South Dakota Landlord Tenant Laws

Contents

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DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

  • The maximum security deposit allowed in South Dakota is one month's rent.
  • Landlords have 45 days to return deposits in South Dakota with an itemized receipt of deductions.

RENT CONTROL

  • No rent control laws.
  • Landlords must give t least 30 days notice before raising the rent.
  • Rent increases are expected to be reasonable and kept in line with market rates.

NOTICE OF ENTRY LAWS

  • Landlords are required to give at least 24 hours notice before entering an occupied property.
  • Required notice for entry is waived in the case of emergencies.

RE-KEYING LAWS

  • No statute.

RENTAL AGREEMENT

  • South Dakota law mandates that all rental agreements exceeding one year be in writing to be enforceable.
  • It is always recommended to put lease agreements in writing to avoid legal disputes.

LATE FEES & GRACE PERIODS

  • Late fees are allowed in South Dakota.
  • Late fees are expected to be reasonable and must be clearly state in the lease.
  • There is no mandatory grace period.

SMOKING LAWS

  • No statute.

PET LAWS

  • Pet fees and deposits are allowed.

SECTION 1

1) South Dakota Landlord-Tenant Rights and Responsibilities 

South Dakota's landlord-tenant laws, primarily outlined in the South Dakota Residential Landlord-Tenant Code, delineate the rights and responsibilities of both landlords and tenants. 

Below is an overview of the key aspects of landlord-tenant rights and responsibilities in South Dakota.

Tenant Rights and Responsibilities

Tenant Rights

Tenants in South Dakota are entitled to several fundamental rights designed to ensure their safety and well-being within rental properties. Key rights include:

  • Right to Habitability: Tenants have the right to live in a rental unit that meets local and state health and safety codes, ensuring it is safe and suitable for habitation (S.D. Codified Laws Ann. § 43-32-9).
  • Timely Repairs: Tenants can expect necessary repairs to be made within 14 days after providing written notice to the landlord (S.D. Codified Laws Ann. § 43-32-19).
  • Legal Recourse: If landlords fail to uphold the terms of the rental agreement, tenants have the right to take legal action (S.D. Codified Laws Ann. § 43-32-18).

Tenant Responsibilities

Tenants also bear specific responsibilities, including:

Landlord Rights and Responsibilities

Landlord Rights

Landlords in South Dakota are granted several rights that facilitate effective property management:

  • Rent Collection: Landlords have the right to charge and collect rent payments as stipulated in the lease agreement.
  • Security Deposits: They can collect security deposits to cover potential damages or unpaid rent, typically capped at one month's rent unless otherwise specified (S.D. Codified Laws Ann. § 43-32-6).
  • Eviction Procedures: Landlords may pursue eviction if tenants breach their lease agreements, following legal protocols (S.D. Codified Laws Ann. § 43-32-27).

Landlord Responsibilities

Landlords must fulfill specific obligations, including:

  • Providing Habitable Housing: They must ensure that rental units are safe and habitable, maintaining all essential services such as heating, plumbing, and electrical systems (S.D. Codified Laws Ann. § 43-32-8).
  • Timely Repairs: Landlords are required to address repair requests within a reasonable timeframe after receiving notice from tenants (S.D. Codified Laws Ann. § 43-32-19).
  • Respecting Tenant Privacy: Before entering a rental unit for non-emergency reasons, landlords must provide at least 24 hours' written notice (S.D. Codified Laws Ann. § 43-32-6).

Source: Landlord/Tenant - South Dakota Consumer Protection, Landlord-Tenant Rights and Responsibilities | Pennington County.

Required Notices Before Entry

Landlords can enter the property to carry out maintenance or to show the property. However, they must give tenants reasonable notice—no less than 24 hours—before entering the rental property. Notice requirements are waived in the case of an emergency unless there is an emergency situation.  (S.D. Codified Laws Ann. § 43-32-32).

