Property Management Laws in South Dakota

Must South Dakota property management companies have a real estate broker's license?

NO. South Dakota is one of the few states that does not require a real estate broker's license to engage in property management. However, if a property manager is going to negotiate the rent, exchange or leasing of a property, list or rent real estate, or collect rent for real estate or if he or she holds herself out as engaging in those activities he or she will need at least a property manager's license, which is a type of restricted broker's license. Individuals must be licensed as individual property managers and partnerships, associations or corporations must be licensed as firms.

Are there any exceptions to the requirement that a South Dakota property manager have a property manager license or a real estate broker's license?

YES. For example, property managers are exempt from the license requirement if they do not engage in leasing, offers to lease, lease negotiations, or other lease-related activities. On-site residential managers maybe be eligible for a residential rental agent's license.

For more information about these and other South Dakota property management requirements and exceptions, please contact the South Dakota Real Estate Commission.

Before hiring a property manager to manage your South Dakota rental property, you should always check that he or she is licensed appropriately. You can check the license status of South Dakota property managers by referring to the state's online license licensee roster.

South Dakota Community Association Management Licensing

There is no requirement that a community association manager or condo association manager in South Dakota hold a real estate broker's license.

South Dakota Property Manager Licensing Requirements

South Dakota property manager licensing requirements include:

• Age: must be at least 18 years old
• Trustworthiness: licenses granted only to those with "reputable character"
• Citizenship: must be a citizen or legal resident of the U.S.
• Education: must successfully complete 40 hours of Fundamentals of Property Management.
• Exam: must pass the property manager exam with a score of 75% or better

South Dakota Responsible Broker Licensing Requirements

South Dakota responsible broker licensing requirements include:

• Age: must be at least 18 years old
• Trustworthiness: licenses granted only to those with "reputable character"
• Citizenship: must be a citizen or legal resident of the U.S.
• Education: must successfully complete 116 hours pre-licensing course; in addition, applicants for a Responsible Broker's License must show 15 class hours beyond the broker associate level
• Experience: applicants for a Responsible Broker's License must show two years of experience as a licensed salesperson or broker associate.
• Exam: must pass the broker exam with a score of 75% or better

South Dakota Associate Broker Licensing Requirements

South Dakota associate broker licensing requirements include:

• Age: must be at least 18 years old
• Trustworthiness: licenses granted only to those with "reputable character"
• Citizenship: must be a citizen or legal resident of the U.S.
• Education: must successfully complete 116 hours pre-licensing course
• Exam: must pass the broker exam with a score of 75% or better

For more information about these and other licensing requirements and exceptions, please contact the South Dakota Real Estate Commission.