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South Dakota Sublease Agreement

A South Dakota sublease agreement is a legal document that allows a current tenant (referred to as the “Sublessor”) to rent out all or a portion of their rental property to a new tenant (the “Sublessee”). This agreement is essential for establishing the terms of the rental arrangement and ensuring that both parties understand their rights and responsibilities.

South Dakota Sublease Agreement

South Dakota Sublease Agreement

Right to Sublet

In South Dakota, tenants must obtain explicit written consent from their landlord before subleasing their unit. The original lease agreement will dictate whether subleasing is permitted. If the lease does not explicitly allow or prohibit subleasing, tenants should consult their landlord prior to proceeding. Even after obtaining consent, landlords retain the right to reject a subtenant based on legal criteria, such as rental history or creditworthiness. Discriminatory rejections violate state law as outlined in SD Codified Laws § 20-13-20.

Standardized South Dakota Sublease Agreements

A typical South Dakota sublease agreement includes several key components:

  • Names of the Parties: Identification of the Sublessor and Sublessee.
  • Term: The start and end dates of the sublease.
  • Rent: The amount of rent, payment schedule, and payment method.
  • Rental Unit Location: The address of the rental unit as stated in the master lease.
  • Master Lease Inclusion: A copy of the master lease attached to the sublease, with any exceptions clearly stated.
  • General Conditions: A statement that the sublease contains all agreements and can only be modified in writing.
  • Disputes: Procedures for resolving disputes, potentially including mediation or arbitration.
  • Liability: Responsibilities for damages between Sublessor and Sublessee.
  • Authorized Occupants: Identification of tenants and guests allowed in the rental unit.
  • Lead-Based Paint Notice: Required notice if the property was built before 1978.
  • Security Deposit: Information on the security deposit, which is limited to one month’s rent unless otherwise agreed.
  • Pet Deposit: Provisions for an additional pet deposit, excluding service animals.
  • Return of Security Deposit: The security deposit must be returned within 14 days after the lease ends, following the provision of a forwarding address.
  • Inventory of Included Items: A list of items included in the rental.
  • Utilities: Specification of which utilities are paid by the Sublessee and Sublessor.
  • Parking Policy: Parking arrangements and any associated fees.
  • Smoking Policy: Restrictions on smoking within the rental unit.
  • Landlord’s Consent: Description of how landlord consent is obtained, if not already included in the master lease.
  • Signature: Signatures and dates for all parties involved.

Tax Implications of a Sublease

In South Dakota, sublessors may be subject to state and local taxes if they sublet a property for fewer than 28 days. The applicable tax rates include:

  • State Sales Tax: 4.2%
  • State Tourism Tax: 1.5%
  • Municipal Gross Receipts Tax: 1% (in addition to municipal sales tax)
  • Municipal Sales Tax: Up to 2%
  • Room Occupancy and Business Improvement District Fees: May be imposed by some cities.

The tourism tax on lodging applies year-round, and the frequency for filing state sales tax can be monthly, quarterly, or yearly. Tax returns are due on the 20th of each month. Payments can be made to the South Dakota Department of Revenue, and hosting platforms may include taxes in the reservation price.

Statutes

FAQs

Yes, in South Dakota, tenants must obtain explicit written consent from their landlord before subletting their unit. Even if the original lease does not explicitly prohibit subleasing, it’s advisable to inform the landlord to avoid any potential issues.

A South Dakota sublease agreement should include the names of the parties, the term of the sublease, rent details, the rental unit’s location, and a copy of the master lease. It should also outline conditions regarding liability, authorized occupants, security deposits, and any specific policies such as smoking and parking.

Short-term rentals in South Dakota, defined as stays of fewer than 28 days, are subject to state sales tax (4.2%), state tourism tax (1.5%), and potentially additional municipal taxes. It’s important for sublessors to be aware of these tax obligations, as they may vary by city.

In South Dakota, landlords must return the security deposit within 14 days after the lease term ends, provided the tenant has given a forwarding address or delivery instructions. This applies to both the original lease and any sublease agreements.

Yes, a landlord in South Dakota can refuse to accept a subtenant if they have valid legal reasons, such as poor rental history or inability to verify qualifications. However, any rejection must not be discriminatory, as this would violate state law.

If your lease is silent or unclear about subleasing, you should contact your landlord for clarification before proceeding. It’s essential to ensure compliance with any occupancy or housing codes to avoid potential legal issues.

In South Dakota, the maximum security deposit that can be collected is typically limited to one month’s rent. However, landlords may exceed this limit with the tenant’s consent if special conditions pose a risk to the property.

To create a sublease agreement in South Dakota, tenants should draft a contract that includes essential details such as the names of the parties, rental terms, and conditions. It’s also advisable to attach a copy of the master lease and ensure that the landlord’s consent is documented.