Late Fee for Rent And Grace Periods in South Dakota

While South Dakota does not have a statute that specifies a maximum late fee amount. However, any late fee that a landlord does choose to charge should be reasonable an must be clearly stated in the written lease agreement. 

There is no mandatory grace period for late rent in South Dakota.

SECTION 2

2) South Dakota Rent Increase Laws

In South Dakota, the framework governing rent increases is notably flexible, as there are no statewide rent control laws that limit the amount landlords can increase rents annually. However, local municipalities have the authority to enact their own regulations, although few have opted to do so.

Notice Required to Raise Rent in South Dakota

When it comes to notifying tenants about rent increases, South Dakota law (S.D. Codified Laws Ann. § 43-32-13) mandates specific procedures:

  • For Month-to-Month Tenancies: Landlords must provide tenants with at least 30 days' written notice before implementing a rent increase. This means that if a landlord intends to raise the rent starting on the first day of a month, they must deliver the notice by the last day of the previous month.
  • For Fixed Term Lease Agreements: If a tenant is under a fixed-term lease, rent can only be increased at the end of that lease unless the lease itself specifies otherwise. If no notice period is outlined in the lease, a default of 30 days is generally accepted.

If a landlord fails to provide adequate notice, tenants have the right to refuse payment of the increased amount until proper notification is given. 

Limitations to South Dakota Rent Increase Laws

While landlords in South Dakota enjoy significant freedom in adjusting rental rates, there are essential limitations to consider:

  • Non-Discrimination: Rent increases cannot be based on discriminatory practices against protected classes as defined by federal and state fair housing laws. This includes discrimination based on race, color, religion, sex, familial status, national origin, or disability (S.D. Codified Laws § 20-13-20).
  • Retaliation: Landlords are prohibited from raising rents in retaliation against tenants who exercise their legal rights, such as filing complaints regarding unsafe living conditions. If a tenant believes a rent increase is retaliatory, they may challenge it legally within 180 days of the increase.
  • Reasonableness: Although there is no explicit cap on how much rent can be raised, landlords are encouraged to ensure that increases are reasonable and justifiable based on market conditions and operational costs. For manufactured homes specifically, any increase beyond the average rate of inflation requires justification under the Rent Justification process established by state law.

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SECTION 3

3) South Dakota Rental Application Laws

South Dakota's rental application laws are designed to facilitate a fair and transparent process for both landlords and tenants. Below is a comprehensive overview of key aspects of rental application laws in South Dakota.

South Dakota Tenant Screening Laws: Overview

South Dakota’s tenant screening laws have some key differences compared to neighboring states, making it important for landlords to stay informed and not assume they know everything about the process.

Here are a few key points:

  • No cap on application fees: South Dakota does not impose a limit on how much landlords can charge for a rental application fee.
  • Security deposit limit: Landlords can charge up to one month's rent as a security deposit.
  • Refund policies: Application fees are non-refundable, while security deposits must be refunded under appropriate conditions.

Landlords should be cautious and well-informed when collecting fees to avoid potential legal issues.

Maximum Rental Application Fee Limit In South Dakota

In South Dakota, landlords can charge an application fee without any statutory limit. This fee is typically non-refundable, which means that applicants will not get this money back regardless of whether they are approved or denied for the rental property. 

While there is no maximum amount set by law, it is advisable for landlords to charge a fee that reflects the actual costs associated with processing the application, with average fees ranging from $10 to $25.

Fair Housing Laws in South Dakota

While South Dakota does not have specific state statutes addressing housing discrimination, it is bound by the federal Fair Housing Act (FHA). This means landlords cannot deny housing based on race, color, religion, sex, national origin, familial status, or disability. Additionally, discrimination based on criminal history or nationality is prohibited.

Disclosure Requirements in South Dakota

Landlords must provide clear information regarding their screening criteria during the application process. This includes any factors that could lead to an application being denied. Applicants should acknowledge this information by signing the application form.

