A South Dakota sublease agreement sets clear terms that let a current tenant bring in a new renter while keeping the original lease obligations intact. This agreement supports a smooth transition between tenants, keeps the incoming party aligned with the primary lease, and ensures lawful renting for property owners.
Does a tenant need a landlord’s permission to sublease in South Dakota?
South Dakota law does not include a statute that governs subleasing, so the lease controls whether a tenant may sublease. A tenant needs the landlord’s approval when the lease bars subleasing or requires written consent for any new occupant.
Landlords set clearer expectations by outlining subleasing rules in their South Dakota lease agreement, which tenants must follow. To address subleasing in future leases, property owners should consider using a legally reviewed lease agreement builder to prepare each document.
Information to Include in a South Dakota Sublease
Landlords benefit when they treat subleases the same way they treat full leases, as consistent terms create clearer expectations for everyone involved. Below is the key information landlords should include within a South Dakota sublease:
Names of landlord and sublessor: List the full legal names of the landlord and the sublessor so everyone knows who is responsible for the rental arrangement.
Rental unit address: Provide the unit’s complete address to confirm the exact space covered under the sublease.
Length of the sublease agreement: Include clear start and end dates so each party understands the duration of the sublease term.
Rent amount: Note the monthly rent the sublessor collects from the subtenant and specify when each payment comes due.
Division of utilities: Detail how the parties share costs such as electricity, water, and internet, and attach a landlord-tenant utility agreement to support those terms.
Security deposit information: Describe the amount collected and how the sublessor handles the funds, and reference the security deposit laws in South Dakota to guide proper management.
Maintenance protocols: Describe how the subtenant reports repair needs and outline the standards that guide upkeep, supported by guidance on rental property maintenance.
Property policies: Summarize everyday rules on noise, guests, parking, and other expectations that help keep the rental orderly.
Early termination terms: Clarify the circumstances under which either party may terminate the sublease and note any fees or notice requirements that apply.
Landlord’s right to entry: Explain when the landlord may enter the rental property and detail the notice needed for lawful access.
Renter’s insurance: State whether the subtenant must carry insurance and describe the coverage that protects the rental and personal belongings.
Landlord’s consent to sublease: Include a direct statement of consent from the landlord that confirms approval of the sublease and its terms.
Subtenant’s obligation to comply with the master lease: State that the subtenant agrees to comply with all rules in the master lease so that the rental remains compliant and expectations remain clear.
Move-in condition checklist: Use a detailed checklist and attach a move-in condition report to document the unit’s condition at the start of the sublease.
Emergency contact information: List dependable contact details for urgent situations so the landlord and sublessor can respond quickly when issues arise.
Guest policy: Clarify limits on guest stays and outline any approval requirements to prevent disruptions or overcrowding.
Copy of the master lease: Provide a full copy of the original lease so the subtenant understands all the rules governing the rental.
Signatures: Gather signatures from the landlord, sublessor, and subtenant, and allow them to complete them via an e-signature option for convenience.
Additional attachments: Add any other documents that support clarity, such as pet guidelines, parking instructions, or HOA rules.
Taxes Implications for Short-Term Subleases
If a sublease operates like a short-term rental in South Dakota, the landlord or sublessor may need to collect state and local lodging or sales taxes from the subtenant. The state treats any stay of fewer than 28 consecutive days as a short-term rental. Tax rates include a 4.5% state sales tax, and many municipalities add lodging, tourism, or occupancy taxes on top of that.
Landlords should review local short-term lodging tax rules, as requirements and rates vary across South Dakota.
For example, in Sioux Falls, taxes may include:
- South Dakota State Sales Tax – 4.5%
- Municipal Sales Tax – 2%
- Municipal Gross Receipts Tax – 1%
- Tourism Tax – 1.5%
