Rental Application and Tenant-Screening Fee Requirements in South Dakota
At a glance
| Governing law and coverage | No general statewide application/screening-fee statute after audit of SDCL chs. 43-32 and 36-21A; ch. 43-32 governs leases, while ch. 36-21A defines and licenses property managers and residential rental agents |
|---|---|
| Fees allowed or prohibited | No statewide provision specifically authorizes or prohibits residential application, processing, credit-check, background-check, or tenant-screening fees |
| Maximum charge and adjustment | No statewide numeric, actual-cost, reasonable-cost, customary-cost, per-applicant, per-household, or indexed ceiling in the audited statutes |
| Permitted costs and charge timing | No statewide fee-component, unit-availability, charge-when-considered, multiple-concurrent-application, or repeat-charge restriction |
| Before-screening disclosures | No special statewide application-fee, unit-availability, screening-criteria, report-source, dispute-right, reusable-report, or application-order disclosure |
| Receipt, report copy, and refund | No special statewide application-fee receipt, landlord-obtained-report-copy, unused-fee refund, or unconsidered-application refund rule |
| Applicant-supplied or reusable reports | No statewide applicant-supplied or reusable screening-report acceptance or no-fee procedure |
| Application order and adverse action | No statewide first-in-order, first-qualified, single-application, or state denial-reason notice process for rental applications |
| Remedies and stronger local rules | No application-fee-specific statutory damages or enforcement provision; audited statutes state no application-fee local-preemption clause |
South Dakota has no special statewide fee process
The complete current South Dakota lease-of-real-property chapter, SDCL chapter 43-32, contains no rule specifically addressing a residential application, processing, credit-check, background-check, or tenant-screening fee. The complete Real Estate Licensing chapter, SDCL chapter 36-21A, was also audited. It defines and regulates property managers and residential rental agents, but does not create a tenant-facing application-fee or screening process.
Accordingly, the audited statutes create no special statewide requirement for:
- a maximum dollar amount, actual-cost formula, or annual adjustment;
- proof that a unit is available or that an application will be considered;
- advance disclosure of the fee basis, screening criteria, or report source;
- an application-fee receipt, screening-report copy, or unused-fee refund;
- acceptance of an applicant-supplied or reusable report;
- first-in-order or first-qualified processing; or
- a state-format denial or conditional-approval notice.
This is the ordinary statewide result. A particular government-assisted or specially regulated housing program may have separate requirements outside these general statutes.
Lease and license-law boundaries
SDCL § 43-32-1 defines leasing as a contract in which a landlord gives a tenant temporary possession and use of real property for reward and the tenant agrees to return it later. Chapter 43-32 then addresses subjects such as lease terms, repairs, security deposits, termination, retaliation, entry, and service-animal documentation. Its complete current index contains no applicant or screening- fee section.
SDCL § 36-21A-10 defines property managers. SDCL § 36-21A-12.1 defines residential rental agents. Section 36-21A-132 requires a licensee representing a landlord to perform the client agreement, exercise reasonable skill and care, account for money and property received, and comply with applicable law. Those duties do not state an applicant-fee cap, receipt, report-copy, refund, reusable-report, application-order, or denial-notice rule.
What trips people up
The licensing “application fee” is not a rental application fee. SDCL § 36-21A-49 authorizes a fee accompanying an individual's application for a real-estate license. It does not regulate money collected from a prospective tenant.
The licensing background check also concerns professionals. The chapter index's criminal-background-check provision, § 36-21A-151, concerns applicants and licensees under disciplinary investigation, not tenant screening.
General money-accounting duties do not supply the missing applicant rules. A landlord's licensee must account for money and property received under § 36-21A-132, but the statute does not turn that general duty into a special application-fee receipt, refund deadline, or report-copy procedure.
Common questions
Is there a statewide maximum rental application fee? No numeric or cost- based cap appears in the current audited statutes.
Must the landlord refund the fee if another applicant rents the unit? The audited statutes create no special statewide unused-fee or unconsidered- application refund rule.
Must the landlord provide the credit or background report? The audited statutes impose no special report-copy duty tied to an application charge.
Does South Dakota require reusable screening reports? No statewide applicant-supplied or reusable-report acceptance procedure appears in the audited statutes.
Statutes and sources
- SDCL chapter 43-32 — complete current Lease of Real Property chapter
audited for applicant-fee and screening rules.
43-32-1 Leasing of real property defined. ... 43-32-6.1 Maximum security deposit for residential premises ... 43-32-24 Return of security deposit after termination of tenancy ... 43-32-32 Reasonable notice of landlord's intent to enter ...
Official source: https://sdlegislature.gov/api/Statutes/43-32.html (accessed 2026-07-21) - SDCL § 43-32-1 — lease definition.
Leasing is a contract by which one (the lessor or landlord) gives to another (the lessee or tenant) temporary possession and use of real property for reward ...
Official source: https://sdlegislature.gov/api/Statutes/43-32-1.html (accessed 2026-07-21) - SDCL §§ 36-21A-10 and 36-21A-12.1 — property-manager and residential- rental-agent definitions.
[A] residential rental agent is any person who for compensation or consideration is associated with a real estate broker or property manager to negotiate or attempt to negotiate the rental or leasing of residential property ...
Official sources: https://sdlegislature.gov/api/Statutes/36-21A-10.html and https://sdlegislature.gov/api/Statutes/36-21A-12.1.html (accessed 2026-07-21) - SDCL chapter 36-21A — complete current Real Estate Licensing chapter audited for tenant-facing application and screening rules.
36-21A-49 Application fee for individual licensure. ... 36-21A-132 Duties and obligations of licensee representing seller or landlord. ...
Official source: https://sdlegislature.gov/api/Statutes/36-21A.html (accessed 2026-07-21) - SDCL § 36-21A-49 — professional-license application fee.
This fee shall accompany an application for individual licensure.
Official source: https://sdlegislature.gov/api/Statutes/36-21A-49.html (accessed 2026-07-21) - SDCL § 36-21A-132 — duties of a licensee representing a landlord.
[A]ny licensee representing a seller or landlord has the following duties and obligations ... To account in a timely manner for all money and property received ...
Official source: https://sdlegislature.gov/api/Statutes/36-21A-132.html (accessed 2026-07-21)
Source links
Every statute quoted above, linked, with the date we checked it.
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