Consent for Credit Checks

Under the Federal Credit Reporting Act (FCRA), landlords must obtain written consent from potential tenants before conducting credit checks. This consent should be clearly documented in the rental application.

Essential Components of a Rental Application

A thorough rental application in South Dakota should include:

  • Personal Information: Full name, contact details, and identification.
  • Rental History: Previous addresses and references from prior landlords.
  • Employment Details: Current job information and employment status.
  • Income Verification: Documentation proving financial stability.
  • Credit History Consent: Written permission for credit checks.
  • Personal References: Contacts who can vouch for the applicant’s character.
  • Background Check Consent: Acknowledgment for conducting background checks.

Important Disclosures

Before signing a lease, landlords are required to disclose certain information to tenants:

  • The condition of the property and any known hazards.
  • Policies regarding shared utilities and security deposits.
  • Any applicable rent control regulations.
  • Smoking policies within the property.

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SECTION 4

4) South Dakota Security Deposit Laws

South Dakota's security deposit laws are structured to provide a balanced framework that safeguards the interests of both tenants and landlords. These regulations outline the permissible amounts for security deposits, the conditions under which deductions can be made, and the obligations regarding the return of these deposits. 

Maximum Security Deposit Laws In South Dakota?

According to South Dakota Codified Law § 43-32-6.1, the maximum security deposit amount a landlord in South Dakota can charge is one month's rent. However, a larger deposit may be negotiated between the landlord and tenant under special conditions where the tenant poses a danger to the maintenance of the premises.

Are Pet Deposits Allowed In South Dakota?

Landlords in South Dakota may also impose a pet deposit to cover potential damages caused by pets. This deposit complements the security deposit and serves as additional financial protection against pet-related wear and tear. 

Importantly, under federal guidelines from the U.S. Department of Housing and Urban Development (HUD), landlords must accommodate service animals regardless of any 'no pets' policies in place.

Allowable Deductions From Security Deposits In South Dakota?

Landlords have the right to deduct certain costs from a tenant's security deposit as outlined in South Dakota law. Acceptable deductions include:

  • Unpaid rent or fees
  • Repair costs for damages exceeding normal wear and tear
  • Cleaning expenses if the property is left excessively dirty
  • Replacement or repair costs for items listed in the rental agreement that are damaged or missing
  • Outstanding utility bills or other agreed-upon charges

South Dakota Codified Law § 43-32-24

Do Landlords Need To Provide an Itemized Receipt For Deductions?

Should the tenant request a receipt of the deductions, landlords must provide an itemized list of any deductions along with the remaining balance of the deposit within 45 days. This list should clearly detail each deduction's purpose and amount. (S.D. Codified Law § 43-32-24)

How Must Landlords Hold Security Deposits In South Dakota?

South Dakota does not mandate that security deposits be held in separate accounts or accrue interest while held by landlords. This provision grants landlords flexibility in managing these funds. 

How Long Do Landlords Have to Return Security Deposits In South Dakota?

Upon lease termination, landlords are required by law to return the full security deposit within 14 days unless deductions are warranted. If deductions are made, landlords must provide a written statement detailing these deductions within 45 days after receiving the tenant’s forwarding address. (S.D. Codified Law § 43-32-24)

Failure to comply with these requirements can result in legal action against the landlord, allowing tenants to sue for up to double the amount of the security deposit withheld improperly.

Do Landlords Need To Pay Interest On Security Deposits in South Dakota?

South Dakota landlords are not mandated by state law to pay tenants interest accrued on security deposits. 

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SECTION 5

5) South Dakota Leasing Agreements

A rental agreement, often known as a lease, is a legally binding document in South Dakota that outlines the terms and conditions between a landlord and tenant for property rental. 

Below are some of the key components that should be included in a South Dakota lease agreement to ensure compliance with state laws. 

