Sioux Falls Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Sioux Falls, South Dakota?

In Sioux Falls, South Dakota, new regulations have been approved for short-term rentals, affecting properties within the "joint jurisdictional area." The newly-passed rules include an occupancy limit of three people per bedroom and one parking space per bedroom. Additionally, the home must be registered with the state, and the owner's contact information must be on file with the city's Planning and Development Services.

The definition of a short-term rental has been updated to include properties rented to the public on a daily or weekly basis for more than fourteen days in a calendar year.To operate a short-term rental business in Sioux Falls, property owners must obtain a permit from the city. This applies to both long- and short-term housing rentals. The permit requires proof of licensure through the South Dakota Real Estate Commission or a state sales tax license for the short-term rental unit. Owners must also provide proof of a state health department lodging license and any other state license required by law2.

The City of Sioux Falls has about 650 permitted short-term vacation rentals within its limits. The growth of websites like Airbnb and VRBO has contributed to an increase in homeowners renting out their properties as vacation rentals. However, controversy has arisen due to the impact of these rentals on residential neighborhoods.

The city has been working on crafting long-term policy for short-term rentals, and there have been discussions about the enforcement of regulations and the need for a comprehensive ordinance3.In light of these regulations, it is essential for individuals interested in starting a short-term rental business in Sioux Falls to familiarize themselves with the specific requirements and to ensure compliance with the new rules.

Starting a Short Term Rental Business in Sioux Falls

To start a short-term rental business in Sioux Falls, South Dakota, one must navigate a permitting process set by the city. This process has become a hot topic in the area, given the increasing use of platforms like Airbnb and VRBO, which has led to a surge in homeowners renting out their properties as vacation rentals. Currently, there are about 650 permitted short-term vacation rentals in the city.

However, the recent growth of these rentals has raised concerns about their impact on residential neighborhoods, prompting the Sioux Falls City Council and Minnehaha County Commission to approve new regulations for short-term rentals in the joint jurisdictional area.The newly passed rules require short-term rentals in the area to adhere to specific regulations, such as an occupancy limit of three people per bedroom and one parking space per bedroom. Additionally, the home needs to be registered with the state, and the owner's contact information must be on file with the city's Planning and Development Services.

The city code defines a short-term vacation rental as a dwelling that is rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen days in a calendar year.The permitting process and regulations are aimed at ensuring the responsible and compliant operation of short-term rentals in Sioux Falls. It is essential for individuals looking to venture into this business to stay informed about the evolving regulations and to adhere to the requirements set by the city and the county.

For further information on the specific steps and requirements for starting a short-term rental business in Sioux Falls, it is advisable to directly contact the City of Sioux Falls Planning and Development Services.The proposed changes and regulations indicate the city's commitment to addressing the impact of short-term rentals on the community and ensuring that they are operated in a manner that is considerate of the surrounding neighborhoods.

As such, individuals interested in starting a short-term rental business in Sioux Falls should closely monitor any updates to the regulations and proactively comply with the necessary procedures to operate within the city's guidelines.

Short Term Rental Licensing Requirement in Sioux Falls

To operate a short-term rental (STR) business in Sioux Falls, you must obtain a permit from the city4. The city has about 650 short-term vacation rentals permitted within its limits4. The growth of websites like Airbnb and VRBO has led to an increase in homeowners renting out their properties as vacation rentals4.

The licensing requirement for short-term rentals in Sioux Falls includes the following steps:

• Obtain a permit: The city has a permitting process for short-term rentals, which requires property owners to obtain a permit from the city4.
• Register with the state: The home needs to be registered with the state1.
• Provide contact information: The contact information for the owner must be on file with the city's Planning and Development Services1.
• Comply with statewide regulations: It is essential to research and comply with any applicable statewide regulations when operating a short-term rental business in South Dakota5.

The definition of a short-term rental in Sioux Falls is a dwelling or portion thereof, or a mobile or manufactured home or portion thereof, that is rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen (14) days in a calendar year1.

The newly-passed rules require short-term rentals in the area to have an occupancy limit of three people per bedroom and to have one parking space per bedroom1. The home needs to be registered with the state, and the contact information for the owner must be on file with the city's Planning and Development Services1.In Sioux Falls, the permit requirement does not apply to properties that qualify as on-campus housing, hospitals, nursing homes, or motels5.

