In a significant move to address the ongoing housing crisis, the State Government has implemented a ban on rent bidding in South Australia. The reform, which successfully passed Parliament, aims to alleviate soaring rental prices in the region.
Adelaide’s median rent has reached a record high of $450 per week for houses and units combined, contributing to a staggeringly low vacancy rate of 0.6 percent. This alarming situation has led to the practice of “rent bidding,” where tenants are encouraged to offer amounts above the advertised price in order to secure a rental property.
Under the new regulations, landlords and agents are prohibited from advertising properties with a rent range, conducting rent auctions, or soliciting offers exceeding the advertised rental price. Furthermore, any assessment or rating of prospective tenants facilitated by third parties must not be based on higher rent offers.
South Australia now aligns itself with other Australian jurisdictions that have already introduced restrictions on rent bidding. This ban is part of the State Government’s ongoing efforts to tackle the housing crisis. Earlier, the government raised the bond threshold from $250 to $800, allowing the majority of tenants to pay a four-week bond instead of six, resulting in savings of $1.3 million in the first month alone.
Further reforms are on the horizon, as the government plans to amend the Residential Tenancies Act to ensure that tenants cannot unreasonably be denied the request to have a pet while still allowing landlords to set reasonable conditions.
Additionally, the minimum notice period to end a tenancy will be extended from 28 days to 60 days, giving tenants more time to secure new rental properties and make necessary arrangements.
Future reforms will also require landlords to provide tenants with a prescribed reason for ending a periodic tenancy agreement or declining to renew a fixed-term agreement, such as intentions to move into or sell the property.
Minister for Consumer and Business Affairs Andrea Michaels said ‘We have banned rent bidding in South Australia. Rent bidding unfairly drives up prices and is contributing to the current rental crisis by making it more and more difficult for South Australians to find affordable rental accommodation.’
‘The Malinauskas Government understands how difficult the rental market is with South Australia having one of the lowest rental vacancy rates in the nation and we continue to act decisively to make the system fairer and more accessible for South Australians looking for a home.’
Ariba Siddiqi, tenant, said that the reform will make it easier and fairer for people trying to secure a rental home.
‘I’ve experienced firsthand the frustrations of trying to find a rental in South Australia after moving here with my husband from Victoria in 2021.’
‘I often missed out on securing a property because other tenants were encouraged to offer more rent when they submitted their application. It creates unfair advantage, and wastes tenant’s time, especially when they have to take time out of work hours to visit a place for inspection.’
‘I raised the matter with my local member Lucy Hood and she encouraged me to participate in Minister Andrea Michaels’ review of the Residential Tenancies Act. They took my experience seriously and I appreciate the work the Government has done to achieve this much-needed reform.’
