Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In South Dakota, landlords can require tenants to pay a security deposit as a condition of renting property. The state does not set a statutory limit on the maximum amount a landlord can charge for a security deposit. However, South Dakota law does regulate the handling of these deposits. According to SDCL 43-32-6.1, a landlord must return the security deposit, minus any deductions for damages beyond normal wear and tear, unpaid rent, or other charges as specified in the lease agreement, within two weeks after the termination of the tenancy and delivery of possession by the tenant. If any portion of the deposit is withheld, the landlord is required to provide the tenant with a written itemized list of deductions. If a landlord fails to comply with these requirements, the tenant may be entitled to recover damages, costs, and attorney's fees.