The Malinauskas Labor Government has banned rent bidding in a bid to ease soaring rental prices with the reform passing Parliament today.

Adelaide’s median rent is now $450 per week (houses and units combined) – a record high – and the vacancy rate is among the lowest in the nation at 0.6 per cent.

This has encouraged ‘rent bidding’ where tenants are encouraged to offer above the advertised price to secure the property.

Landlords and agents are no longer able to advertise properties with a rent range, put properties up for rent auction, or solicit offers over the advertised rental price.

Additionally, where a third party is facilitating tenancy applications, any rating or assessment of a prospective tenant must not be based on an offer of higher rent.

This significant reform brings South Australia in line with other Australian jurisdictions, which have introduced restrictions on rent bidding.

The Malinauskas Government continues to act decisively to address the housing crisis with today’s reform following our move to raise the bond threshold from $250 to $800 – meaning the majority of tenants only have to pay a four-week bond now instead of six – saving them $1.3 million in the first month alone.

We have also announced plans to amend the Residential Tenancies Act so tenants cannot have their request to have a pet unreasonably refused while still allowing landlords to set reasonable conditions.

In addition, we are increasing the minimum notice to end a tenancy from 28 days to 60 days, so tenants will have more time to secure a new rental property and make the necessary arrangements to move.

Landlords will also be required to provide tenants with a prescribed reason to end a periodic tenancy agreement or to not renew a fixed term agreement such as wanting to move into or sell the property as part of future reforms to be introduced to Parliament this year.

Quotes

Attributable to Andrea Michaels

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.

Attributable to Ariba Siddiqi, tenant

This is a fantastic reform by the Malinauskas Government that 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.