With latest versions of DS3.1 you can enable the buildin-sftp server by changing the sftp section in the config file /etc/ssh/sshd_config to that shown below. After the config change you must disable/reenable the ssh deamon or reboot your DS, so the config change is loaded by sshd!
# override default of no subsystems #Subsystem sftp /usr/libexec/sftp-server Subsystem sftp internal-sftp
After that you can login with the sftp protocol, no other changes required.