Key Components of a South Dakota Lease Agreement

  • Identification of Parties: A lease must clearly identify all parties involved, including the full names and contact information of both the landlord and tenant. This identification is crucial for accountability regarding the lease terms and helps prevent disputes related to responsibilities under the agreement.
  • Property Description: The lease should include a detailed description of the rental property, specifying its address and any required disclosures. For example, properties built before 1978 must include lead-based paint warnings, as mandated by federal law. Additionally, if the property was previously used for methamphetamine production, this must also be disclosed to the tenant as per South Dakota law.
  • Lease Duration: South Dakota law accommodates both fixed-term leases (commonly lasting one year) and month-to-month agreements. The lease should specify its duration and any options for renewal. If no term is explicitly provided, South Dakota law presumes the agreement to be month-to-month, offering flexibility for both landlords and tenants.
  • Rent and Security Deposit: The lease must clearly state the rent amount, payment due dates, and acceptable payment methods. In South Dakota, security deposits are limited to one month's rent for annual leases; however, there is no maximum for month-to-month agreements until the tenancy has reached one year. Security deposits must be returned within 14 days after the lease ends unless deductions are necessary, in which case an itemized list of deductions must be provided within 45 days.
  • Maintenance Responsibilities: The lease should outline maintenance obligations for both parties. Landlords are responsible for ensuring that the property remains habitable and safe, while tenants are expected to maintain cleanliness and promptly report any repair needs. Clear delineation of these responsibilities can help prevent misunderstandings during tenancy.
  • Utilities and Services: It is vital to specify which utilities are included in the rent and which are the tenant's responsibility. This clarity helps avoid disputes over utility payments and ensures both parties understand their obligations regarding service provision.
  • Termination and Renewal Conditions: The lease must detail conditions for termination, including notice requirements—at least 60 days for landlords—and renewal options. Tenants should be informed of their rights regarding early termination to avoid potential legal conflicts.
  • Additional Clauses: Including specific provisions can cater to unique needs such as rent increases or subletting policies. Landlords may wish to consult legal counsel when drafting these clauses to ensure compliance with South Dakota law.

Legal Considerations: Are Oral Lease Agreements Allowed In South Dakota?

South Dakota law mandates that all rental agreements exceeding one year be in writing to be enforceable (SDCL § 43-32-1). 

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SECTION 6

6) South Dakota Laws Around Breaking a Lease for Landlords and Tenants 

Premature termination of a lease can have significant financial and legal implications for both tenants and landlords in South Dakota. Understanding the relevant laws and procedures is crucial for both parties to navigate this process effectively.

Financial Implications of Breaking a Lease

When tenants break a lease in South Dakota, they may face various financial penalties. These can include:

  • Unpaid Rent: Tenants remain liable for rent until the property is re-rented or the lease term expires.
  • Advertising Costs: Landlords may charge tenants for the costs incurred to advertise the property for rent.
  • Re-renting Costs: Any expenses related to finding new tenants, such as commissions to rental agents, may also be passed on to the tenant.

Additionally, landlords are permitted to impose an early termination fee if specified in the lease agreement. However, South Dakota law mandates that landlords must make reasonable efforts to mitigate damages by attempting to re-rent the property promptly .

Notice Requirements

The notice period required for terminating a lease in South Dakota varies based on the duration of the lease:

  • Notice Required to Terminate Lease With A Fixed End Date: Notice is not required, as the lease simply terminates on the date agreed to in the lease (§§ 43-32-22(1)).
  • Notice Required to Terminate A Yearly Lease with No End Date: Any rental agreement for a period longer than a year must be agreed to in writing. (§§ 43-32-5)
  • Notice Required to Terminate Month-to-Month Lease: 30-day written notice required. The tenant may give notice to terminate the lease effective the first day of the next month within 15 days of receiving notice from the landlord of a modification to the lease. Tenants at will who are active military servicemembers, and their immediate family, are entitled to two months’ written notice. See §§ 43-8-8 for restrictions. (§§ 43-32-13 and §§ 43-8-8)
  • Notice required to Terminate A Week-to-Week Lease: If no end date is specified in the agreement, one-week notice required to terminate (§§ 43-32-15).

