South Dakota Lease Agreement

Understanding South Dakota Lease Agreement Requirements

State Legal Framework

South Dakota landlord tenant law provides the foundation for all residential rental agreements in the state. South Dakota Codified Laws Chapter 43-32 establishes rights and responsibilities for both parties. South Dakota maintains one of the most landlord-friendly legal environments in the nation, with minimal statutory requirements and streamlined eviction procedures. The state does not impose rent control, allowing landlords significant flexibility in setting rental rates and lease terms. The South Dakota rental lease agreement becomes enforceable when both parties sign the document, creating mutual obligations that govern the entire landlord-tenant relationship under South Dakota’s landlord-tenant statutes.

Written Agreement Standards

South Dakota does not legally require written lease agreements for tenancies under one year. However, creating a written residential lease agreement South Dakota landlords can reference provides clear documentation and legal protection. Written agreements prevent disputes by establishing explicit terms both parties acknowledge and accept.

Essential Elements of a South Dakota Lease Agreement

Parties and Property Identification

Complete Party Information Every South Dakota lease agreement template should identify all parties involved in the rental arrangement. Required information includes:

• Full legal names of all landlords or property managers
• Full legal names of all adult tenants
• Complete property address including unit numbers
• Legal property description when applicable

Accurate identification prevents confusion about who holds rights and responsibilities under the agreement.

Lease Term and Duration

Fixed-Term Agreements Fixed-term leases establish specific start and end dates for tenancies. Most South Dakota rental contracts run for 12-month periods, though landlords can create agreements for any duration. Fixed-term leases provide stability for both parties and establish clear expectations about tenancy length.

Month-to-Month Arrangements Month-to-month rental agreements offer flexibility for landlords and tenants who prefer shorter commitments. These arrangements automatically renew each month until either party provides proper termination notice. South Dakota requires one month written notice to terminate month-to-month tenancies, with notice given before the start of the next rental period.

Rent Payment Terms

Payment Obligations South Dakota lease agreements must clearly state rent payment requirements including:

• Monthly rent amount
• Payment due date
• Accepted payment methods
• Where tenants should submit payments
• Grace period provisions (if offered)

South Dakota law does not mandate specific grace periods, so landlords should clearly specify any grace period terms in lease agreements.

Late Fee Provisions South Dakota does not impose statutory caps on late fee amounts, allowing landlords to set penalties for overdue rent according to lease terms. Late fee policies should appear clearly in the rental agreement South Dakota tenants receive. Including specific late fee amounts and assessment dates prevents disputes.

Security Deposit Requirements in South Dakota

Deposit Limits and Handling

Statutory Cap South Dakota limits security deposits to one month’s rent. This is one of the stricter security deposit limits in the nation. However, landlords may collect a higher deposit if special conditions pose a danger to the property, which must be specifically documented.

No Separate Account Requirements South Dakota does not require landlords to hold security deposits in separate escrow accounts or pay interest on deposited funds. Landlords have flexibility in managing deposit funds while maintaining proper records.

Return Procedures

14-Day or 45-Day Timeline South Dakota has a unique two-tier timeline for security deposit returns:

• Two weeks (14 days) if the tenant provides a forwarding address
• 45 days if the tenant does not provide a forwarding address

This timeline applies to both the deposit return and required itemized statements of deductions.

Itemization Requirements If landlords withhold any portion of the deposit, they must provide a written itemized statement of deductions describing:

• Each item of damage claimed
• Actual cost of repairs
• Any unpaid rent or charges

Allowable Deductions Landlords can deduct from security deposits for:

• Unpaid rent
• Damage beyond normal wear and tear
• Costs to restore property to move-in condition
• Cleaning costs
• Unpaid utility charges
• Other charges authorized in the lease agreement

Providing itemized deduction statements with remaining deposit balances prevents tenant disputes.

Wrongful Withholding Penalties

South Dakota landlords who wrongfully withhold security deposits may face legal action from tenants. If a landlord fails to return the deposit or provide proper itemization within the required timeline, the tenant may recover the deposit amount owed. Landlords should document property condition thoroughly and provide timely itemized statements.

