South Dakota Standard Residential Lease Agreement

Introduction

A South Dakota standard residential lease agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that establishes the terms and conditions for renting residential property. This agreement governs rent payments, security deposits, maintenance responsibilities, and the rights and obligations of both parties. South Dakota residential leases are primarily regulated by South Dakota Codified Laws (SDCL) Chapter 43-32, titled "Lease of Real Property." ^[1]

The lease outlines the rental price, contract term, and any additional fees or deposits required by the landlord. Terms are typically negotiated after the tenant has viewed the property and expressed interest. Before signing, landlords commonly verify tenant credentials through a rental application that includes credit reports, employment verification, income verification, and rental history.

Legal Framework

South Dakota's landlord-tenant law is codified primarily in SDCL Chapter 43-32, which addresses lease creation, landlord and tenant obligations, security deposits, eviction procedures, and other key aspects of the rental relationship. Additional provisions relating to eviction procedures (forcible entry and detainer) are found in SDCL Chapter 21-16. ^[2]

Under South Dakota law, a lease is defined as a contract where one party (the lessor or landlord) gives another party (the lessee or tenant) temporary possession and use of real property in exchange for payment, with the tenant agreeing to return the property at a future time. Leases for more than one year must be in writing to be enforceable under the Statute of Frauds (SDCL 43-32-5). While oral leases for one year or less are valid, written agreements are strongly recommended to avoid disputes.

Required Disclosures

South Dakota law requires landlords to make the following disclosures to tenants before or at the commencement of the tenancy:

Lead-Based Paint Disclosure (federal Requirement)

For all residential properties built before 1978, federal law under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. 4852d) requires landlords to disclose known information about lead-based paint and lead-based paint hazards. Landlords must provide tenants with the EPA pamphlet "Protect Your Family From Lead in Your Home," disclose any known lead-based paint or hazards, and include a Lead Warning Statement in the lease. Tenants must be given a 10-day opportunity to conduct a lead inspection before becoming obligated under the lease. ^[3]

Methamphetamine Disclosure

Under SDCL 43-32-30, any landlord who has actual knowledge of prior methamphetamine manufacturing on the premises must disclose that information to any lessee or prospective lessee. For multi-unit properties, this disclosure requirement applies only to the specific unit where manufacturing is known to have occurred. Failure to disclose may expose the landlord to liability. ^[4]

Security Deposit Laws

Maximum Amount

Under SDCL 43-32-6.1, South Dakota landlords may not demand or receive a security deposit in an amount exceeding one month's rent. However, a larger deposit may be agreed upon between the landlord and tenant where special conditions pose a danger to maintenance of the premises (such as pets or extraordinary circumstances). Any deposit securing the performance of a residential rental agreement is deemed a security deposit regardless of what it is called. ^[5]

Return of Security Deposit

Under SDCL 43-32-24, landlords must return the security deposit within two weeks (14 days) after the termination of the tenancy AND receipt of the tenant's mailing address or delivery instructions. The landlord must either return the full deposit or provide a written statement showing the specific reason for withholding any portion. ^[6]

Permissible Deductions

Landlords may withhold from the security deposit only amounts reasonably necessary to:

• Remedy tenant defaults in the payment of rent
• Cover other funds due to the landlord pursuant to the lease agreement
• Restore the premises to their condition at commencement of tenancy, ordinary wear and tear excepted

Itemized Accounting and Penalties

Upon request by the tenant, the landlord must provide an itemized accounting of any deposit withheld within 45 days of tenancy termination. Failure to comply with security deposit return requirements results in the landlord forfeiting all rights to withhold any portion of the deposit. Bad faith retention of a deposit subjects the landlord to punitive damages of up to $200.