This notice should clearly state the intent to terminate the lease and must be delivered in writing to ensure compliance with state laws.

Legal Grounds for Breaking a Lease

There are specific circumstances under which tenants may legally break a lease without incurring penalties:

  • Job Relocation: If a tenant must move for employment reasons, they may qualify for early termination.
  • Military Deployment: Tenants called to active military duty can terminate their leases under the Servicemembers Civil Relief Act.
  • Health Issues: Serious health problems that necessitate a change in living arrangements may also justify breaking a lease.
  • Uninhabitable Conditions: If the rental property becomes uninhabitable due to significant damage or lack of essential services, tenants may have grounds to terminate their lease early .

SECTION 7

7) South Dakota Eviction Process and Law

In South Dakota, the eviction process is governed by the South Dakota Landlord-Tenant Code (SDCL § 21-16), which provides a structured framework to ensure fairness for both landlords and tenants. This process emphasizes due process and outlines the necessary procedures and grounds for eviction.

Before a landlord can start the eviction process, they must first give the tenant an official 3-Day Notice to Cure or Quit in writing.

If the tenant fails to remedy the lease violation or otherwise vacate the rental unit after the three-day notice, the landlord may continue filing for a Forcible Entry and Detainer action.

Grounds For Eviction In South Dakota

Landlords in South Dakota can initiate eviction proceedings based on several valid grounds:

  • Nonpayment of Rent: If a tenant fails to pay rent, landlords may issue a 3-Day Notice to Pay or Quit, which requires the tenant to pay the overdue rent or vacate the premises within three days. (§§ 43-32-12 and §§ 21-16-1(4)).
  • Lease Violations: Tenants who violate lease terms—such as causing property damage or engaging in illegal activities—can be evicted. A landlord must provide a notice that specifies the violation and allows the tenant time to remedy the situation. (§§ 43-32-18).
  • Expiration of Lease: When a lease term expires, landlords may choose not to renew it. If the tenant does not leave voluntarily, eviction proceedings can commence.
  • Illegal Activities: Involvement in illegal activities on the property is a legitimate reason for eviction, as landlords are responsible for maintaining a safe environment.
  • Nuisance or Disturbance: Continuous disruptive behavior by a tenant can justify eviction if it affects other tenants' peaceful enjoyment of their homes.
  • Health and Safety Violations: Neglecting property maintenance that leads to health hazards can also be grounds for eviction.
  • Refusal to Vacate After Termination Notice: If a tenant does not leave after receiving a valid termination notice, the landlord can pursue eviction.
  • Illegal Subletting: Subletting without consent or in violation of lease terms can result in eviction.
  • Breach of Quiet Enjoyment: If a landlord disrupts a tenant's peaceful living conditions significantly, this may provide grounds for the tenant to seek legal remedies against the landlord.

Delivering South Dakota Eviction Notices

In South Dakota, any notice of termination must be written and delivered properly. Key requirements include:

  • Notice Period: For month-to-month tenancies, a 30-day written notice is required (§§ 43-32-13. For fixed-term leases, landlords are not obligated to provide notice unless specified in the lease (§§ 43-32-22(1)). For lease violations a 3-day notice is required. (§§ 43-32-12)
  • Delivery Methods: Notices can be hand-delivered, sent via certified mail, or delivered electronically if both parties agree.
  • Content of Notice: The notice must clearly state the intention to terminate tenancy, specify any violations, and include relevant details such as the termination date (SDCL § 21-16-1).

