This guide highlights the most common mistakes Sioux Falls landlords make and, more importantly, how to avoid them to protect your investment and maximize long-term returns.

Owning rental property in Sioux Falls can be a highly profitable investment—but only if it’s managed correctly. While the local rental market remains strong, many landlords unknowingly make mistakes that reduce cash flow, increase vacancy, and expose them to legal risk.

1. Underpricing the Rental Property

One of the biggest mistakes landlords make in Sioux Falls is setting rent too low out of fear of vacancy.

Why It Hurts

• Leaves money on the table every month
• Attracts less-qualified tenants
• Makes future rent increases harder

How to Avoid It

• Use a local rent market analysis, not online guesswork
• Compare similar properties by size, neighborhood, and condition
• Adjust rent annually to keep up with market trends

👉 Pro tip: Professional property managers often secure 5–10% higher rents through accurate pricing and marketing.

2. Poor Tenant Screening

Skipping or rushing tenant screening is one of the fastest ways to create long-term problems.

Common Screening Mistakes

• Not verifying income
• Ignoring credit or eviction history
• Accepting incomplete applications

How to Avoid It

• Require full applications from all adults
• Verify income (2.5–3x rent minimum)
• Run credit, background, and rental history checks

Strong screening reduces late payments, evictions, and property damage.

3. Not Understanding South Dakota Rental Laws

Many landlords assume landlord-tenant laws are the same everywhere—but South Dakota laws are specific.

Risk Areas

• Improper notice periods
• Mishandling security deposits
• Incorrect eviction procedures

How to Avoid It

• Stay updated on South Dakota landlord-tenant regulations
• Use legally reviewed lease agreements
• Document all notices and communications

Mistakes here can lead to costly delays or legal penalties.

4. Delaying Maintenance and Repairs

Ignoring small maintenance issues often turns into expensive repairs.

Why This Is a Problem in Sioux Falls

• Harsh winters accelerate wear and tear
• Small leaks can lead to mold or structural damage
• Tenants lose trust and renew less often

How to Avoid It

• Schedule preventive maintenance inspections
• Respond quickly to tenant requests
• Budget monthly for repairs

Well-maintained properties retain tenants longer and command higher rents.

5. Poor Communication With Tenants

Unanswered calls, delayed responses, and unclear expectations frustrate tenants and increase turnover.

Common Issues

• Not responding to maintenance requests
• Unclear lease rules
• Inconsistent enforcement

How to Avoid It

• Set clear communication channels
• Respond within 24 hours when possible
• Keep written records of all interactions

Happy tenants stay longer—and longer tenancies mean lower vacancy costs.

6. Managing Everything Yourself for Too Long

Self-managing may work at first, but many landlords underestimate the time commitment.

Signs You’re Overextended

• Missed maintenance issues
• Late rent follow-ups
• Burnout or stress

How to Avoid It

• Evaluate your time vs. return
• Outsource maintenance coordination
• Consider professional property management

Many Sioux Falls landlords find that professional management pays for itself through reduced vacancy and better tenants.

7. Weak or Generic Lease Agreements

Using outdated or generic leases exposes landlords to unnecessary risk.

Why This Matters

• Lease language must comply with local law
• Poor clauses limit enforcement
• Ambiguity leads to disputes

How to Avoid It

• Use South Dakota–compliant leases
• Clearly define rent, fees, maintenance, and rules
• Update leases regularly

A strong lease protects both the landlord and the tenant.

8. Ignoring Tenant Retention

Replacing tenants is expensive—often costing one to two months of rent.

Common Retention Mistakes

• No renewal incentives
• Sudden rent hikes
• Poor property upkeep

How to Avoid It

• Offer early renewal options
• Keep rent increases reasonable
• Maintain the property proactively

Long-term tenants stabilize cash flow and reduce management headaches.

9. Not Tracking Finances Properly

Many landlords don’t track expenses closely enough.

Why This Hurts

• Missed tax deductions
• Inaccurate cash flow projections
• Difficulty scaling

How to Avoid It

• Use property accounting software
• Keep receipts and maintenance logs
• Review monthly financial statements

Proper tracking helps you make smarter investment decisions.

10. Skipping Professional Help When Needed

Trying to “save money” by avoiding professionals often costs more in the long run.

When to Get Help

• Legal issues or evictions
• Major maintenance or roofing issues
• Scaling beyond one or two properties

Professionals reduce risk and protect your investment.

Final Thoughts: Smarter Landlording in Sioux Falls

Sioux Falls is an excellent market for rental property owners—but success depends on avoiding these common mistakes. From pricing and screening to maintenance and legal compliance, proactive management makes all the difference.

Whether you self-manage or work with a professional, the goal is the same:
maximize returns, minimize stress, and protect your property long-term.

Your Complete Property Management Resource

At Dallol Property Management, we deliver performance-driven property management focused on maximizing returns and protecting your investment. Our team manages single-family homes, apartments, townhomes, and duplexes across the Greater Sioux Falls area with a disciplined, hands-off approach for owners.

By optimizing rental income, reducing vacancy, and prioritizing proactive maintenance, we help preserve asset value and create stable, long-term cash flow. Our technology-driven systems provide efficient operations, transparent reporting, and real-time visibility into your portfolio.

Start with our first month free offer and partner with a management team built for investors. We handle the day-to-day management so you can focus on growing your portfolio.

Contact us with the information below and we will be in touch! Call 605-610-9461 or send us an email at info@dallolpm.com

Our Property Management Services Include:

• Preparation and execution of lease agreements
  
• Collection of security deposits and monthly rent
  
• Initial move-in inspection with detailed photo documentation
  
• Coordination and dispatch of maintenance and repair requests
  
• 24/7 emergency maintenance support
  
• Ongoing resident communication for lease-related questions and concerns
  
• Enforcement of lease terms to protect your investment
  
• Electronic owner disbursements via ACH direct deposit
  
• Complete move-out and turnover coordination (cleaning, painting, repairs, etc.)