What is an assignment of rental income?

An assignment of rental income is a legal document in South Dakota residential real estate law that assigns ownership of rental income to a third-party. This document allows a tenant to transfer ownership of their rental income to another person or entity. This is most often used when the tenant needs assistance paying their rent or is otherwise unable to manage their rental income. When an assignment of rental income is executed, the tenant gives up their rights to the rental income and instead, the third-party becomes responsible for collecting and receiving the rental payments. This document can be beneficial to both the tenant and the third-party as it allows the tenant to remain in the rental property and the third-party to receive the rental income they are owed. This document should be executed by both parties and should be notarized to be legally binding.

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