South Dakota Security Deposit Law: Deadlines & Penalties

South Dakota landlords must return the security deposit, or give the tenant a written statement of the specific reasons for keeping any of it, within 21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions. Deductions are limited to unpaid rent, other money due under an agreement, and restoring the unit to its move-in condition, ordinary wear and tear excepted.

Beyond that statement of reasons, a tenant can ask for a fuller itemized accounting of any amount withheld, which the landlord must provide within 45 days after the tenancy ends. The 21-day clock depends on the landlord having your mailing address, so this letter provides one in writing.

A landlord who fails to follow these rules forfeits the right to withhold any part of the deposit. Keeping a deposit in bad faith, or failing in bad faith to provide the statement or accounting, can also lead to punitive damages of up to $200. The 21-day deadline comes from a 2026 amendment to the statute.