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The first day of September marks the start of South Australia’s ban on rent bidding, with hefty fines already being threatened.
According to South Australia’s Minister for Consumer and Business Affairs, Andrea Michaels, fines of up to $20,000 will be on the cards for landlords or agents who are caught soliciting higher rental bids.
The legislation was first announced back in February, alongside a series of reforms that look to address rental affordability and improve tenant rights.
In the latest reminder about the rent bidding ban, Ms Michaels noted that Adelaide’s median rental price is now sitting at $540 per week, with the vacancy rate “amongst the lowest in the nation at below 1 per cent”.
With tenants reportedly being encouraged to offer above an advertised price to secure the property across the state, the government reported that landlords or agents “must now advertise premises at a fixed amount and must not solicit or otherwise invite an offer for higher rent”.
Effectively, it means landlords and agents cannot advertise properties with a rent range, or put properties up for rent auction.
They are also prohibited from soliciting offers over the advertised rental price.
The government has also raised that the new legislation means that when a third party is facilitating tenancy applications, any rating or assessment of a prospective tenant cannot be based on an offer of higher rent.
From the minister’s perspective, “creating a bidding war is completely unfair to tenants who are struggling to secure a rental home and wastes their time”.
She stated: “In the current market, people are going to look at 50 or more homes and they have the right to know that the price that property is advertised for, is the price it will be leased for.”
“Now, anyone subjected to an attempt to solicit rent bidding can report it to Consumer and Business Services,” Ms Michaels advised.
She said the “significant” reform brings the state in line with other Australian jurisdictions.
The ban follows the government’s move to raise the bond threshold from $250 to $800 – a move that meant the majority of tenants would only have to pay a four-week bond, rather than a six-week one.
Ms Michaels also revealed that targeted consultation is currently underway on a range of amendments to the Residential Tenancies Act, which could see landlords prevented from “unreasonably refusing a tenant’s request to keep a pet, and see landlords then able to set reasonable conditions on the keeping of the pet”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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