Fears SA tenants are more vulnerable to unfair and unlawful landlord demands in competitive rental market

Industry experts fear SA’s increasingly competitive rental market is fuelling absurd conditions – as tenancy disputes hit record highs.

The increasing cost of rental accommodation in South Australia is contributing to a record number of landlord and tenant disputes, fuelling concerns of a rise in unreasonable landlord demands.

SA realtors, property managers and tenant advocates have told the Sunday Mail unlawful landlord demands have, in the past, banning gay or bisexual sex in the premises and guests at the property.

Ouwens Casserly director of property manager Adam Blight said SA tenants negotiating lease agreements were more vulnerable to unfair landlord demands in the current, highly competitive rental market.

Mr Blight warned tenants to know their rights and, where possible, rent from a reputable agent and Real Estate Institute of SA member.

Data from the Legal Services Commission of SA shows 2687 South Australians sought legal aid for disputes over rental accommodation in 2020.

This is up 42 per cent compared with three years ago and up slightly from the record-breaking tally of 2666 calls in 2019. The recent figures do not take into account reports earlier this month that SA private rental demand has risen to its highest level in decades, pushing up rent by 10 to 20 per cent.

“It appears the increasing cost of housing and rental accommodation in SA is contributing to rising numbers of disputes between landlords and tenants,” said SA manager of access services for the Commission, Chris Boundy.

Mr Boundy said a significant number of disputes involved people forced out of private rental accommodation because their lease had not been renewed, and from students unaware of their legal rights and obligations.

“In some cases, tenants from overseas are being taken advantage of by landlords,” he said.

The Commission could not provide specific details of the complaints reported.

Tenancy advisory service RentRight SA, run by not-for-profit group SYC, says unfair rent increases when renewing lease agreements was one of the top complaints received this year in record calls for assistance.

“Tenants are in a really tight spot right now because they will say yes to higher rent and give up things like medication and food to absorb that added cost just to keep a roof over their heads because they know finding another rental property in the current market is very, very hard,” said SYC Head of Home and Housing Kirsten Sandstrom.

Ms Sandstrom said RentRight’s average daily call rate was up from 28.5 calls a day in January and February 2019 to about 39 calls a day over the same period this year.

There is currently a case involving a landlord earlier this year imposing a significant increase in a tenant’s rent as part of a lease agreement extension expected to be heard in the South Australian Civil and Administrative Tribunal (SACAT).

Under the SA Residential Tenancies Act 1995, rental increases are allowed after the first 12 months of a lease provided the rental increase is not “excessive”.

Commissioner for Consumer Affairs Dini Soulio said there had been no discernible increase in reported unreasonable landlord demands in tenancy agreements.

Mr Soulio said three formal complaints had been made relating to unreasonable demands in agreements in the past two years.

These included tenants required to test smoke alarms, clean airconditioning filters and change light globes. The landlords involved received a warning.

“We’d encourage both tenants and landlords to consider their obligations under the Act when entering into an agreement, and contact Consumer and Business Services for advice if they’re uncertain about whether any action is compliant,” said Mr Soulio.

Landlords Association SA president Margaret Kohlhagen said rent prices had increased in lease renewals in recent months however they were not exorbitant and not just in reposes to greater demand.

Ms Kohlhagen said landlords were needing to absorb increasing costs, including land tax.

She said the majority of landlords understood their responsibilities and operated within the limits of the Act, when drafting tenancy agreements.

For advice call the Legal Services Commission on 1300 366 424; RentRight SA on 1800 060 462; and Consumer and Business Services on 13 18 82.

Originally published as Fears SA tenants are more vulnerable to unfair and unlawful landlord demands in competitive rental market