Short-Term Rentals in Sioux Falls, SD

If you live in Sioux Falls or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Sioux Falls has 4 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.

Repeat Violator Strikes

Sioux Falls suspends a short-term rental permit after two code violations with citations and fines in one year, until the owner submits a corrective plan.

Key details: Suspension trigger: 2 violations w/ fines in 1 year. Revocation trigger: 4th violation within 3 years. Lift condition: Director-approved corrective plan. Enforcing office: Planning & Development Services.

Two violations with citations/fines in 1 year triggers suspension; four violations in 3 years can mean revocation.

This is not one of those rules that cities tend to ignore. Sioux Falls actively enforces its repeat violator strikes requirements.

Taxes & Fees

Short-term rental units in Sioux Falls need a $50 residential rental permit and must show a state sales tax license before renting.

Key details: Permit fee: $50 (since July 1, 2024). Governing section: Sioux Falls Code § 150.177. STR definition threshold: rented >14 days/year, unhosted. Also required: state sales tax license, state lodging license.

Renting without the permit is subject to the general penalty under Sioux Falls Code § 10.999; the city can also deny or suspend a permit after repeated health, nuisance, or code violations.

Host Presence Rule

Sioux Falls short-term rentals don't require the owner or a manager on-site: city code defines a short-term rental unit as one rented out in its entirety that is 'not occupied by an owner or manager during the time of rental.'

Key details: Host presence required?: No: code defines STRs as unhosted. Permit fee: $50 residential rental permit. Course requirement: 2-hour approved course before permit. Guest notice: Posted emergency contacts required inside unit. Enforcing agency: Planning and Development Services Dept..

Operating an unpermitted short-term rental is subject to the penalty provisions of § 10.999; the city may also suspend or revoke the rental permit after repeated health, nuisance, or code violations.

Short-Term Rental Permits

Sioux Falls requires every short-term rental to hold a city residential rental permit before it can be advertised or occupied, with a $50 fee.

Key details: Permit fee: $50 (since July 1, 2024). Owner course: 2 hours, city-approved. Extra licenses: State sales tax + lodging license. Change notice: 30 days to update application.

Operating, advertising, or leasing an unpermitted unit is subject to the general penalty under § 10.999; permits can also be suspended after two health, nuisance, or code violations with fines in the prior year.

The Bottom Line

Sioux Falls's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Sioux Falls is broadly strict or permissive.

Keep in mind that Sioux Falls can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.