27 September 2023

In its latest issue of ‘CBS Connect’, South Australia’s Consumer and Business Services (CBS) announces the State’s commitment to greater protection for prospective tenants.

Earlier this month, we reported on new laws surrounding the prohibition of rent bidding in South Australia, which commenced on 1 September 2023. CBS has since clarified further commitments to improving housing outcomes for tenants and prospective tenants.

CBS reports further on the issue as follows:

Commitment to improving housing outcomes - provisions commencing 1 September 2023

The government is delivering on its commitment to A Better Housing Future announced in February 2023.

The immediate priorities have been implemented as follows.

More affordable rental bonds

Before 1 April 2023 landlords were able to claim residential bonds equivalent to a maximum 6-weeks’ rent when the weekly rent was more than $250, with only a 4-week bond entitled to be claimed for properties falling below that threshold. Increasingly fewer properties fell below this threshold.

Since April the bond threshold was raised to $800 to ensure that for the majority of rental properties in South Australia, only a 4-week bond is required.

This change reduces 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 applies to any bond paid or payable under an agreement entered into on or after 1 April 2023. Any bond paid before this date remains lodged with CBS until the conclusion of the tenancy agreement.

Rent bidding banned

Rent bidding has been banned in South Australia from 1 September 2023. Landlords or agents must advertise premises at a fixed amount and must not solicit or otherwise invite an offer for higher rent. This means landlords 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. 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.

A penalty of up to $20,000 now applies or $1,200 expiation fee.

Rental application form information requests

As a first step towards standardising rental application forms, landlords are being prohibited from requesting prescribed information from potential tenants.

Supporting regulations that define what information can't be requested will come into operation soon following further consultation.  Details on what will be prohibited and from when will be prescribed in the Regulations and updated here. Breaches will incur a penalty of up to $20,000 or $1,200 expiation fee.

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. This will apply to landlords, agents or third parties facilitating tenancy applications.

Further a person holding tenant or prospective tenant personal information must take reasonable steps to protect the information from misuse, interference or loss and from unauthorised access, modification or disclosure.

These provisions commence on 1 September 2023. However, a 12 month transitional period has been applied from 1 September 2023 to comply with the requirements relating to destruction of personal information only.

A penalty of up to $20,000 has been set or $1,200 expiation fee.