What action must landlords take regarding security deposits in South Dakota?

Landlords in South Dakota are required to provide a written explanation of any deductions taken from a security deposit within 21 days of the tenant moving out. This regulation is important because it ensures transparency in the handling of security deposits and helps to protect tenants' rights.

When a tenant vacates a rental property, the landlord must inspect the property and determine if any part of the security deposit will be withheld for damages beyond normal wear and tear, cleaning costs, or unpaid rent. By issuing a written explanation, landlords clarify the reasons for deduction, which helps avoid disputes and misunderstandings between the landlord and tenant. This requirement is key in fostering communication and maintaining a fair rental relationship.

Though providing receipts for deductions could be a good practice, it's not a legal requirement specific to South Dakota. Similarly, while landlords may choose to place security deposits in interest-bearing accounts, this is not mandated. A standard timeline of 30 days for refunding the deposit is not precise under South Dakota law, as the focus is specifically on the 21-day window for explanation of deductions.