South Dakota tenant screening laws: a landlord's guide

South Dakota has no state cap on application or screening fees. Neither Title 43, Ch. 32 nor Title 37 addresses a fee cap, so this is generally left to the lease agreement and market practice; confirm any local fee ordinance against current municipal code.

South Dakota's housing discrimination statute lists race, color, creed, religion, sex, ancestry, disability, familial status, and national origin as protected traits (SDCL §20-13-20) — notably including "creed" and "ancestry," which the federal Fair Housing Act does not name separately. Criminal history is not addressed in this statute, and South Dakota has no state lookback limit on criminal records in housing decisions. The underlying Fair Housing Act and case law such as Texas Dept. of Housing & Community Affairs v. Inclusive Communities Project (2015) remain in effect. A documented, individualized, and consistently applied criminal-history policy is generally the more defensible approach.

Source of income (including housing vouchers) is not listed among the protected traits in South Dakota's housing discrimination statute. That means, under state law, a landlord generally may decline an applicant solely because they intend to pay with a voucher. Confirm any applicable local ordinance before finalizing a screening policy.

The FCRA §615 baseline applies: notify the applicant, provide the consumer reporting agency's contact information, and explain the applicant's right to dispute the report and obtain a free copy. South Dakota has no state-specific addition to federal adverse-action requirements.

South Dakota generally caps the security deposit at one month's rent, though a larger deposit may be mutually agreed upon where special conditions pose a danger to the premises (SDCL §43-32-6.1). Within two weeks after the tenancy ends and the landlord receives the tenant's forwarding address or delivery instructions, the landlord must return the deposit or send a written statement of specific reasons for withholding it; an itemized accounting must be provided within 45 days of termination upon the tenant's request (SDCL §43-32-24). A landlord who doesn't comply forfeits the right to withhold any portion of the deposit, and bad-faith retention can result in punitive damages of up to $200 in addition to the deposit itself.

South Dakota statutes do not establish rent control or a general just-cause eviction requirement. For month-to-month tenancies, a landlord may modify lease terms — including raising rent — by giving at least 30 days' written notice before the end of the month; the tenant may then terminate effective the first of the next month by notifying the landlord within 15 days of receiving that notice (SDCL §43-32-13). South Dakota law also prohibits evicting a tenant, or including a lease term that would allow eviction, solely because the tenant or a household member is a victim of domestic abuse, unlawful sexual behavior, or stalking, or because they called law enforcement or emergency responders about such an incident (SDCL §43-32-18.1). For entry onto the premises, landlords generally must give reasonable notice — 24 hours' written notice is presumed reasonable — specifying the date, time window, purpose, and a way for the tenant to request rescheduling (SDCL §43-32-32).

South Dakota's local government is organized primarily around counties, with civil townships handling some functions in parts of the state, rather than the city/unincorporated-county split found in California. Confirm current city-specific tenant-screening, source-of-income, fair-chance, and rent-control requirements for Sioux Falls, Rapid City, and Aberdeen before finalizing a screening policy, including current municipal authority under Title 9 (Municipal Government) and Title 43.

Does South Dakota cap security deposits? Generally yes — one month's rent, with an exception allowing a larger deposit by mutual agreement where special conditions pose a danger to the premises.

How long does a South Dakota landlord have to return a deposit? Generally two weeks after the tenancy ends and the landlord receives the tenant's forwarding address, with an itemized accounting available within 45 days upon request.

Is source of income a protected class in South Dakota? No, not under state law as currently written.

Does South Dakota have rent control? South Dakota has no statewide rent-control statute. Confirm any local rent-control ordinance against current municipal code.

Checkr helps landlords and property managers in South Dakota run FCRA-compliant background checks efficiently, so you can screen applicants consistently while staying focused on filling your unit. Get started with Checkr to build a screening process suited to your properties.

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.