South Dakota Bans Local Rent Control

SDCL 6-1-13 provides that "No local governmental unit may enact, maintain, or enforce any ordinance, resolution, or other enactment that would have the effect of controlling the amount of rent charged for leasing private residential property." The only carve-out is that the section "does not impair the right of any local governmental unit to manage and control residential property in which the local governmental unit has a property interest." Enacted in 1990, this is a clear statewide preemption of municipal rent control over private rentals. South Dakota imposes no statewide cap on rent or rent increases, so for private property a landlord may raise rent by any amount at lease renewal, subject only to the notice required to end or change a periodic tenancy. Because no local unit may enact rent control, no South Dakota city has it.

Any city or county ordinance limiting rent on private residential property violates SDCL 6-1-13 and exceeds the local unit's authority, so a court could strike it down. The statute sets no fine because a preempted measure simply has no legal effect.