Rent bidding banned in South Australia
/27 June 2023
In a media release today, South Australia Consumer and Business Services (CBS) has announced that rent bidding within the South Australian rental market is now prohibited. Landlords and agents 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.
The new laws will also prevent third-party tenancy application platforms from rating or assessing a prospective tenant based on an offer of higher rent.
The decision comes after fellow states and territories have moved to ban rent bidding over the past year.
CBS reports further on the issue in their latest media release:
South Australia bans rent bidding
The South Australian 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 government continues to act decisively to address the 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.
The government has 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, the government is 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 or sell the property as part of future reforms to be introduced to Parliament this year.
