Earn up to [v="apyvalue"] APY2. No account fees. No minimum balances.

South Dakota security deposit account for landlords

Easily collect and manage deposits for every property with dedicated security deposit accounts.

Multiple accounts per property
No monthly account maintenance fees or minimum balances
Earn up to [v="apyvalue"] APY² interest

Benefits of security deposit accounts in {{ state }}

Landlords

  • Provides financial protection for landlords in the event of property damage caused by tenants
  • Allows landlords to recoup losses from unpaid rent or other costs associated with the lease agreement
  • Covers the cost of any repairs that need to be done on the property after a tenant leaves
  • Gives landlords peace of mind that there will be a financial cushion if anything goes wrong during the tenancy period

Tenants

  • Provides financial protection for landlords in the event of property damage caused by tenants
  • Allows landlords to recoup losses from unpaid rent or other costs associated with the lease agreement
  • Covers the cost of any repairs that need to be done on the property after a tenant leaves
  • Gives landlords peace of mind that there will be a financial cushion if anything goes wrong during the tenancy period

Benefits of security deposit accounts in {{ state }}

Landlords

  • Repair & Maintenance Coverage: Covers property damage such as paint, carpet, or floor damage, including cleaning costs for pets.
  • Fund separation: Meet state requirements for holding deposits in a dedicated South Dakota landlord security deposit account.
  • Streamlined Returns: Simplifies tenant deposit refunds while accounting for deductions like cleaning or unpaid utilities.

Tenants

  • Fair protection: Tenant security deposit funds are protected from misuse, covering only repairs for damages or unpaid rent.
  • Transparency on Deductions: Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
  • Savings Potential: Security deposits in South Dakota may be held in an account that earns security deposit interest, helping tenants recover more than they put in.

Why use a security deposit account in {{ state }}

Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.

Benefits for
property owners
  • Repair & Maintenance Coverage: Covers property damage such as paint, carpet, or floor damage, including cleaning costs for pets.
  • Fund separation: Meet state requirements for holding deposits in a dedicated South Dakota landlord security deposit account.
  • Streamlined Returns: Simplifies tenant deposit refunds while accounting for deductions like cleaning or unpaid utilities.
Benefits
for tenants
  • Fair protection: Tenant security deposit funds are protected from misuse, covering only repairs for damages or unpaid rent.
  • Transparency on Deductions: Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
  • Savings Potential: Security deposits in South Dakota may be held in an account that earns security deposit interest, helping tenants recover more than they put in.

Why use a security deposit account in {{ state }}

Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.

Benefits for
property owners
  • Repair & Maintenance Coverage: Covers property damage such as paint, carpet, or floor damage, including cleaning costs for pets.
  • Fund separation: Meet state requirements for holding deposits in a dedicated South Dakota landlord security deposit account.
  • Streamlined Returns: Simplifies tenant deposit refunds while accounting for deductions like cleaning or unpaid utilities.
Benefits
for tenants
  • Fair protection: Tenant security deposit funds are protected from misuse, covering only repairs for damages or unpaid rent.
  • Transparency on Deductions: Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
  • Savings Potential: Security deposits in South Dakota may be held in an account that earns security deposit interest, helping tenants recover more than they put in.

Security deposit rules in {{ state }}

  • Limit 1 month's rent, plus a reasonable amount for additional risks to the property, e.g., pets
  • Return Deadline: The security deposit must be returned within 2 weeks
  • Acceptable Deductions: Unpaid rent, and damage beyond normal wear and tear
  • Where to Deposit: Interest-bearing accounts are not required for security deposits in South Dakota.

Why choose Baselane

Manage security deposits and more

  • All-in-one platform with banking, rent collection, accounting and more
  • Eligible to hold security deposits*
  • Free rent collection that’s landlord and renter friendly
  • Earn up to [v="apyvalue"] APY2
  • Comprehensive cash flow analytics and reporting
  • Modern user interface and experience
  • Excellent customer support

Take control of your spend

Open a security deposit account and use physical & virtual debit cards with custom spend controls and automated transaction tagging with Schedule E categories.

Easily collect and return security deposits

Collect funds for security deposits via ACH, wire or check.

Why choose Baselane

{{ state }} Security Deposit Account

You are not legally required to hold funds in a specific security deposit bank account in South Dakota. However, many landlords open a separate account to hold the tenant security deposit South Dakota residents provide to avoid commingling and ensure the money is ready for a quick return and deductions when the tenant moves out.