To obtain a permit, individuals must provide the following information:

• Property owner's name, email, mailing address, and phone number5.
• If the owner resides more than 50 miles from Sioux Falls (city limits), provide a separate contact (name, email, phone number, mailing address) who does live within 50 miles and is able to provide or approve property upkeep5.

Required Documents for Sioux Falls Short Term Rentals

In Sioux Falls, South Dakota, the regulations for short-term rentals have been updated to include specific requirements for property owners. The newly passed rules, which apply to the "joint jurisdictional area" within Minnehaha County, mandate that short-term rentals must adhere to an occupancy limit of three people per bedroom and provide one parking space per bedroom15. Additionally, the property needs to be registered with the state, and the owner's contact information must be on file with the city's Planning and Development Services1.

The definition of a short-term rental has also been revised to encompass dwellings or portions thereof, including mobile or manufactured homes, that are rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen days in a calendar year1. Furthermore, property owners are required to obtain a residential rental permit from the city, which involves attending a minimum of two hours of training, unless they are already licensed as a broker, broker associate, property manager, or residential rental agent with the South Dakota Real Estate Commission3.

These regulations aim to ensure the safety and compliance of short-term rentals in the area. It is essential for property owners to familiarize themselves with these requirements and obtain the necessary permits and licenses to operate a short-term rental business in Sioux Falls.

Sioux Falls Short Term Rental Taxes

Sioux Falls has specific tax requirements for short-term rentals, which are essential to comply with when operating a short-term rental business in the city. The main taxes applicable to short-term rentals in Sioux Falls include:

• Tourism Tax: The Tourism Tax is 1.5% and applies to the gross receipts of hotels, lodging places, campgrounds, motor vehicle rentals, recreational services, spectator events, visitor attractions, and visitor-intensive businesses (50% or more of total annual gross receipts from the sale of TPP during June, July, August, and September)2.
• City Tax: The city of Sioux Falls has a 1% room/occupancy tax and a $2 per room BID fee5.
• Municipal Gross Receipts Tax: This tax is 1% and applies to the gross receipts of short-term rentals2.
• Sioux Falls Lodging Tax: This tax is 1% and applies to the gross receipts of short-term rentals2.

It is essential to research and comply with these tax requirements when operating a short-term rental business in Sioux Falls. The South Dakota Department of Revenue collects the sales taxes from those who operate short-term rentals, and these taxes are provided to the state through platforms like Airbnb and VRBO5.

South Dakota wide Short Term Rental Rules

In South Dakota, including Sioux Falls and some parts of Minnehaha County, new regulations have been approved for short-term rentals. The newly passed rules require short-term rentals to have an occupancy limit of three people per bedroom and one parking space per bedroom. Additionally, the property needs to be registered with the state, and the owner's contact information must be on file with the city's Planning and Development Services23.

The definition of a short-term rental has also been updated to include dwellings or portions thereof, mobile or manufactured homes, rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen days in a calendar year3. Furthermore, the South Dakota Department of Revenue collects sales taxes from operators of short-term rentals, including state, tourism, municipal, and municipal gross receipts tax5.

The city of Sioux Falls has no specific regulations covering short-term rentals, but property owners must apply for a license and show proof of inspection from the South Dakota Department of Health. If they cannot provide this, the properties must be inspected by the city. While some cities may have ordinances on short-term rentals, the requirements are uneven at best. Short-term rentals are not treated like motels in South Dakota, and the South Dakota Hotel and Lodging Association emphasizes the need for a level playing field5.

These regulations aim to ensure the safety and compliance of short-term rentals in South Dakota, and it is essential for property owners to be aware of and adhere to these rules when operating a short-term rental business in the state.

Does Sioux Falls strictly enforce STR rules?

Sioux Falls, South Dakota, has specific regulations for short-term rentals (STRs), which are often found in a zoning code, planning code, or Sioux Falls ordinances. These rules aim to ensure the safety and compliance of STRs in the city. The city has a permitting process for short-term rentals, which requires property owners to obtain a permit from the city. However, the city has not been strictly enforcing STR rules, as there are only three properties in the area that currently meet the new regulations.The permitting process for short-term rentals in Sioux Falls requires property owners to obtain a permit from the city.