Required Disclosures for South Dakota Rental Agreements

Lead-Based Paint Disclosure

Federal law mandates lead-based paint disclosures for all rental properties built before 1978. South Dakota landlords must provide:

• Written disclosure of known lead-based paint presence
• EPA pamphlet “Protect Your Family from Lead in Your Home”
• Ten-day opportunity for lead inspection
• Signed acknowledgment of disclosure receipt

Failure to provide proper lead disclosures exposes landlords to significant federal penalties.

Owner/Agent Identification

South Dakota landlords should disclose:

• Name and address of the property owner
• Name and address of any person authorized to manage the property
• Name and address of person authorized to receive notices and demands

This information should be provided in the lease agreement or separately at the beginning of tenancy.

Mold Disclosure

South Dakota does not mandate specific mold disclosures. However, landlords should consider:

• Disclosing known mold problems as a best practice
• Addressing mold prevention in lease terms
• Responding promptly to tenant mold reports

Bed Bug Disclosure

South Dakota does not require specific bed bug disclosures. Best practices include:

• Disclosing known infestation history
• Establishing reporting procedures in lease terms
• Clarifying treatment responsibilities

Methamphetamine Contamination Disclosure

South Dakota requires landlords to disclose if the property was previously used as a methamphetamine laboratory. Landlords must:

• Disclose known methamphetamine production history
• Provide documentation of any remediation performed
• Ensure property has been properly decontaminated

Radon Disclosure

South Dakota does not mandate radon disclosure but recommends it as a best practice. South Dakota has areas with elevated radon levels.

Landlord and Tenant Rights Under South Dakota Law

Landlord Obligations

Limited Habitability Requirements South Dakota does not have a comprehensive statutory warranty of habitability like many other states. However, landlords still have certain obligations:

• Compliance with applicable building and housing codes
• Maintaining the property in the condition agreed upon in the lease
• Making repairs specified in the lease agreement
• Not interfering with tenant’s quiet enjoyment

Landlords and tenants can negotiate maintenance responsibilities in the lease agreement. South Dakota law allows significant flexibility in allocating repair duties between the parties.

Property Access Rights South Dakota requires landlords to provide at least 24 hours advance notice before entering rental properties, unless otherwise agreed in the lease. Entry must occur at reasonable times for legitimate purposes including:

• Inspections
• Repairs and maintenance
• Showing property to prospective tenants or buyers
• Emergencies (no notice required)

Tenant Responsibilities

Property Care Standards Tenants must maintain rental units according to South Dakota law and lease terms including:

• Keeping the property clean and sanitary
• Using fixtures and appliances properly
• Not deliberately or negligently destroying property
• Not disturbing neighbors’ peaceful enjoyment
• Complying with lease provisions
• Paying rent on time
• Allowing reasonable landlord access

Lease Termination and Eviction Procedures

Voluntary Termination

Notice Requirements South Dakota termination notice requirements depend on lease type:

• Fixed-term leases end automatically on specified dates
• Month-to-month tenancies require one month written notice before the periodic rental date
• Week-to-week tenancies require one week written notice

Including clear termination procedures in lease agreements prevents misunderstandings about proper notice protocols.

Eviction Processes

South Dakota provides streamlined eviction procedures, making it one of the fastest states for removing non-paying tenants.

Nonpayment of Rent South Dakota landlords can begin eviction proceedings when tenants fail to pay rent. The process requires:

• Three-day notice to pay rent or vacate
• Filing forcible entry and detainer action if tenant fails to comply
• Court hearing and judgment
• Writ of possession for physical removal

South Dakota’s three-day notice period is among the shortest in the nation.

Lease Violations Landlords can pursue eviction for material lease violations. South Dakota allows:

• Notice as specified in lease terms
• Court filing after notice period expires
• Court proceedings and judgment

Immediate Eviction South Dakota allows immediate eviction in certain circumstances:

• Illegal drug activity
• Criminal activity threatening health or safety
• Abandonment of property

Retaliatory Eviction Protections

South Dakota provides limited statutory protection against retaliatory evictions. Landlords should still avoid:

• Evicting tenants solely for reporting code violations
• Retaliating against tenants for exercising legal rights

Creating an Effective South Dakota Lease Agreement

Documentation Best Practices

Comprehensive Terms Strong South Dakota lease agreements include provisions addressing:

• Pet policies and deposits (with special condition documentation)
• Guest and occupancy limits
• Maintenance responsibilities (clearly allocated)
• Utility payment assignments
• Parking and storage rules
• Noise and conduct standards
• Renewal and termination procedures
• Entry notice procedures
• Snow removal responsibilities
• Heating fuel responsibilities
• Severe weather provisions

Professional Templates Using a South Dakota lease agreement template ensures contracts include all necessary elements. Given South Dakota’s flexibility in allocating responsibilities between landlords and tenants, comprehensive lease terms become particularly important.

