

Dakota does not mandate specific lease language, the following clauses should be included in every lease agreement:

Required Information

1. Names of all parties — Full legal names of the landlord and all tenants
2. Property address — Complete address of the rental unit
3. Lease term — Start date, end date, and renewal terms
4. Rent amount and due date — Monthly rent, where to pay, acceptable methods
5. Security deposit — Amount, conditions for return, and deduction policies
6. Property manager contact — Names and addresses of authorized managers (required by SDCL §43-32-30)

Recommended Clauses

7. Late fee policy — Amount, when applied, and grace period (if any)
8. Maintenance responsibilities — Who handles specific repairs
9. Pet policy — Whether pets are allowed, any deposits or fees
10. Guest policy — Rules for overnight guests
11. Utilities — Which utilities the tenant is responsible for
12. Entry notice terms — How and when the landlord may enter (default is 24 hours' written notice)
13. Parking — Assigned spaces, guest parking rules
14. Smoking policy — Whether smoking is permitted on the premises
15. Noise and conduct — Quiet hours, nuisance provisions
16. Subletting — Whether subletting or assignment is permitted
17. Renewal and termination — How the lease renews and how either party can terminate

Provisions That Cannot Be Waived

Certain tenant protections under South Dakota law cannot be waived in a lease, even if both parties agree:

Any lease clause that attempts to waive these protections is void and unenforceable.

Prohibited Lease Clauses

The following types of provisions are either prohibited or unenforceable in South Dakota:

• Waiver of habitability — Clauses relieving the landlord of maintenance obligations
• Excessive late fees — Fees that are unreasonable or punitive in nature
• Waiver of tenant's right to repair and deduct — Cannot eliminate this statutory remedy
• Waiver of duty to return security deposit — Cannot override statutory return deadlines
• Confession of judgment — Clauses that allow one party to obtain a judgment without the other party having an opportunity to defend

Lease Renewal and Termination

Fixed-Term Leases

• Automatically end on the specified date
• Either party can choose not to renew
• If the tenant remains after the lease expires without a new agreement, a month-to-month tenancy is typically created

Month-to-Month Tenancies

• Either party can terminate with 15 days' written notice (as of July 1, 2024, per SB 89)
• Rent increases require 30 days' written notice

Best Practices for Landlords

1. Always use a written lease — Even for short-term tenancies
2. Use clear, plain language — Avoid legal jargon that tenants may not understand
3. Include all required disclosures — See our Required DisclosuresIl-preview mhux disponibbli guide
4. Review the lease annually — Update clauses to reflect changes in the law
5. Have each tenant sign individually — Ensure all adult occupants are on the lease
6. Provide a copy — Give the tenant a signed copy of the lease
7. Store securely — Keep the original in a safe, accessible location
8. Consult an attorney — Have a local attorney review your lease template

How Landager Helps

Landager provides lease management tools that help you track lease terms, renewal dates, and key clauses — ensuring your South Dakota rental agreements stay current and compliant.

Back to South Dakota Landlord-Tenant Laws OverviewIl-preview mhux disponibbli.