South Dakota Rent Increase Laws

Is there a rent increase limit in South Dakota? 

First, here’s a quick review of South Dakota rent control laws:

Statewide caps: While states such as Oregon set strict limits (Or. Rev. Stat. § 90.323), South Dakota law allows landlords to set their own prices. As a result, most rental owners use the market rate to determine a reasonable increase based on their property’s size, features, and local demand.

Local rent control ordinances: Additionally, no city, county, or local government currently enforces rent control.

Exceptions: South Dakota law doesn’t exempt property types, such as new builds, from federal housing programs.

Rent Increase Notice Periods

If you’re going to raise rent at the end of a rental period, you must notify tenants in writing. However, the legal requirements vary depending on the type of lease agreement you’re using.

Fixed-Term Lease

South Dakota rent increase laws don’t mandate notice for fixed-term leases. But you should still give tenants ample warning to maintain a positive relationship.

And remember, you can’t increase rent mid-tenancy unless your lease specifically allows it. Wait until the contract ends to propose a new price when discussing a renewal.

Month-to-Month Lease

On the other hand, state law sets clear rules for month-to-month agreements. Landlords must give tenants at will at least 30 days’ written notice before increasing rent (S.D. Codified L. § 43-32-13).

Room Rental Agreements

If you have a month-to-month room rental agreement, provide at least 30 days’ written notice (S.D. Codified L. § 43-32-13). We recommend doing the same for fixed-term arrangements as well.

How to Deliver a Rent Increase Notice in South Dakota

When informing tenants about an upcoming change to their rent, you can’t just call and leave them a voicemail. Instead, use the following methods to serve an official notice in South Dakota:

• Hand-deliver the letter to the tenant.
• Drop the notice off with someone of suitable age at the property.
• Send the letter via Certified Mail.
• Post the letter on the unit’s front door.

If you plan to send the notice digitally, make sure you outline the process in your lease and have tenants agree in writing. Otherwise, courts may not recognize the notice as legally binding.

Keep in Mind: In South Dakota, allow additional time for delivery when you mail notices. We recommend adding 3 days to your timeline.

Understanding Illegal Rent Increase and Retaliation

South Dakota rent increase laws prohibit landlords from retaliating against tenants. You can’t raise a tenant’s rent to punish them for complaining about housing violations or exercising their legal rights (S.D. Codified L. § 43-32-27).

Beyond retaliation, you can’t discriminate against tenants, either. The Fair Housing Act (FHA) bans unequal rental terms and discriminatory rate increases based on federally-protected characteristics, including:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

All in all, keep your pricing method consistent across all tenants. Never consider FHA-protected traits when making a decision, and don’t attempt a mid-tenancy increase unless you have a clause permitting it. Otherwise, you could face legal penalties, court costs, and damage to your reputation as a landlord.

How to Write a South Dakota-Compliant Rent Increase Letter

Make sure to include the following items in your South Dakota rent increase letter:

• Full property address (including unit number, if applicable)
• Tenant names
• Exact dollar amount of the increase
• New total rent amount
• Effective date

Finish the letter with instructions for tenants on how to accept the offer or opt out.

Save time and avoid manual admin work by downloading our free standardized template. Top landlords use TurboTenant’s rent increase letter template to stay consistent, compliant, and worry-free.

Managing the Rent Increase Process with Tenants

Once you send your rent increase letter, tenants can either accept the proposal, move out, or negotiate the increase. Here’s what to do in each situation:

• Accept: Draft the updated lease agreement detailing the new rent price and ask your tenant to sign it. Then, start charging the new rate on the effective date.
• Move out: By refusing your price, tenants opt to terminate the agreement and move out at the end of their lease. Once tenants tell you they don’t plan to move forward, get ready to re-rent the unit. The faster you secure your next tenant, the less income you lose.
• Negotiate: If responsible, trustworthy tenants ask to discuss the price, consider compromising where it makes sense. Remember, you don’t always have to budge on the price point. As an alternative, try offering a phased rent adjustment or a longer lease term.

We hope this guide helps you understand the rules governing rent increases in South Dakota. Follow the best practices outlined in this guide to mitigate legal risk and maintain a profitable, happy-tenant business.