Tenant Screening Integration

Application Procedures Thorough tenant screening before lease signing helps landlords select reliable tenants. Screening should include:

• Credit history review
• Employment and income verification
• Rental history and references
• Background checks where permitted

South Dakota does not prohibit source of income discrimination statewide. Documenting screening criteria and applying standards consistently protects landlords from discrimination claims.

South Dakota-Specific Considerations

Sioux Falls Metro Area

The Sioux Falls metropolitan area dominates South Dakota’s rental market:

• State’s largest city with diverse rental stock
• Growing healthcare and financial services employment
• University of Sioux Falls and Augustana University student markets
• Strong rental demand and population growth
• Diverse neighborhoods and suburban development

Rapid City and Black Hills

The Rapid City area presents unique rental dynamics:

• Gateway to Black Hills tourism
• Ellsworth Air Force Base military tenant market
• South Dakota School of Mines student rentals
• Seasonal tourism employment patterns
• Mount Rushmore and tourism industry workforce

Extreme Winter Weather Provisions

South Dakota’s harsh winters create essential rental considerations:

• Heating system maintenance requirements
• Minimum heating temperature provisions
• Emergency heating failure procedures
• Pipe freezing prevention (critical in SD)
• Snow and ice removal responsibilities
• Heating fuel responsibilities (natural gas, propane, fuel oil)
• Block heater outlet provisions for vehicles
• Garage and indoor parking access
• Extreme cold weather protocols (-20°F and below common)
• Wind chill emergency preparations
• Blizzard safety provisions

Lease agreements must clearly address winter maintenance duties given South Dakota’s extreme cold.

College Town Rentals

South Dakota has college student rental markets:

• South Dakota State University (Brookings)
• University of South Dakota (Vermillion)
• South Dakota School of Mines and Technology (Rapid City)
• University of Sioux Falls
• Augustana University (Sioux Falls)
• Northern State University (Aberdeen)
• Black Hills State University (Spearfish)

Landlords in college towns should consider:

• Academic year lease terms
• Parental guarantor requirements
• Move-in/move-out timing around semesters
• Multiple roommate arrangements
• Summer subletting provisions

Military Tenant Considerations

South Dakota’s military installations require understanding:

• Servicemembers Civil Relief Act (SCRA) protections
• Lease termination rights upon deployment or PCS orders
• Ellsworth Air Force Base (Rapid City) tenant considerations
• South Dakota National Guard activations
• Eviction protections during active duty

Native American Reservation Considerations

South Dakota has significant tribal lands:

• Tribal law may apply on reservation properties
• Jurisdictional considerations
• Tribal housing programs
• Federal regulations may apply
• Pine Ridge, Rosebud, and other reservations

Agricultural and Rural Properties

South Dakota’s agricultural economy affects rural rentals:

• Farm and ranch housing considerations
• Well water and septic system disclosures
• Agricultural property provisions
• Grain storage and outbuilding access
• Remote property access (especially in winter)
• Seasonal worker housing
• Limited rental inventory in rural areas

Tourism and Seasonal Rentals

South Dakota’s tourism industry creates rental opportunities:

• Black Hills summer season demand
• Sturgis Motorcycle Rally housing (annual event)
• Deadwood gaming and tourism
• Seasonal workforce housing
• Short-term rental opportunities

Manufactured Housing

South Dakota has manufactured housing inventory:

• Specific considerations for mobile home communities
• Lot rental agreement distinctions
• Community rules and enforcement
• Title and registration requirements
• Extreme cold weatherization requirements
• Skirting and heat tape considerations

Flood Considerations

Parts of South Dakota experience flooding:

• Missouri River flooding risks
• Spring flood preparations
• Disclosure of flood zone locations recommended
• Flood insurance requirements in certain areas

HOA and Condominium Rentals

Some South Dakota rentals occur within homeowner associations:

• Association approval requirements
• Tenant compliance with community rules
• Rental restrictions and caps
• Application processes and fees
• Common area usage rules

Landlords should verify HOA rental policies before marketing properties.

