Renting Out Your Property in South Dakota: A Landlord's Guide
Renting out property in South Dakota requires understanding specific state laws that govern landlord-tenant relationships, security deposits, and eviction procedures. South Dakota landlords benefit from relatively landlord-friendly regulations, but must still comply with fair housing laws, proper maintenance standards, and follow specific procedures for lease terminations.
South Dakota law does not cap security deposit amounts, but landlords must return deposits within two weeks of lease termination. Failure to comply with state landlord-tenant laws could result in legal liability, financial penalties, and difficulty removing problematic tenants.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Lead-Based Paint Disclosure Form
A federally required disclosure for properties built before 1978 that informs tenants about the potential presence of lead-based paint and associated hazards.
Rental Property Business License
A license required by many local jurisdictions to legally operate a rental property business, which may involve registration, inspections, and fee payments.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Relevant Laws
South Dakota Codified Laws § 43-32-6 to 8
These laws establish the landlord's obligation to maintain the rental property in a habitable condition. Landlords must comply with building and housing codes, make necessary repairs, keep common areas clean and safe, and maintain essential services like electricity, heating, and plumbing. This is relevant to property owners as failure to maintain these standards could result in tenant remedies including termination of the lease.
South Dakota Codified Laws § 43-32-9
This statute outlines a landlord's right to access the rental property. Landlords may enter with reasonable notice (typically 24 hours) for repairs, inspections, or showing the property to prospective tenants. Understanding these access limitations is crucial for landlords to avoid privacy violations while maintaining their property.
South Dakota Codified Laws § 43-32-12
This law addresses security deposits in South Dakota. Landlords may collect a security deposit not exceeding one month's rent unless the unit is furnished or has special facilities. The deposit must be returned within two weeks of lease termination, less any deductions for damages beyond normal wear and tear. Proper handling of security deposits is essential to avoid legal disputes.
South Dakota Codified Laws § 43-32-13
This statute outlines the legal process for evictions in South Dakota. Landlords must provide proper notice (typically three days for non-payment of rent) before filing an eviction action. Understanding the eviction process is critical for landlords to legally remove problematic tenants while avoiding wrongful eviction claims.
South Dakota Codified Laws § 43-8-8
This law requires landlords to disclose known lead-based paint hazards in housing built before 1978. Property owners must provide tenants with an EPA-approved information pamphlet and any known information about lead-based paint in the dwelling. This disclosure is federally mandated and failure to comply can result in significant penalties.
Regional Variances
Eastern South Dakota
Sioux Falls has additional rental property ordinances including mandatory rental registrations and inspections. Landlords must register their rental properties with the city and undergo periodic inspections. The city also has specific requirements for smoke detectors, carbon monoxide detectors, and minimum housing standards that may exceed state requirements.
Brookings has unique rental regulations due to the presence of South Dakota State University. The city has implemented rental housing licensing and inspection programs. Additionally, there are specific occupancy limits and noise ordinances that affect rental properties, particularly in neighborhoods near the university.
Western South Dakota
Rapid City has implemented a Crime Free Multi-Housing Program that landlords can voluntarily participate in. While not mandatory, participation provides benefits including police support and training. The city also has specific ordinances related to snow removal responsibilities for rental properties that differ from other parts of the state.
Sturgis has unique short-term rental regulations due to the annual Sturgis Motorcycle Rally. Property owners who rent during the rally may face different tax obligations and permit requirements. The city also allows for temporary use permits that aren't available in other jurisdictions.
Tribal Lands
Properties located within the Pine Ridge Reservation are subject to tribal housing laws and regulations that may differ significantly from South Dakota state law. Landlords may need to work with the Oglala Sioux Tribal Housing Authority and follow tribal court procedures for evictions rather than state procedures.
Rental properties on the Cheyenne River Reservation fall under the jurisdiction of tribal housing codes and may require approval from the Tribal Housing Authority. Eviction procedures follow tribal court processes rather than state law, and there may be specific requirements for leasing to tribal members.
Suggested Compliance Checklist
Research South Dakota Landlord-Tenant Laws
1 days after startingFamiliarize yourself with South Dakota's landlord-tenant laws, particularly SDCL Chapter 43-32. Understanding these laws will help you avoid legal issues and ensure compliance. Key areas to research include security deposit limits, notice requirements, and landlord responsibilities.
Obtain Required Business Licenses
7 days after startingCheck with your local municipality in South Dakota to determine if you need a business license or permit to operate a rental property. Requirements vary by city and county. Contact your local government offices to confirm specific requirements for your area.
Register with South Dakota Department of Revenue
14 days after startingIf you'll be collecting rental income, you may need to register with the South Dakota Department of Revenue for tax purposes. This is particularly important if you'll be operating as a business entity rather than an individual landlord.
Prepare a Rental Application Form
21 days after startingCreate a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws.
Draft a Residential Lease Agreement
28 days after startingCreate a legally compliant lease agreement specific to South Dakota. Include all required terms such as names of parties, property description, rental term, rent amount and due date, security deposit information, maintenance responsibilities, and other terms specific to your property. South Dakota doesn't have many mandatory lease provisions, but your lease should be clear and comprehensive.
