Rent bidding to be banned in raft of changes to South Australian rental laws

Rent bidding, where tenants are encouraged to offer above a rental’s advertised price, will be banned in SA under new laws. See the other changes.

A raft of changes to South Australia’s rental laws will create a much fairer playing field for potential tenants.

Under new legislation to be introduced to state parliament, rent bidding — where tenants are encouraged to offer above the advertised price to secure a property — will be banned.

And landlords will no longer be allowed to advertise properties with a rent range, put properties up for rent auction or solicit offers over the advertised rental price.

Where an agent is processing applications, a rating or assessment of a prospective tenant must not be based on a higher rent offer.

The changes will bring SA in line with other jurisdictions, including NSW and Victoria, which have already introduced restrictions on bidding.

Consumer and Business Affairs Minister Andrea Michaels said she wanted to make the system fairer for South Australians looking for a home. Picture: NCA NewsWire/Kelly Barnes

Although rent bidding will be banned, landlords will still be allowed to accept offers above the listed rental price if they are made unsolicited and without encouragement.

Consumer and Business Affairs Minister Andrea Michaels said renters in Adelaide were already dealing with rising prices and one of the lowest rental vacancy rates in the nation.

“The practice of 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 rental accommodation,” she said.

“That’s why we are cracking down on rent bidding, because I want to make the system fairer for South Australians looking for a home.”

Real Estate Institute of SA chief executive Cain Cooke was supportive of the changes.

“These provisions will ensure clarity and transparency for tenants and enable them to lodge an application with certainty as to their capacity to meet the rental affordability of the property,” he said.

Shelter SA chief executive director Alice Clark welcomed the changes. Picture: Tricia Watkinson

Median rent in Adelaide reached a record $450/week, and the 0.6 per cent vacancy rate is among the lowest in the nation.

Shelter SA executive director Alice Clark said that given the state of the rental market, it was “no surprise” that people in need of a home have been driven to “desperate measures” like rent bidding.

“It is encouraging to see Minister Michaels adjust the legislative levers that can improve an aspect of affordability and prohibit practices that take advantage of applicants who cannot secure a home,” she said.

“Shelter SA welcomes the modernisation of rental laws and the proposed improvements to prohibit rent bidding.”