The city code defines a short-term vacation rental as a dwelling or portion thereof, or a mobile or manufactured home or portion thereof, that is rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen (14) days in a calendar year. Property owners must provide a list of information about themselves and the property they would like to rent out. They are given a certain set of parameters with which they and the guests must comply. If any of these parameters are broken, the renter loses their permit to rent their home out as a short-term rental after four citations.

The growth of websites like Airbnb and VRBO has led to an increase in homeowners renting out their properties as vacation rentals. Today, there are about 650 short-term vacation rentals permitted in the Sioux Falls city limits. However, the city has been working on crafting long-term policy for short-term rentals, which has led to some controversy. Neighbors have come forward to complain of lots of vehicles coming and going, visitors taking up street parking, excessive noise, and a handful of other things. This has led the Sioux Falls City Council and Minnehaha County Commission to recently address the issue.In August, an ordinance was proposed by the Sioux Falls City Council and Minnehaha County Commission that would mirror the city’s ordinance in some respects, such as the loss of permit following four violations, and similar informational and reporting requirements.

However, the city has not been strictly enforcing STR rules, as there are only three properties in the area that currently meet the new regulations.To start a short-term rental business in Sioux Falls, property owners must obtain a permit from the city, register their property with the state, provide contact information for the owner to the city's Planning and Development Services, and comply with any applicable statewide regulations.

How to Start a Short Term Rental Business in Sioux Falls?

To start a short-term rental business in Sioux Falls, South Dakota, you must adhere to the city's regulations and permitting process. The recent ordinance, which applies to both traditional long-term rental units and short-term rental options like those offered through platforms such as Airbnb or VRBO, has introduced several changes to the existing regulatory scheme1.

Here are the steps to get started:

• Understand the Regulations: Familiarize yourself with the new ordinance and the definition of a short-term rental unit. A short-term vacation rental is defined as a dwelling or portion thereof that is rented, leased, or furnished to the public on a daily or weekly basis for more than fourteen days in a calendar year1.
• Obtain a Rental Permit: If your property qualifies as a short-term rental, you must obtain a rental permit from the city. This permit now requires proof of a state sales tax license and state health department lodging license1.
• Provide Required Documentation: As part of the permitting process, you will need to provide the necessary documentation, including proof of state sales tax and lodging licenses, and contact information for the owner on file with the city's Planning and Development Services15.
• Comply with Occupancy and Parking Regulations: Ensure that your property complies with the occupancy limit and parking space requirements set by the city4.
• Stay Informed: Keep yourself updated on any changes in the STR regulations in Sioux Falls, as the information may be subject to constant updates3.

By following these steps and staying compliant with the city's regulations, you can start and operate a short-term rental business in Sioux Falls.

Who to contact in Sioux Falls about Short Term Rental Regulations and Zoning?

To ensure compliance with Sioux Falls' short-term rental (STR) regulations and zoning, it is essential to contact the City of Sioux Falls Planning and Development Services. They can provide detailed information on the specific requirements, permitting process, and zoning regulations for operating an STR in the city. You can reach them at (605) 367-8740 or visit their official website for comprehensive guidance and the most up-to-date information5.

For a more in-depth understanding of the regulations and to address any specific questions you may have, consider booking a consultation with industry experts who can provide tailored guidance on navigating the STR landscape in Sioux Falls. Additionally, resources available at BuildYourBnb, such as free guides and valuable insights from hosting thousands of guests, can be instrumental in kickstarting your journey as an informed and compliant STR host1.

What do Airbnb hosts in Sioux Falls on Reddit and Bigger Pockets think about local regulations?

To get a better understanding of how Airbnb hosts in Sioux Falls feel about local regulations, we can look at some discussions on Reddit and Bigger Pockets.

Reddit

On Reddit, there is a thread discussing the proposed rental ordinance in Sioux Falls1. The thread has a mix of opinions, with some users expressing concerns about the potential impact on the short-term rental market, while others support the need for regulations. However, the thread does not provide a clear consensus on how hosts feel about the regulations.

Bigger Pockets

Bigger Pockets is a real estate investing platform where users can discuss various topics, including short-term rental regulations. Unfortunately, there is no specific information available on Bigger Pockets about Sioux Falls Airbnb hosts' opinions on local regulations.

In conclusion, while there are some discussions on Reddit about the proposed rental ordinance in Sioux Falls, there is no clear consensus on how Airbnb hosts feel about the regulations. Additionally, there is no information available on Bigger Pockets about Sioux Falls Airbnb hosts' opinions on local regulations.