Create a Move-In/Move-Out Inspection Checklist
30 days after startingDevelop a detailed checklist to document the condition of the property before the tenant moves in and after they move out. This will help determine if any damage occurred during the tenancy and whether deductions from the security deposit are justified. Take photos to supplement the written checklist.
Prepare a Lead-Based Paint Disclosure Form
32 days after startingFederal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and lead-based paint hazards. You must provide tenants with an EPA-approved pamphlet on identifying and managing lead-based paint hazards and include specific disclosure language in your lease.
Create a Security Deposit Receipt
34 days after startingIn South Dakota, landlords must provide a receipt for security deposits. The receipt should include the amount received, date received, and a statement explaining that the tenant has the right to request a list of existing damages within seven days of taking possession.
Establish Landlord's Rules and Regulations
36 days after startingCreate a document outlining specific rules for your rental property beyond what's in the lease. This may include quiet hours, guest policies, maintenance expectations, parking rules, and other property-specific guidelines. Ensure these rules are reasonable and don't violate any tenant rights under South Dakota law.
Draft a Notice of Entry Form
38 days after startingSouth Dakota law requires landlords to provide reasonable notice before entering a tenant's unit. Create a form to document when and why you need to enter the property. While South Dakota doesn't specify the exact notice period, 24 hours is generally considered reasonable unless there's an emergency.
Set Up Property Insurance
45 days after startingObtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord insurance should include property damage, liability coverage, and potentially loss of rental income coverage.
Establish a System for Rent Collection
50 days after startingDecide how you'll collect rent (check, electronic payment, etc.) and set up the necessary accounts or systems. Consider using property management software to track payments and generate receipts automatically.
Create a Maintenance Request Process
55 days after startingEstablish a clear procedure for tenants to report maintenance issues and for you to respond to them. South Dakota landlords have an obligation to maintain habitable premises, so having an efficient system for addressing repairs is essential for compliance.
Understand Security Deposit Requirements
60 days after startingIn South Dakota, there is no statutory limit on security deposits, but you must return the deposit within two weeks of the tenant vacating the property. If you withhold any portion, you must provide an itemized list of deductions. Consider setting up a separate bank account for security deposits to keep these funds distinct from your operating funds.
Develop an Eviction Process Checklist
65 days after startingFamiliarize yourself with South Dakota's eviction procedures. Create a checklist to ensure you follow the proper legal steps if eviction becomes necessary. In South Dakota, you must provide proper notice (typically 3 days for nonpayment of rent) before filing an eviction lawsuit. Never attempt to evict a tenant through self-help measures like changing locks or removing belongings.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Research South Dakota Landlord-Tenant Laws | Familiarize yourself with South Dakota's landlord-tenant laws, particularly SDCL Chapter 43-32. Understanding these laws will help you avoid legal issues and ensure compliance. Key areas to research include security deposit limits, notice requirements, and landlord responsibilities. | - | 1 |
| Obtain Required Business Licenses | Check with your local municipality in South Dakota to determine if you need a business license or permit to operate a rental property. Requirements vary by city and county. Contact your local government offices to confirm specific requirements for your area. | - | 7 |
| Register with South Dakota Department of Revenue | If you'll be collecting rental income, you may need to register with the South Dakota Department of Revenue for tax purposes. This is particularly important if you'll be operating as a business entity rather than an individual landlord. | - | 14 |
| Prepare a Rental Application Form | Create a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure your screening process complies with Fair Housing laws. | Rental Application Form | 21 |
| Draft a Residential Lease Agreement | Create a legally compliant lease agreement specific to South Dakota. Include all required terms such as names of parties, property description, rental term, rent amount and due date, security deposit information, maintenance responsibilities, and other terms specific to your property. South Dakota doesn't have many mandatory lease provisions, but your lease should be clear and comprehensive. | Residential Lease Agreement | 28 |
| Create a Move-In/Move-Out Inspection Checklist | Develop a detailed checklist to document the condition of the property before the tenant moves in and after they move out. This will help determine if any damage occurred during the tenancy and whether deductions from the security deposit are justified. Take photos to supplement the written checklist. | Move-In/Move-Out Inspection Checklist | 30 |
| Prepare a Lead-Based Paint Disclosure Form | Federal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and lead-based paint hazards. You must provide tenants with an EPA-approved pamphlet on identifying and managing lead-based paint hazards and include specific disclosure language in your lease. | Lead-Based Paint Disclosure Form | 32 |
| Create a Security Deposit Receipt | In South Dakota, landlords must provide a receipt for security deposits. The receipt should include the amount received, date received, and a statement explaining that the tenant has the right to request a list of existing damages within seven days of taking possession. | Security Deposit Receipt | 34 |
| Establish Landlord's Rules and Regulations | Create a document outlining specific rules for your rental property beyond what's in the lease. This may include quiet hours, guest policies, maintenance expectations, parking rules, and other property-specific guidelines. Ensure these rules are reasonable and don't violate any tenant rights under South Dakota law. | Landlord's Rules and Regulations | 36 |
