City of Sioux Falls Updates Requirements for Residential Rentals

Published on January 17, 2024

Sioux Falls, South Dakota: Changes to the City’s residential registration process are here: the City of Sioux Falls now requires all long- and short-term residential rental units in the city to be permitted. The new permit program replaces the City’s previous rental registration process. All property owners and managers, regardless of their registration status under the previous process, need to obtain a permit under the new program.

Residential rentals apply to any property being rented long-term as a place to live or as a short-term rental unit. The new permit program requires property managers or owners to provide and maintain contact information, attend a two-hour training, and eventually pay a permit fee, which will be instituted later this year. Residents will now be able to look up residential rentals in their neighborhoods via the Neighborhood Connect feature on the City’s website.

Changes to the rental registration process were made last fall by the Sioux Falls City Council and went into effect on January 1, 2024.

“The transition to the new permit process creates clear, straightforward guidance and improves communication between the City, the public, and the residential rental industry stakeholders, like property owners and managers,” said Kevin Smith, the City’s assistant director of Planning and Development Services. “The City appreciates the commitment of the residential rental industry as we work together to ensure our residents have access to safe, secure, and affordable housing. We are here to help make this transition as seamless as possible for everyone.”

The new permit process requires property owners and managers to obtain two hours of training approved by the City. Two training options are currently available: an online option hosted by the South Dakota Multi-Housing Association (SDMHA) and an in-person option hosted by the City Attorney’s Office and Planning and Development Services teams. Permit applicants need to only attend one of those options. A certificate will be provided following training completion, and the certificate needs to be uploaded as part of the permit application.

Property owners and managers licensed as brokers, broker associates, property managers, or residential rental agents with the South Dakota Real Estate Commission are exempt from the training requirement.

“The training requirement allows the City and industry to conduct proactive education on important property management topics, like landlord/tenant relations, common code enforcement and property maintenance issues and best practices, and tenant rights,” Smith said.

There is no permit fee from now until July 1, 2024. After July 1, 2024, there will be a $50 permit fee per address of each residential rental building or structure.

For information on what qualifies as a long- or short-term rental, frequently asked questions, and other program details, visit www.siouxfalls.gov/residentialrentalpermit.

 

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