Rent Payment Laws

Grace Period

South Dakota law does not require landlords to provide a grace period for rent payment. Unless the lease agreement specifies otherwise, rent is due on the date agreed upon in the lease. Landlords may begin eviction proceedings if rent is not paid within 3 days of the due date. ^[7]

Late Fees

South Dakota does not impose a statutory maximum on late fees. However, late fees should be reasonable and clearly stated in the lease agreement. Courts may refuse to enforce late fees that are deemed excessive or punitive.

Nsf/returned Check Fees

Under SDCL 57A-3-421, landlords may charge up to $40 as a fee for a returned (bounced) check, plus applicable sales tax. This fee must be properly disclosed to tenants, typically in the lease agreement. ^[8]

Landlord Right of Entry

Under SDCL 43-32-32, landlords must provide tenants with reasonable notice before entering the rental property, except in emergencies or where impractical. 24 hours written notice is presumed reasonable unless alternate notification methods or entry times are mutually agreed upon in the lease. ^[9]

The notice must include:

• The date or dates of intended entry
• A time period during normal business hours for entry
• The purpose of the entry
• A means for the tenant to request rescheduling

Emergency situations (such as fire, flooding, or gas leaks) do not require advance notice.

Habitability Requirements

Under SDCL 43-32-8, South Dakota landlords have a non-waivable duty to maintain rental premises in habitable condition throughout the tenancy. This includes keeping the premises and common areas in reasonable repair and fit for human habitation, and maintaining electrical, plumbing, and heating systems in good and safe working order. ^[10]

The landlord is NOT responsible for disrepair caused by the negligent, willful, or malicious conduct of the tenant or persons under the tenant's direction or control.

Tenant Remedies for Disrepair

Under SDCL 43-32-9, if a landlord neglects to make necessary repairs within a reasonable time after notice, tenants have several remedies: ^[11]

1. Repair and Deduct: For minor repairs, tenants may make repairs themselves and deduct the expense from rent, or otherwise recover costs from the landlord.

2. Rent Withholding (Escrow): If repair costs exceed one month's rent, the tenant may withhold rent after providing written notice stating the specific reason. The withheld rent must be deposited in a separate bank or savings account, with written evidence provided to the landlord. Funds remain in escrow until the landlord makes repairs or sufficient money accumulates for the tenant to arrange repairs.

3. Vacate: The tenant may vacate the premises and be discharged from additional rent charges or other obligations.

Lease Termination

Under SDCL 43-32-22, a lease is terminated by: (1) expiration of the agreed term; (2) mutual consent of the parties; or (3) the tenant acquiring title to the premises superior to the landlord's. ^[12]

Notice Requirements for Month-To-Month Tenancies

For month-to-month tenancies, either party must provide at least one month's notice (30 days) before termination. Under SDCL 43-32-15, a hiring not specified by the parties is deemed renewed at the end of the implied term unless notice of termination is given at least as long before expiration as the term itself (not exceeding one month).

Lease Modification by Landlord

Under SDCL 43-32-13, landlords may modify lease terms (including rent) by providing at least 30 days written notice before the expiration of the month. If the tenant continues to occupy the premises after the month expires, the modified terms take effect. However, the tenant may terminate the lease effective the first day of the next month by providing notice within 15 days of receiving the modification notice.

Eviction Process (forcible Entry and Detainer)

South Dakota evictions are conducted through "Forcible Entry and Detainer" actions governed by SDCL Chapter 21-16. The landlord may terminate a lease and initiate eviction proceedings when: ^[13]

• The tenant fails to pay rent for 3 days after it is due
• The tenant uses the premises contrary to the lease agreement
• The tenant holds over after the lease term expires
• The tenant fails to make required repairs within a reasonable time

2024 Update: The eviction process was modified in 2024. The separate notice requirement (former SDCL 21-16-2) was removed, and the process now begins with a Summons and Complaint providing 5 days for tenant response (changed from 4 days). The entire eviction process typically takes 2-6 weeks from filing to enforcement.

