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South Dakota: Rental Application and Tenant-Screening Fee Requirements

verified against the statute 2026-07-21 7 statute sources

The short answer

South Dakota has no general statewide statute that specifically caps or regulates a residential rental-application, processing, credit-check, background-check, or tenant-screening fee. The current lease-of-real-property chapter and real-estate licensing chapter do not create special applicant disclosures, receipts, report copies, refunds, reusable-report acceptance, application order, or denial notices. Application terms and generally applicable law may still matter, but South Dakota supplies no dedicated statewide screening-fee process.

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This is the general rule in South Dakota. Ezel applies current South Dakota law to your specific facts and answers with citations to the statutes.

Governing law and coverageNo 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 prohibitedNo statewide provision specifically authorizes or prohibits residential application, processing, credit-check, background-check, or tenant-screening fees
Maximum charge and adjustmentNo statewide numeric, actual-cost, reasonable-cost, customary-cost, per-applicant, per-household, or indexed ceiling in the audited statutes
Permitted costs and charge timingNo statewide fee-component, unit-availability, charge-when-considered, multiple-concurrent-application, or repeat-charge restriction
Before-screening disclosuresNo special statewide application-fee, unit-availability, screening-criteria, report-source, dispute-right, reusable-report, or application-order disclosure
Receipt, report copy, and refundNo special statewide application-fee receipt, landlord-obtained-report-copy, unused-fee refund, or unconsidered-application refund rule
Applicant-supplied or reusable reportsNo statewide applicant-supplied or reusable screening-report acceptance or no-fee procedure
Application order and adverse actionNo statewide first-in-order, first-qualified, single-application, or state denial-reason notice process for rental applications
Remedies and stronger local rulesNo application-fee-specific statutory damages or enforcement provision; audited statutes state no application-fee local-preemption clause

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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.

SDCL § 43-32-1 · accessed 2026-07-21
SDCL § 36-21A-10 · accessed 2026-07-21
SDCL § 36-21A-12.1 · accessed 2026-07-21
SDCL § 36-21A-49 · accessed 2026-07-21
SDCL § 36-21A-132 · accessed 2026-07-21
This page is general legal information about South Dakota residential rental-application and tenant-screening charges, not legal advice about a particular application, report, denial, landlord, manager, agent, or property. South Dakota has no general statewide screening-fee statute, so the result can depend on application language, representations and conduct, the housing category or program, generally applicable contract and consumer law, and city or county law. It does not cover security or holding deposits, broker commissions, recurring tenancy fees, or whether a landlord's substantive credit, criminal-record, eviction-record, income, or other screening criterion is lawful. Federal consumer-reporting and fair-housing duties may apply in addition to South Dakota law. Verified against the official current statute text on the date shown; confirm current state, program, and local rules or consult a licensed South Dakota attorney before collecting, paying, or disputing a charge.

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