Energy and Utility Provisions

South Dakota’s climate makes utility provisions critical:

• Heating utility responsibilities (crucial)
• Electric service for heating equipment
• Natural gas vs. propane considerations
• Water and sewer in rural areas
• Utility shutoff concerns during extreme cold

Cannabis Considerations

South Dakota’s cannabis laws are evolving:

• Medical marijuana program enacted
• Recreational cannabis legal status in flux
• Landlords can prohibit smoking in lease agreements
• Growing restrictions may apply
• Federal housing programs maintain prohibitions

Hunting Season Considerations

South Dakota’s hunting culture affects some rentals:

• Pheasant hunting season demand
• Seasonal rental opportunities
• Property access during hunting seasons
• Rural property considerations

Small Town and Rural Market Dynamics

Much of South Dakota is rural:

• Limited rental inventory in small communities
• Employer-driven housing needs
• Agricultural cycle impacts
• Long-distance property management challenges

Wind Energy Industry

South Dakota’s wind energy sector affects some areas:

• Wind farm construction workforce housing
• Temporary worker housing needs
• Rural community impacts

Security Deposit

RULE	TOPIC
Security Deposit Maximum:	Any deposit of money intended to ensure the performance of a residential rental agreement, or any portion of it, is considered a security deposit. A landlord (lessor) may not require or accept a security deposit, under any name, that exceeds the value of one month’s rent. A higher deposit may be agreed upon if special conditions exist that could jeopardize the maintenance of the premises. S.D. Codified Laws § 43-32-6.1
Security Deposit Interest:	No statute.
Separate Security Deposit Bank Account:	No statute.
Non-refundable fees:	No statute.
Pet Deposits and Additional Fees:	No statute.
Deadline for Returning Security Deposit:	Every lessor will return the security deposit to the tenant, or furnish to the tenant, a written statement showing the specific reason for the withholding of the deposit or any portion thereof within two weeks after the termination of the tenancy and receipt of the tenant’s mailing address or delivery instructions. S.D. Codified Laws § 43-32-24
Permitted Uses of the Deposit:	The lessor may withhold from the security deposit only such amounts as are reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement or to restore the premises to their condition at the commencement of the tenancy. This includes ordinary wear and tear excepted. S.D. Codified Laws § 43-32-24
Security Deposit can be Withheld:	The lessor may withhold from the security deposit only such amounts as are reasonably necessary to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement or to restore the premises to their condition at the commencement of the tenancy. This includes ordinary wear and tear excepted. S.D. Codified Laws § 43-32-24
Require Written Description/Itemized List of Damages and Charges:	Within forty-five days after termination of the tenancy, upon request of the lessee, the lessor must provide the lessee with an itemized list of any deposit withheld. S.D. Codified Laws § 43-32-24
Receipt of Security Deposit:	No statute.
Record Keeping of Deposit Withholdings:	No statute.
Failure to Comply:	A lessor of residential premises who fails to comply with this section forfeits the right to withhold any portion of the deposit. If the lessor retains the deposit in bad faith, including failure to provide the required written statement and itemized accounting, they can be liable for punitive damages up to and including $200. S.D. Codified Laws § 43-32-24

