It’s a simple process - you sign a lease with a tenant, then you start collecting rent. Or, so you hope. If you’ve done your homework and found the perfect tenant you should expect to collect rent in a timely fashion, every month. Since that doesn’t always happen you’ll need to know the specifics of rent collection in South Dakota.
Time to pay
To begin with, rent is due on the first business day of the month and late if not received by the fifth day. Be aware that South Dakota real property law contains a provision that states rent is due at the end of the month if not otherwise stated in the lease.
Fees
There are two fees associated with rent collection that can be charged by the landlord:
Late Fee
South Dakota has no statute on the amount of the late fee, but in order to charge a late fee it must be stated in the written lease agreement.
NSF Fee
Landlords can charge a returned check fee up to $40, as per SDCL 57A-3-421.
Rent changes
Of course, the landlord can not change the rent amount during the term of the agreement, but a change in rent can be made with notice to the tenant after the agreement term ends. A landlord may change the rent amount, or other agreement terms, for a tenancy after the initial agreement term by giving written notice to the tenant 30 days prior to the end of the agreement term. If the tenant becomes a holdover or month-to-month tenant, landlord is allowed to change the rent amount or other agreement terms by again providing 30 days’ written notice to tenant. Should a tenant with a month-to-month tenancy wish to terminate the rental agreement after receiving written notification of a rent change, SDCL § 43-32-13 stipulates that the tenant must give landlord notice of such termination within 15 days of their receipt of the notice of modification.