A South Dakota lease agreement is a legally binding contract that stipulates the terms and conditions for residential and commercial leases in South Dakota.
Whether you are the landlord or the tenant, it is important to have a lease agreement that structures all your rights and obligations, lease terms, and rent amount. By having such a legal document signed, you minimize the possibility of having any disputes with the other contractual party and can protect your rights before the court.
Before the lease agreement drafting process starts, the landlord asks the tenant to submit a rental application. It contains all the tenancy-related information about the tenant, including their financial details and references from previous landlords. The landlord may also do a background check on the tenant.
After the landlord reviews the rental application, they choose the most suitable tenant and start the negotiation and lease agreement drafting process.
South Dakota Lease Agreement Required Disclosures
There are two mandatory disclosures every lease agreement in South Dakota must include:
Lead-based paint disclosure. This disclosure is declared mandatory by federal law for any leased property built before 1978 or if the landlord knows the lead-based paint hazard exists. (Section 1018 of Title X)
Methamphetamine disclosure. If the landlord knows that the leased property was used for methamphetamine production, they must disclose this information to the prospective tenant before the lease term starts. (§ 43-32-30)
South Dakota Lease Agreement Optional Disclosures
Additionally, there are a few more disclosures that most of the contractual parties choose to include in their lease agreement. Although they are not required by any federal or state law, the following disclosures give you additional protection:
Asbestos disclosure. This disclosure should be included in the lease agreement for any leased property built before 1978 to inform the tenant about the presence of asbestos. It also provides guidelines on how not to disturb the asbestos fibers when using the property.
Smoking disclosure. The landlord can allow or forbid smoking at the leased property. They can also inform the tenant about the designated smoking areas at the leased property.
Shared utilities disclosure. This disclosure shall be included if the leased unit shares the same electricity, gas, or water meter with other residential units. If that is the case, the tenant shall be informed about the formula for calculating the portion the tenant must pay.
Consequences of Non-Disclosure
Federal law provides fines of up to $19,507 for each violation related to the non-disclosure of the lead-based paint hazard in the lease agreement. (24 CFR § 30.65)
Moreover, the landlord can be sued in civil court for damages caused by health and safety risks not properly mentioned in the lease agreement.
South Dakota Lease Agreement Security Deposits
Security Deposit Maximum
The maximum security deposit in South Dakota is set to be no more than one month’s rent. (§ 43-32-6.1)
In special cases where there is a higher need for property maintenance, the landlord and the tenant can agree on a higher security deposit.
Security Deposit Return
After the lease is over and the tenant provides the new forwarding address, the landlord has two weeks to return the security deposit to the tenant.
If there is any default rent or damage outside of the usual wear and tear, the landlord can keep a portion of the security deposit. Upon the tenant’s request, the landlord shall also send an itemized list of all deductions within 45 days.
When is Rent Due in South Dakota? (Grace Period)
The rent in South Dakota is due on the date provided in the lease agreement.
There is no grace period for the rent payment stipulated in the South Dakota Statute.
That means the landlord can start charging the late fee as soon as the due date is over. They can also start the eviction after sending the tenant a 3-day notice to pay or quit.
South Dakota Rent Late Fees
There is no maximum amount allowed for late fees in South Dakota. However, to be legally charged to the tenant, all the late fees must be disclosed in the lease agreement.
South Dakota NSF Checks
If the check the tenant issued gets returned because of insufficient funds, the landlord is entitled to compensation according to South Dakota law.
The compensation is limited to no more than $40 for the processing fee plus the additional sales tax. (§ 57A-3-421)
South Dakota Landlord’s Right to Enter
The landlord must issue at least a 24-hour advance notice to the tenant before visiting the leased property. The 24-hour notice rule can be changed if the landlord and the tenant agree. (§ 43-32-32)
The notification must specify the date, time, and purpose of the access to the leased property.
The landlord can visit the property only at reasonable times. In practice, this would usually be between 9 a.m. and 8 p.m.
South Dakota Lease Agreement FAQ
Yes, the lease agreement is a legally binding contract in South Dakota.
Once both parties sign the lease, it is considered fully valid and enforceable by law.
If some of the clauses in the lease agreement are declared invalid by the law, this shall not affect the validity of the lease agreement as a whole.
The South Dakota lease agreement should have the following structure:
Names and other information about the landlord and tenant
Details about the leased property
Term of the lease and the possibility of extending it
Rent amount, dynamics, and methods of payment
Security deposit and late fees
Rights and obligations of the landlord and tenant
Mandatory disclosures provided by federal and state law
Lease agreement termination rules
Date and place of lease agreement signing
Signatures of the landlord and the tenant
The best way to get a professional lease agreement for a property located in South Dakota is to download one of the many South Dakota lease agreement templates on our website.
Depending on the duration and type of the lease, you can choose between:
Fixed-term or month-to-month lease agreement
Commercial or residential lease agreement
Room rental lease agreement
Rent-to-own lease agreement
The next step after making the lease agreement is to visit the leased property and inspect it before moving in.
The landlord and the tenant should inspect the property together and ensure there are no damaged items or no cleaning needs to be done. After the inspection, they should sign the move-in form.
Finally, the tenant should pay the first month’s rent and the deposit, and the landlord should give the property keys to the tenant.