Residential Rental Permit

As of January 1, 2024, all property owners and managers of long- and short-term residential rental units need to obtain a permit from the City of Sioux Falls regardless of their registration status under the City’s previous residential registration process.

Owners using property as long- and short-term housing rentals must get a permit from the City. Residential rental units include any building, structure, and land it occupies that is rented as a place to live or used as a short-term rental unit.

Short-term rentals are any home, cabin or similar building that is rented, leased, or furnished in its entirety to the public on a daily or weekly basis for more than 14 days in a calendar year and is not occupied by an owner or manager during the time of rental. This does not include a bed and breakfast establishment (as defined by ordinance 160.005).

The permit requirement does not apply to properties that qualify as on-campus housing, hospitals, nursing homes, or motels.

Permit Requirements

To obtain a permit, individuals must provide the following:

Property owner’s name, email, mailing address, and phone number.
If owner resides more than 50 miles from Sioux Falls (city limits), provide a separate contact (name, email, phone number, mailing address) who does live within 50 miles and is able to provide or approve property upkeep.
Street address of the residential rental unit.
The number and type of units (examples: apartment, duplex, three sleeping rooms, a single-family house, etc.).
The name, mailing address, email, phone number, and license number of the individual licensed as a broker, broker associate, property manager, or residential rental agent with the South Dakota Real Estate Commission who manages the residential rental unit (if applicable).
$50 permit fee per address after July 1, 2024.
Verification of completion of the required two hours of course curriculum, or proof of licensure through the South Dakota Real Estate Commission as a broker, broker associate, property manager, or residential rental agent.
Proof of a state sales tax license for any applicant permitting a short-term rental unit. Proof of a state health department lodging license and any other state license required by law.
Any change in application information must be submitted in writing within 30 calendar days.

Log in to Customer Self Service (CSS) for an application template and guidance on applying for multiple rental addresses.

Online Application (CSS)

Training

A minimum two-hour training is required to obtain a residential rental permit. This can be taken online. See FAQs for training exemptions.

Online Training

Neighborhood Connect

Neighborhood Connect allows residents of Sioux Falls to access information on various City of Sioux Falls applications within your neighborhood or the City as a whole, including locations of permitted long- and short-term residential rental units.

Neighborhood Connect

FAQS

When should I get a permit for my rental(s)?

A residential rental permit, for long- and short-term rental units, must be issued before any advertisement, soliciting, or occupancy by a renter of a property unit. A permit is required per rental street address.

How often do properties need to be registered as rentals?

Once, unless ownership or contacts are updated. Written notice of property ownership or management transfers should be provided to the City within 30 days of the change.

How much does a residential rental permit cost?

Beginning July 1, 2024, the permit fee will be $50 per address. The fee is waived for any new construction property that receives a permit prior to tenant occupancy.

Who needs to complete the required training?

The permit applicant must attend a minimum of two hours of one-time training and will receive a certificate upon completion. The certificate needs to be submitted as part of the permit application. If the applicant’s property will be managed by any individual licensed as a broker, broker associate, property manager, or residential rental agent with the South Dakota Real Estate Commission, they are exempt from training and need to provide their license number with the permit application.

What if I need to transfer a property?

To transfer a permit for a residential rental unit from one owner, owner’s contact person(s), or management company to another, the applicant needs to provide written notice of the transfer, including the name and address of the transferee, to the City within 30 days after the transfer. There is no fee associated with a permit transfer if the applicant provides written notice.

Are there specific requirements for short-term residential rentals?

Yes. If you plan to own and/or operate a short-term rental, you must obtain a license from the South Dakota Department of Health. Additional information regarding the requirements can be found on the State’s website here: Lodging Licensure and Codes | South Dakota Department of Health (sd.gov)

Additionally, all short-term rental units need to provide their guests with a document that includes the following information:

Emergency phone number for the property owner or their contact person
Emergency and non-emergency phone numbers for the City of Sioux Falls
Physical address of the short-term rental unit
A statement that: “Guests are expected to be courteous to all neighbors and to respect property boundaries.
Any additional information deemed necessary by the director of the City’s Planning and Development Services department

Can my permit be revoked?

Yes. Permits can be revoked when the city issues a fourth health, nuisance or other violation when the permit holder has been subject to three health, nuisance or other code violations resulting in citations and fines payable to the city within the previous three calendar years (excluding snow and/or tree tickets). If a permit is revoked the city will provide reasonable opportunity for the owner to correct the code issue. Appeals go through an independent hearing examiner after written notice-of-appeal is provided within 15 days after decision to revoke the rental permit, along with a $50 processing fee. (See 30.40 (b) for details about what needs to be included in the appeal request).

Once revoked, a renewal permit will be issued only after all code violations have been corrected and approved by city inspection and all citations paid.

Property defects in violation of city ordinances may lead to revocation or suspension of a rental permit. The property may also be barred from being operated as a residential unit through other legal means.

Reissuing a permit for residential rental does not provide approval for any violations or issues that are active at the time of permitting.