South Dakota Security Deposit Demand Letter

Introduction

Key Things to Know

1. 1

   A security deposit demand letter is a written demand a South Dakota tenant sends a former landlord to recover a deposit withheld past the state deadline, before taking the landlord to small claims court.

2. 2

   Within 21 days after the tenancy ends and the lessor receives the tenant's mailing address or delivery instructions, the lessor must return the deposit or furnish a written statement showing the specific reason for withholding it (SDCL 43-32-24).

3. 3

   On the tenant's request, the lessor must provide an itemized accounting of any deposit withheld within 45 days after the tenancy ends, which is separate from and later than the 21-day written statement (SDCL 43-32-24).

4. 4

   The lessor may withhold only amounts reasonably necessary to remedy the tenant's defaults in payment of rent and other funds due, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted (SDCL 43-32-24).

5. 5

   A lessor who fails to comply with the statute forfeits all rights to withhold any portion of the deposit (SDCL 43-32-24).

6. 6

   Bad-faith retention of the deposit, or bad-faith failure to provide the written statement or itemized accounting, subjects the lessor to punitive damages not to exceed $200, a fixed statutory cap rather than a multiple of the deposit (SDCL 43-32-24).

7. 7

   A South Dakota lessor may not demand a deposit greater than one month's rent absent special conditions (SDCL 43-32-6.1); if the demand is ignored, a tenant can sue in small claims court for up to $12,000 (SDCL 15-39-45.1).

South Dakota Requirements for Security Deposit Demand Letter

• 21-Day Return or Written Statement

  In South Dakota the lessor must, within 21 days after the tenancy ends and the lessor receives the tenant's mailing address or delivery instructions, return the deposit or furnish a written statement showing the specific reason for withholding it (SDCL 43-32-24). Your demand letter should state that this deadline has passed.

• Itemized Accounting Within 45 Days on Request

  On the tenant's request, a South Dakota lessor must provide an itemized accounting of any deposit withheld within 45 days after the tenancy ends (SDCL 43-32-24). This is separate from and later than the 21-day written statement, so ask for it in your demand letter.

• Permitted Deductions

  A South Dakota lessor may withhold only amounts reasonably necessary to remedy the tenant's defaults in the payment of rent and other funds due, and to restore the premises to their condition at the commencement of the tenancy (SDCL 43-32-24). Charges beyond what is reasonably necessary can be disputed.

• No Deduction for Ordinary Wear and Tear

  Restoration deductions are limited to the premises' condition at the commencement of the tenancy, ordinary wear and tear excepted (SDCL 43-32-24). Charges for the normal aging of the unit are improper and can be disputed in your demand.

• Forfeiture of Withholding Rights for Noncompliance

  Any South Dakota lessor who fails to comply with SDCL 43-32-24 forfeits all rights to withhold any portion of the deposit. This forfeiture rule is your main leverage: a landlord who missed the 21-day duty loses the right to keep any part of the deposit.

• Bad-Faith Punitive Damages Up to $200

  Bad-faith retention of the deposit, or bad-faith failure to provide the written statement or itemized accounting, subjects a South Dakota lessor to punitive damages not to exceed $200 (SDCL 43-32-24). This is a fixed statutory cap, not a multiple of the deposit, so cite it alongside the forfeiture rule.

• Deposit Cap of One Month's Rent

  A South Dakota lessor may not demand or receive a residential security deposit greater than one month's rent, however denominated, absent special conditions that pose a danger to maintenance of the premises (SDCL 43-32-6.1). If you were charged more, note it in your demand.

• Small Claims Limit and Deadline to Sue

  If the demand is ignored, a South Dakota tenant may bring a small claims action for up to $12,000, not including allowable costs or attorney fees (SDCL 15-39-45.1). The deadline to sue on a written lease is six years (SDCL 15-2-13(1)), so filing promptly after the demand is the practical course.