South Dakota maintains a landlord-friendly rental market with no rent control or caps on increase amounts or frequency.
Landlords must provide at least 30 days’ written notice for hikes in month-to-month tenancies, while fixed-term leases bar changes mid-term unless specified. Tenants gain protections against discriminatory or retaliatory raises, empowering challenges to unfair practices.
Notice Requirements
For month-to-month leases, written notice of 30 days precedes any rent adjustment, per S.D. Codified Laws § 43-32-13. Fixed-term agreements, like one-year leases, lock rates until expiration; renewal proposals can include hikes with 30 days’ notice before term end.
Failure to notify properly lets tenants reject the new rate until compliant. Verbal notices don’t count—everything must be documented.
No Limits on Amount or Frequency
Landlords can raise rent by any percentage—5%, 20%, or more—as market demands, with no annual caps or justification needed. Increases can occur monthly in month-to-month setups, provided notice is given each time. Lease terms alone restrict timing, not scale.
This flexibility reflects South Dakota’s free-market stance, contrasting rent-stabilized states.
Prohibited Increases
Raises are illegal if retaliatory—within 180 days of tenant complaints about habitability, repairs, or rights exercises—or discriminatory under the Fair Housing Act (race, gender, disability, etc.). Hikes to dodge maintenance violate implied warranty of habitability.
Tenants proving retaliation may sue for damages or terminate early.
Tenant Rights and Recourse
Upon notice, tenants can negotiate, renew at new rates, or terminate: month-to-month with 15 days’ written notice post-hike alert; fixed-term by not renewing. Small claims court handles disputes over unfairness, using comps for “above market” claims in retaliation .
Document everything—emails, photos of issues—to build cases.
| Scenario | Notice Needed | Can Increase? | Tenant Option |
|---|---|---|---|
| Mid-Fixed Lease | N/A | No (unless allowed) | None |
| Month-to-Month | 30 days | Yes, any amount | Terminate w/15 days |
| Lease Renewal | 30 days pre-end | Yes | Renew or leave |
| Retaliatory | Any | Illegal | Sue/challenge |
Practical Tips for 2026
Shop comps on sites like Zillow for negotiation leverage; rising Sioux Falls rates average 5-8% yearly but vary. Join tenant groups for alerts. No 2026 changes noted—verify via sdlegislature.gov.
Landlords risk vacancies with steep hikes; communication fosters retention. Stay informed to protect housing stability in the Mount Rushmore State.
SOURCES :
- https://ipropertymanagement.com/laws/south-dakota-rent-increases
- https://www.steadily.com/blog/how-much-can-a-landlord-raise-rent-in-south-dakota