South Dakota Eviction Process

The eviction process in South Dakota follows specific steps:

  • Notice to Quit: The landlord serves the tenant with a written notice detailing the violation and providing time to remedy it or vacate.
  • Filing a Complaint: If no action is taken by the tenant, landlords may file an eviction complaint with the court, including lease details and evidence of violations.
  • Serving Summons and Complaint: The tenant must receive a copy of the summons and complaint through an authorized person or certified mail.
  • Court Hearing: Both parties present their cases in court. The judge evaluates evidence based on legal standards and lease terms.
  • Writ of Restitution: If ruled in favor of the landlord, a Writ of Restitution is issued, allowing them to regain possession of the property within a specified timeframe.
  • Enforcement: Should the tenant fail to vacate voluntarily, law enforcement may assist in removing them from the property (SDCL § 21-16-11).

 

SECTION 8

8) South Dakota HOA Laws

Homeowners associations (HOAs) in South Dakota operate under a framework of state laws and regulations that govern their establishment, management, and operational activities. Both landlords and tenants should familiarize themselves with these laws to ensure compliance and protect their rights.

South Dakota Condominium Law

The South Dakota Condominium Law  governs condominium associations that choose to be regulated by this act. To do so, these associations must file a master deed or declaration with the county's register of deeds. 

This law outlines the rights of condominium owners concerning common areas and individual units, ensuring clarity in ownership and management responsibilities. (South Dakota Condominium Law)

South Dakota Nonprofit Corporation Act 

Many HOAs in South Dakota are organized as nonprofit corporations and are thus governed by the South Dakota Nonprofit Corporation Act. This act covers the corporate structure, governance procedures, and operational requirements for nonprofit entities, including HOAs. 

Compliance with this act is essential for maintaining the legal status of an association and its ability to enforce community rules. (South Dakota Nonprofit Corporation Act)

South Dakota Human Relations Act 

The South Dakota Human Relations Act prohibits discrimination in housing based on various factors such as race, color, national origin, sex, religion, familial status, and disability. This act aligns closely with federal laws like the Fair Housing Act and protects residents from discriminatory practices in housing transactions. 

Victims of discrimination can file complaints with state or federal agencies or pursue legal action. (South Dakota Human Relations Act)

SECTION 9

9) South Dakota Squatters Rights Laws

In South Dakota, the legal framework surrounding squatters' rights is primarily defined through the concept of adverse possession. This allows individuals who occupy a property without permission to potentially gain legal ownership after meeting specific criteria over a designated period.  

Below is an overview of the key requirements for filing adverse possession in South Dakota.

Requirements to Make an Adverse Possession Claim

To successfully assert a claim for adverse possession, the following conditions must be met:

  • Hostile Possession: The individual must occupy the property without permission from the rightful owner. This occupation must be contrary to the interests of the property owner, meaning there is no legal lease or agreement in place.
  • Open and Notorious Possession: The occupation must be visible and apparent to anyone, including neighbors and the property owner. This means that the squatter cannot hide their presence; their use of the property should be obvious.
  • Actual Possession: The squatter must physically inhabit or utilize the property. Merely leaving belongings on the property is insufficient; there must be clear evidence of living there.
  • Exclusive Possession: The squatter must maintain exclusive control over the property, preventing others from using it. If multiple individuals occupy the property, this requirement may not be satisfied.
  • Continuous Possession: In South Dakota, squatters must occupy the property for at least 20 consecutive years to file an adverse possession claim. However, if they have a "color of title"—a document that suggests ownership—and have paid property taxes during this time, this period can be reduced to 10 years.

Source: Codified Law 15-3 | South Dakota Legislature (.gov)

SECTION 10

10) South Dakota Landlord Tenant Legal Resources

Below, you’ll find some helpful South Dakota landlord–tenant law resources:

Documents and Forms

Legal Resources

South Dakota State Agencies & Regulatory Bodies

South Dakota Housing Authorities

South Dakota REALTORS® Associations

South Dakota Landlord Associations