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A South Dakota residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.
These disclosures are required for some or all residential lease agreements in South Dakota:
| Disclosure | Applicable To |
|---|---|
| Methamphetamine Contamination Disclosure | Units with Potential Contamination |
| Lead-Based Paint Disclosure | All Units Built Before 1978 |
Applicable to any South Dakota rental where the landlord is aware of potential methamphetamine contamination.
South Dakota landlords with any knowledge relating to methamphetamine contamination on the rental property must disclose this in the rental agreement. If there are two or more housing units on the same property, only units with known contamination are subject to a disclosure requirement. [1]
This is an example of a contamination disclosure clause:
Methamphetamine contamination can be dangerous to Tenant(s) in high concentrations, presenting health concerns through absorption of the materials in the air.
This property:
[ ] Has been found to be contaminated above safe levels and is in the process of decontamination.
[ ] Has been found to be contaminated, but falls within safe levels after tests were conducted.
[ ] Has no suspicion of contamination
Applicable to any South Dakota rental units built before 1978.
For any property built before 1978, federal law requires that a South Dakota residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:
The following lease agreement disclosures and addenda are not required by South Dakota law in residential lease agreements, but assist with tenant management and help limit landlord liability.
| Optional Disclosure | Purpose |
|---|---|
| Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers. |
| Bed Bugs | Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately. |
| Landlord’s Name and Address | Specifies the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice. |
| Late/Returned Check Fees | Specifies late fees or returned check fees related to the lease. South Dakota does not regulate late fees, but returned check fees are capped at $40 per check. [2] |
| Medical Marijuana Use | Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas. |
| Mold Disclosure | Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability. |
| Move-In Checklist | Takes inventory of existing property damage, when the tenant takes possession of the rental property. This enables accurate deductions from the security deposit upon move-out. |
| Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable upon lease termination. For South Dakota landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
| Shared Utilities Arrangements | Discloses how charges are billed to individual tenants, when multiple rental units share a utility meter for the whole building or property. This ensures tenants receive fair charges and understand what uses contribute to their bill. |
| Smoking | Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants. |
Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials.
Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.
…43-32-30. Disclosure of knowledge of existence of prior manufacturing of methamphetamines. In any hiring of a residential premises, any lessor who has actual knowledge of the existence of any prior manufacturing of methamphetamines on the premises shall disclose that information to any lessee or any person who may become a lessee. If the residential premises consists of two or more housing units, the disclosure requirements provided by this section only apply to the unit where there is knowledge of the existence of any prior manufacturing of methamphetamines…
…The costs and expenses provided for in this section are reasonable if they do not exceed forty dollars plus any applicable sales tax…
How Long Can a Residential Lease Be in South Dakota? Depending on circumstances, in South Dakota it’s usually possible to have a lease of any length of time, as long as the length of the lease term is specific and agreed in writing by the landlord and tenant. Oral leases can almost never be for a term of more than one year. Read more » Is a Contract to Lease Binding in South Dakota? Yes, a contract to lease is legally binding in South Dakota. To be valid, a contract to lease may have to be written, especially for a fixed term over one year. Oral leases may be valid in some cases (especially when both parties later behave as though there’s an enforceable oral lease), but often have strict limitations on enforceability for things like length of the lease term. Read more » Do Lease Agreements Need to Be Notarized in South Dakota? No, lease agreements do not need to be notarized in South Dakota. A notary helps establish the identity of the people signing the lease, if there’s a claim of fraud, but a notary isn’t necessary for a lease to be valid. Read more » Can a Lease Automatically Renew in South Dakota? Yes, a lease can automatically renew in South Dakota. Most rental agreements will automatically renew when the initial tenancy period is over. Renewal is normally for the same term as the original lease, up to one year, with the same basic terms and conditions. Landlords and tenants who prefer to arrange otherwise may modify how renewal works by agreement in the lease. Read more »