‍

{{ state }} Security Deposit Limits

The maximum security deposit South Dakota allows is equal to one month’s rent. The average security deposit falls between $1,000 to $1,200, matching the current typical monthly rent for a one- or two-bedroom home.

‍

{{ state }} Security Deposit Interest

State law security deposit rules don’t mandate paying interest on security deposits in South Dakota. This means you don’t have to pay a set security deposit interest rate on the funds you hold.

‍

{{ state }} Security Deposit Account

You are not legally required to hold funds in a specific security deposit bank account in South Dakota. However, many landlords open a separate account to hold the tenant security deposit South Dakota residents provide to avoid commingling and ensure the money is ready for a quick return and deductions when the tenant moves out.

‍

{{ state }} Security Deposit Limits

The maximum security deposit South Dakota allows is equal to one month’s rent. The average security deposit falls between $1,000 to $1,200, matching the current typical monthly rent for a one- or two-bedroom home.

‍

{{ state }} Security Deposit Interest

State law security deposit rules don’t mandate paying interest on security deposits in South Dakota. This means you don’t have to pay a set security deposit interest rate on the funds you hold.

‍

Easy to get started

Open a security deposit account for free

Create a virtual account
(aka - security deposit account)

Collect security deposits
into virtual account

Go beyond standard security deposit accounts

Collect, return, and track deposits by tenant and property, even when funds are held in external accounts.

{{ state }} deposit accounts

Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².

‍

Unlimited accounts for all entities

Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.

‍

Free online payments

Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.

‍

Automated bookkeeping

Track and tag payments to the right tenant and property — automatically.

‍

Go beyond standard security deposit accounts

Collect, return, and track deposits by tenant and property, even when funds are held in external accounts.

{{ state }} deposit accounts

Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².

‍

Unlimited accounts for all entities

Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.

‍

Free online payments

Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.

‍

Automated bookkeeping

Track and tag payments to the right tenant and property — automatically.

‍

Essentials for every door

Everything you need for every part of the rental process.

Leases
Screening
Banking
Digital lease agreement e-signing process in modern home setting

Lease creation and e-sign

Upload or create and e-sign state-specific leases online.

Free tenant screening

Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.

Property-specific accounts

Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.

Essentials for every door

Everything you need for every part of the rental process.

Leases
Screening
Banking
Digital lease agreement e-signing process in modern home setting

Lease creation and e-sign

Upload or create and e-sign state-specific leases online.

Free tenant screening

Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.

Property-specific accounts

Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.

Get started in minutes

Set up your security deposit {{ state }} account and start collecting.

Get Started
1
Sign up

Open a banking account online — no monthly account maintenance fees or minimums.

2
Create account

Create security deposit accounts that earn up to [v="apyvalue"] APY².

3
Collect deposits

Collect security deposits online via ACH or card.

Get started in minutes

Sign up and start collecting deposits in {{ state }}.

Get Started
1
Sign up

Open a banking account online — no monthly account maintenance fees or minimums.

2
Create account

Create security deposit accounts that earn up to [v="apyvalue"] APY².

3
Collect deposits

Collect security deposits online via ACH or card.

Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.

{{ state }} security deposit rules

Maximum Deposit

1 month's rent

Interest Required

No

Interest Rules
Account Requirements

No escrow account required; separate account recommended

Deductible Funds

Unpaid rent or utilities, repairs, lease violations, and cleaning costs

‍

Return Deadline

14 days

‍

{{ state }} security deposit rules

Maximum Deposit

1 month's rent

Interest Required

No

Interest Rules
Account Requirements

No escrow account required; separate account recommended

Deductible Funds

Unpaid rent or utilities, repairs, lease violations, and cleaning costs

‍

Return Deadline

14 days

‍

State Security Deposit Requirements

Alabama
Alaska
Arizona
Arkansas
California
Carolina
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

Additional resources

How to collect security deposits

How much is a security deposit
Managing security deposit deductions
Security deposit accounting
Webinar

Additional resources

How to collect security deposits

How much is a security deposit
Managing security deposit deductions
Security deposit accounting
Webinar

FAQs

How much is a security deposit in {{ state }}?

In South Dakota, Landlords can charge up to 1 month's rent, plus a reasonable amount for additional risks to the property, e.g., pets

In what other states can you use Baselane?

These are the other states where you can use Baselane:Arizona, California, Illinois, New Jersey, Texas, Virginia, and all major states in the USA.

How is the security deposit amount determined when using the Baselane service?