Retaliation Protections

Under SDCL 43-32-27 and 43-32-28, South Dakota provides strong protections against landlord retaliation. A landlord may NOT retaliate against a tenant by increasing rent above fair market value, decreasing essential services (electric, gas, water, sewer), or issuing a notice to vacate that is not based on lease breach, when the retaliation follows: ^[14]

• The tenant's good faith complaint to a government agency about building or housing code violations materially affecting health and safety
• The tenant's written notice to the landlord of conditions requiring repair
• The tenant's organization of or membership in a tenant's union

Remedies: Tenants may recover damages equal to two months' rent plus the return of any advance rent and deposits. Courts may also award reasonable attorney's fees. The landlord has a defense if the notice to vacate was given more than 180 days after the triggering event.

Domestic Violence Lease Termination

Under SDCL 43-32-19.1, tenants or household members who are victims of domestic abuse, unlawful sexual behavior, or stalking may terminate their lease early without penalty. To exercise this right, the tenant must provide written notice stating termination is due to fear of imminent danger, along with supporting documentation from the preceding 30 days: ^[15]

• A police report regarding the alleged incident, OR
• A protection order issued in response to the incident, OR
• Documentation signed by a licensed health care provider indicating examination and reasonable cause to believe the tenant/household member was a victim

Qualifying tenants are not liable for early termination fees or rent for the month following vacation of the premises. Landlords must keep any forwarding address confidential (SDCL 43-32-19.2).

Fair Housing Compliance

All residential leases in South Dakota must comply with federal and state fair housing laws. The federal Fair Housing Act (42 U.S.C. 3601-3619) prohibits discrimination based on race, color, national origin, religion, sex (including sexual orientation and gender identity per HUD guidance), familial status, and disability. ^[16]

South Dakota's Human Relations Act (SDCL Chapter 20-13) provides additional protections prohibiting discrimination based on creed and ancestry. These protections apply to advertising, tenant screening, lease terms, and all aspects of the landlord-tenant relationship.

Complaints may be filed with the South Dakota Division of Human Rights or the U.S. Department of Housing and Urban Development (HUD).

Service and Assistance Animals

Under SDCL 43-32-33 through 43-32-36, South Dakota has specific rules regarding service and assistance animals in rental housing. Landlords may request reliable supporting documentation from tenants asserting a disability requiring a service animal or assistance animal accommodation, unless the disability or need is readily apparent or already known to the landlord. ^[17]

Documentation must confirm the tenant's disability and the relationship between the disability and the need for accommodation. It must come from a licensed health care provider who does not operate solely to provide certification for service animals.

Fraud Penalties: Tenants found to have knowingly made false disability claims or provided fraudulent documentation may be evicted and liable for damages up to $1,000.

Abandoned Property

South Dakota law provides specific rules for handling property left behind by tenants: ^[18]

Property valued at $500 or less: Under SDCL 43-32-25, property left on the premises for 10 days after the tenant has quit is presumed abandoned. The landlord may dispose of it.

Property valued over $500: Under SDCL 43-32-26, the landlord must store the property and has a lien for handling and storage costs. After 30 days of storage, the landlord may treat the property as abandoned and dispose of it.

Mobile and Manufactured Home Tenancies

Under SDCL 43-32-31, if a landlord develops leased mobile home lot property for an alternate use, the landlord must provide at least 90 days notice to vacate and remove the mobile or manufactured home from the property. This extended notice requirement does not apply if eviction is based on a breach of the lease terms. ^[19]

Essential Lease Terms

While South Dakota law does not mandate specific lease provisions (except disclosures), a comprehensive residential lease should include:

• Names and contact information of all parties
• Property address and description
• Lease term (start and end dates)
• Rent amount, due date, and acceptable payment methods
• Security deposit amount and return conditions
• Late fee and NSF fee provisions
• Utility responsibilities
• Maintenance and repair responsibilities
• Pet policy (if applicable)
• Rules regarding guests, noise, and common areas
• Entry notice provisions
• Termination and renewal procedures
• Required disclosures (lead paint, methamphetamine)