Lease, Rent & Fees

TOPIC	RULE
Rent is Due:	Rent is due on a monthly basis at the end of each billing cycle (month). S.D. Codified Laws § 43-32-12
Payment Methods:	There is no requirement for a specific payment method for rent.
Rent Increase Notice:	Lessors must provide lessees with written notice at least 30 days before increasing rent for month-to-month leases. The notice must be given when rent is due. S.D. Codified Laws § 43-32-13
Late Fees:	No statute. However, lessors may add language regarding late fees in the lease.
Application Fees:	No statute. However, any fees must be within reason and non-refundable.
Prepaid Rent:	No statute.
Returned Check Fees:	Returned check fees cannot exceed $40.00. Written notice of the fee must be provided to the lessee. S.D. Codified Laws § 57A-3-422
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.):	The lessee is permitted to withhold rent when specific conditions are met.  S.D. Codified Laws § 43-32-27
Tenant Allowed to Repair and Deduct Rent:	The lessee may make repairs himself and deduct the expense of such repairs from the rent, or otherwise recover it from the lessor; or the lessee may vacate the premises, in which case he shall be discharged from additional charges of rent or performance of other conditions if the lessor fails to repair in a timely manner. S.D. Codified Laws § 43-32-9
Self-Help Evictions:	No statute.
Landlord Allowed to Recover Court and Attorney’s Fees:	No statute.
Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent:	No statute.

Notices and Entry

TOPIC	RULE
Notice to Terminate Tenancy:	Notice is not typically required as the lease simply terminates on the date agreed to by both parties in the lease. S.D. Codified Laws § 43-32-22
Notice to Terminate a Periodic Lease – Month-to-Month:	For a month to month lease, the landlord may, upon giving notice in writing at least thirty (30) days before the expiration of the month, modify the terms of the lease to take effect at the expiration of the month. S.D. Codified Laws § 43-32-13
Notice to Terminate a Periodic Lease – Week-to-week:	One week of notice is required if not otherwise specified in the lease terms. S.D. Codified Laws § 43-32-15
Notice to Terminate Lease due to Sale of Property:	Landlords must give notice that a tenant must be removed from the premises within a period, specified in the notice, of not less than fifteen days. S.D. Codified Laws § 43-8-8
Notice of date/time of Move-Out Inspection:	No statute.
Notice of Termination for Nonpayment:	Landlords have the right to start the eviction process if rent is past due by a minimum of three (3) days. S.D. Codified Laws § 21-16-1
Notice for Lease Violation:	Landlords have the right to terminate a lease before the end of its term if the tenant uses the premises in a manner that violates the terms of the lease agreement. If the tenant fails to make any necessary repairs that they are responsible for, as outlined in the lease, the landlord may also terminate the lease. S.D. Codified Laws § 43-32-18
Required Notice before Entry:	Landlords are required to give notice of at least 24 hours required in writing to the tenant, The reason for entry, the date or dates and time of entry during business hours, and providing the tenant an opportunity to reschedule must be included. S.D. Codified Laws § 43-32-32
Entry Allowed with Notice for Maintenance and Repairs:	Landlords are required to give notice of at least 24 hours required in writing to the tenant, The reason for entry, the date or dates and time of entry during business hours, and providing the tenant an opportunity to reschedule must be included. S.D. Codified Laws § 43-32-32
Emergency Entry Allowed without Notice:	Notice is not required in cases of emergencies. S.D. Codified Laws § 43-32-32
Entry Allowed During Tenant’s Extended Absence:	No statute.
Entry Allowed with Notice for Showing the Property:	Landlords are required to give notice of at least 24 hours required in writing to the tenant, The reason for entry, the date or dates and time of entry during business hours, and providing the tenant an opportunity to reschedule must be included. S.D. Codified Laws § 43-32-32
Notice to Tenants for Pesticide Use:	No statute.
Lockouts Allowed:	Lockouts are not permitted. S.D. Codified Laws § 43-32-6
Utility Shut-offs Allowed:	Landlords are not permitted to shut-off utilities. S.D. Codified Laws § 43-32-6
Electronic Notices Allowed:	no

Disclosures

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Protecting Your South Dakota Rental Investment

A well-drafted South Dakota rental lease agreement forms the foundation of successful property management. Given South Dakota’s extreme winter conditions, limited statutory requirements, and flexibility in allocating responsibilities, comprehensive documentation becomes particularly important. Clear terms addressing heating requirements, winter maintenance, and repair responsibilities protect both landlord and tenant interests.

RocketRent provides South Dakota lease agreement templates designed to meet state requirements and protect landlord investments. Our platform streamlines property management with integrated tools for lease creation, rent collection, and tenant screening. Create your South Dakota rental lease agreement today and manage your properties with confidence.