Tenants can cause much damage to your rental property, so you should aim to collect the largest security deposit the market will bear. One month's rent is typical in most parts of the country, but you may be able to demand more if your rental property is in a particularly hot market.Your state may set a cap on how much you can collect. Many states, including New York, Massachusetts, and Ohio, set the maximum security deposit you can collect at one month's rent. Others, including California, Pennsylvania, and Maryland, limit security deposits to 2 months' rent. There's no limit on security deposits for rentals in Indiana and Florida.

How are my personal information and funds protected when using the Baselane security deposit accounts?

When your new tenant signs the lease, you should collect the security deposit and the first month's rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you're handling your deposits appropriately.

Do I need a new security deposit agreement if my tenant switches to month-to-month rent?

If local law states a lower maximum security deposit for month-to-month leases, you may be required to refund the excess amount. Otherwise, the lease's initial terms usually apply when switching to month-to-month, and no change to the security deposit is required.

When can I collect the security deposit?

When your new tenant signs the lease, you should collect the security deposit and the first month's rent. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping, and ensure you're handling your deposits appropriately.

FAQs

How much security deposit can a landlord charge in South Dakota?

The South Dakota security deposit limit is one month’s rent. This limit includes the total of any first and last month's rent plus additional security funds you collect at move-in.

Is interest required on tenant security deposits in South Dakota?

No, South Dakota security deposit interest there is not required, as you’re not legally mandated to keep an interest-bearing landlord-tenant security deposit bank account in South Dakota.

How should I issue a security deposit receipt to tenants in South Dakota?

While South Dakota law doesn't require you to give tenants a receipt, it’s a best practice to do so. Include the security deposit amount received, the date, and the purpose of the payment.

How many days to return a security deposit in South Dakota?

Tenant security deposit South Dakota law offers a relatively shorter return window of only 14 days. shorter. If you make any deductions, add them to a list and send it to tenants, new or last known, within the same 2-week window.

What can a landlord deduct from a security deposit in South Dakota?

Landlord rights security deposit​ rules allow you to use the deposit to cover any unpaid rent, cleaning, or repairs beyond normal wear and tear. If you withhold funds without a valid reason or miss the 14-day deadline, a court could award the tenant double damages. These rules apply to a house rental, apartment, condo, or any other property type.

Can a security deposit be used for unpaid rent in South Dakota?

Yes, you can pull funds from the deposit to cover any rent the tenant failed to pay before moving out. Although you’re not required to maintain a security deposit escrow account in South Dakota, it’s recommended to keep these funds separate to make such deductions easier.

Can landlords keep a security deposit for breaking a lease in South Dakota?

If a tenant is breaking lease terms early, landlord security deposit South Dakota rules allow you to cover your financial losses, provided those damages are documented and permitted by your lease agreement.

FAQs

How much security deposit can a landlord charge in South Dakota?

The South Dakota security deposit limit is one month’s rent. This limit includes the total of any first and last month's rent plus additional security funds you collect at move-in.

Is interest required on tenant security deposits in South Dakota?

No, South Dakota security deposit interest there is not required, as you’re not legally mandated to keep an interest-bearing landlord-tenant security deposit bank account in South Dakota.

How should I issue a security deposit receipt to tenants in South Dakota?

While South Dakota law doesn't require you to give tenants a receipt, it’s a best practice to do so. Include the security deposit amount received, the date, and the purpose of the payment.

How many days to return a security deposit in South Dakota?

Tenant security deposit South Dakota law offers a relatively shorter return window of only 14 days. shorter. If you make any deductions, add them to a list and send it to tenants, new or last known, within the same 2-week window.

What can a landlord deduct from a security deposit in South Dakota?

Landlord rights security deposit​ rules allow you to use the deposit to cover any unpaid rent, cleaning, or repairs beyond normal wear and tear. If you withhold funds without a valid reason or miss the 14-day deadline, a court could award the tenant double damages. These rules apply to a house rental, apartment, condo, or any other property type.

Can a security deposit be used for unpaid rent in South Dakota?

Yes, you can pull funds from the deposit to cover any rent the tenant failed to pay before moving out. Although you’re not required to maintain a security deposit escrow account in South Dakota, it’s recommended to keep these funds separate to make such deductions easier.

Can landlords keep a security deposit for breaking a lease in South Dakota?

If a tenant is breaking lease terms early, landlord security deposit South Dakota rules allow you to cover your financial losses, provided those damages are documented and permitted by your lease agreement.

Get Your Free Rental Security Deposit Account Today

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