Reforms to South Australian renting law officially underway
/27 March 2023
Following consultation with property industry participants and the public late last year, the South Australian Government has now introduced proposed changes to the Residential Tenancies Act 1995 to parliament.
The Government of South Australia initially outlined immediate priorities on 15 February 2023, including:
a commitment to improving housing outcomes
more affordable rental bonds
a ban on rent bidding
restrictions on what information is requested on rental application forms
greater protection for tenant information
As the key regulator of the property industry in South Australia, Consumer and Business Services (CBS) has announced they will “provide advice to the State Government to inform the best way forward for South Australia”.
CBS report further on the issue as follows:
Review of SA’s renting laws
South Australia’s rental laws are being updated to better meet the needs of today’s rental housing market, improve protections for renters and ensure landlords can continue to manage properties effectively.
We are acting on feedback from the public to help shape the laws and the rights and responsibilities of tenants, landlords, agents and property managers in SA.
Consultation as part of the review process ran between 15 November 2022 and 16 December 2022.
Consumer and Business Services is considering feedback provided from stakeholders and members of the public and will provide advice to the State Government to inform the best way forward for South Australia.
Meantime, the Government of South Australia outlined immediate priorities on 15 February 2023. These are detailed below.
Issues for consultation
As part of the review process, feedback was invited on a range of issues including:
Longer tenancies and the rules around ending or not renewing a lease
The maximum bond amount
Whether rent bidding should be illegal
New requirements for rooming houses and share accommodation
Renting with pets
Housing standards and retaliation by landlords
Tenants making safety modifications and minor changes in certain circumstances
Limiting the amount of personal information required for rental applications
Support for renters experiencing domestic violence
Water bills and payment requirements
Contaminated properties due to illegal drug activity
Extra fees for rent payments via a third party
Replacing some words in the legislation with more modern wording.
More information about the review of SA’s renting laws is available at https://yoursay.sa.gov.au/renting-law-reform
Commitment to improving housing outcomes
The government has also made a commitment to A Better Housing Future.
This includes reforming the Residential Tenancies Act 1995 to better meet the needs of today’s rental housing market, improve protections for renters and ensure landlords can continue to manage properties effectively.
The immediate priorities are as follows.
More affordable rental bonds
Currently landlords are able to claim residential bonds equivalent to a maximum six-weeks’ rent when the weekly rent is $250 or greater, with only a four-week bond entitled to be claimed for properties falling below that threshold. Increasingly fewer properties fall below this threshold. The bond threshold will now be raised to $800 to ensure that for the majority of rental properties in South Australia, only a four-week bond will be required.
This change will reduce the amount of upfront costs for tenants by between $500 and $1,600, depending on the amount of rent they are paying.
The new amount will apply to any bond paid or payable under an agreement entered into on or after 1 April 2023. Any bond paid before this date will remain lodged with CBS until the conclusion of the tenancy agreement.
Banning rent bidding
The government is taking action to ban the practice of rent bidding. Landlords will no longer be able to advertise properties with a rent range, put properties up for rent auction, or solicit offers over the advertised rental price. This reform brings South Australia in line with other Australian jurisdictions which have introduced restrictions on rent bidding.
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 will require a change to the Act and a Bill will be introduced into Parliament.
Rental application forms
As a first step towards standardising rental application forms, landlords will be prohibited from requesting prescribed information from potential tenants. Further consultation will be undertaken to define what information will not be allowed to be requested, however will be informed by other jurisdictions, such as Victoria’s model where landlords are prohibited from seeking:
information on whether or not the applicant has previously taken legal action or had a dispute with a rental provider,
the applicant’s rental bond history,
a statement from a credit or bank account containing daily transactions; and
any information about the applicant that relates to a protected attribute under equal opportunity legislation.
This will require a change to the Act and a Bill will be introduced into Parliament. Details on what will be prohibited will need to be prescribed in the Regulations following the passage of a Bill.
Protecting tenant information
For successful tenant applications, information provided for the purposes of applying to enter into a tenancy agreement will need to be destroyed within 3 years of the tenancy ending.
Prospective tenants’ information may only be kept for 30 days after the tenancy agreement is entered into (by the successful applicant) or up to 6 months with the prospective tenants’ consent for the purposes of continuing to assist with applying for a tenancy. This will apply to landlords, agents or third parties facilitating tenancy applications.
This will require a change to the Act and a Bill will be introduced into Parliament.