| Draft a Notice of Entry Form | South Dakota law requires landlords to provide reasonable notice before entering a tenant's unit. Create a form to document when and why you need to enter the property. While South Dakota doesn't specify the exact notice period, 24 hours is generally considered reasonable unless there's an emergency. | Notice of Entry Form | 38 |
| Set Up Property Insurance | Obtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord insurance should include property damage, liability coverage, and potentially loss of rental income coverage. | - | 45 |
| Establish a System for Rent Collection | Decide how you'll collect rent (check, electronic payment, etc.) and set up the necessary accounts or systems. Consider using property management software to track payments and generate receipts automatically. | - | 50 |
| Create a Maintenance Request Process | Establish a clear procedure for tenants to report maintenance issues and for you to respond to them. South Dakota landlords have an obligation to maintain habitable premises, so having an efficient system for addressing repairs is essential for compliance. | - | 55 |
| Understand Security Deposit Requirements | In South Dakota, there is no statutory limit on security deposits, but you must return the deposit within two weeks of the tenant vacating the property. If you withhold any portion, you must provide an itemized list of deductions. Consider setting up a separate bank account for security deposits to keep these funds distinct from your operating funds. | - | 60 |
| Develop an Eviction Process Checklist | Familiarize yourself with South Dakota's eviction procedures. Create a checklist to ensure you follow the proper legal steps if eviction becomes necessary. In South Dakota, you must provide proper notice (typically 3 days for nonpayment of rent) before filing an eviction lawsuit. Never attempt to evict a tenant through self-help measures like changing locks or removing belongings. | - | 65 |
Frequently Asked Questions
In South Dakota, landlords must ensure their rental property meets basic habitability standards, including working plumbing, heating, electricity, and structural safety. You should have a written lease agreement (though verbal agreements are legally binding), obtain any necessary local permits or licenses, and comply with fair housing laws which prohibit discrimination based on protected characteristics. Consider purchasing landlord insurance to protect your investment.
South Dakota does not set a statutory limit on security deposit amounts, giving landlords flexibility in determining appropriate amounts. However, security deposits must be returned within two weeks (14 days) after the tenant vacates the property, minus any legitimate deductions for damages beyond normal wear and tear. It's advisable to document the property's condition before and after tenancy with photos or videos to avoid disputes.
For month-to-month tenancies in South Dakota, landlords must provide at least one month's notice before increasing rent or terminating the tenancy without cause. For fixed-term leases, rent cannot be increased until the lease term ends unless the lease specifically allows for it. When terminating for lease violations, landlords must generally provide a 3-day notice for non-payment of rent or a 30-day notice for other lease violations.
South Dakota landlords are responsible for maintaining the property in a habitable condition, including structural elements, plumbing, heating, electrical systems, and common areas. You must make all necessary repairs in a reasonable timeframe when notified of issues. While tenants are responsible for routine cleanliness and minor maintenance, landlords cannot shift major maintenance responsibilities to tenants through lease provisions.
No. While South Dakota law doesn't specify exact notice requirements for landlord entry, landlords are expected to provide reasonable notice (typically 24 hours) before entering a tenant's unit for non-emergency matters like inspections or repairs. You should include entry provisions in your lease agreement. Entering without proper notice or legitimate reason could constitute illegal trespass or harassment.
South Dakota evictions require following specific legal procedures. First, serve the tenant with proper written notice (3 days for non-payment, longer for other violations). If the tenant doesn't comply, file an eviction lawsuit (forcible entry and detainer action) with the court. After winning the case, only a sheriff can physically remove tenants. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal and can result in liability for the landlord.
South Dakota landlords must disclose known lead-based paint hazards for properties built before 1978 (federal requirement). Additionally, you should disclose any known material defects affecting habitability, the presence of mold or environmental hazards, and provide information about who is authorized to act on the landlord's behalf. While not explicitly required by state law, it's advisable to disclose any history of flooding, pest infestations, or criminal activity on the property.
You can generally refuse to rent to tenants with pets (except for service or assistance animals, which are not considered pets under fair housing laws). However, you cannot refuse to rent to families with children, as familial status is a protected class under federal fair housing laws. Doing so would constitute illegal discrimination. Other protected classes include race, color, national origin, religion, sex, and disability.
Rental income must be reported on your federal and South Dakota state tax returns. However, you can deduct many expenses including mortgage interest, property taxes, insurance, maintenance, repairs, utilities you pay, and depreciation of the property. Keep detailed records of all income and expenses. Consider consulting with a tax professional familiar with rental property taxation, as rental activities may also be subject to self-employment taxes depending on the services you provide.
Whether to hire a property manager depends on several factors. Consider hiring one if you live far from the property, lack time to handle tenant issues, are unfamiliar with landlord-tenant laws, or own multiple properties. Property managers typically charge 8-12% of monthly rent in South Dakota. They handle tenant screening, rent collection, maintenance coordination, and legal compliance, but you'll have less direct control and additional expenses.