Discover the game-changing new laws set to shield renters from unfair treatment

In a move that's been hailed as a significant victory for renters, one state has introduced a series of sweeping reforms aimed at protecting tenants from exploitation and providing them with greater security and peace of mind.

As the cost of living continues to rise and the rental market becomes increasingly competitive, these changes are a welcome relief for many, particularly those who often face additional challenges in securing affordable and stable housing.



The new laws, which came into effect this month in South Australia, represent the second phase of a comprehensive reform package.

The reforms are designed to bolster tenant rights in a market where average weekly rents are climbing, and vacancy rates are at record lows.


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South Australia introduced reforms to protect renters. Image source: Freepik



This is a crucial step forward for the state, setting a precedent that could potentially inspire similar reforms in other states and territories.

The rental market can be a daunting landscape to navigate, especially for those who are relocating or may not have the flexibility to attend multiple property inspections.



The story of Alejandro Maturana and his wife, Stephanie Opazo, is a testament to the challenges faced by many.

After moving to Adelaide from Queensland, they encountered a fiercely competitive market, inspecting 20 properties and adopting a strategic approach to secure a home.

‘Initially, we booked a two-week stay in a shared house through Facebook Marketplace,’ Alejandro said.

‘Unfortunately, just a night prior to our scheduled arrival in Adelaide, the contact on the app informed us of the cancellation.’

‘We managed to secure temporary accommodation through a friend until we could find a more permanent solution,’ he recalled.

The couple finally secured rental approval after a week of persistence.

Their experience underscores the difficulties that come with finding a rental property, from dealing with potential scams to coordinating inspections and providing additional information to agents.



The new reforms, effective March 1, are set to make a significant impact on the rental experience of South Australians:

1. Rent Increase Caps: Landlords can now only raise rent once every 12 months, preventing unexpected and frequent hikes that can strain tenants' budgets.

2. Anti-Discrimination Measures: There's a substantial increase in fines for landlords who discriminate against tenants with children, jumping from $2,500 to a hefty $25,000.

3. False Possession Claims: Landlords falsely claiming they need possession of a property to terminate a tenancy now face fines up to $50,000, a substantial increase from the previous $2,500.

4. Ban on Rent Bidding: Following the illegalisation of rent bidding last September, landlords can no longer solicit higher bids above the listed price, with penalties reaching $20,000 for breaches.

5. Upcoming Changes: Later this year, the notice period to end a tenancy will extend from 28 to 60 days, tenants will have the right to keep pets with ‘reasonable conditions’, and rental properties must meet minimum housing standards.



According to Consumer and Business Affairs Minister Andrea Michaels, the government's approach strikes a balance between tenant protections and landlord rights.

‘At a time when South Australian tenants are facing unprecedented levels of housing insecurity, we want to ensure tenants have the best possible protections in place, including stronger rights, more financial stability and better long-term security,’ she said.

‘Landlords also deserve protection to ensure their property is being properly taken care of, which is why we have also increased penalties available for those tenants who fail to live up to their responsibilities,’ Ms Michaels added.

For tenants who may cause intentional damage to a property, the fines have also been increased to $25,000 from the previous $2,500.



Data from SQM Research clearly shows the current state of the rental market. With average weekly rents rising and vacancy rates at historic lows, the pressure on renters is palpable.

Cities like Adelaide have seen a 13 per cent increase in rent prices over the past year, with houses averaging $638 per week and units at $457.

In Perth, the rent for houses and units has increased by 17.3 per cent in the past 12 months, with houses now renting at $778 and units at $580.

Meanwhile, in Sydney, Australia's most expensive region, house prices have surged by 11.1 per cent to $1,054 and unit prices have reached $703.

More than that, the national vacancy rate is just 1 per cent.

In Adelaide, the vacancy rate is 0.5 per cent, while Perth has the tightest market, with a just 0.4 per cent vacancy rate. In comparison, Sydney's vacancy rate stands at 1.1 per cent.



For individuals like Alejandro and Stephanie, the new measures in South Australia are a beacon of hope. These regulations aim to curb scams and provide a more regulated and secure process for finding accommodation, which is particularly important for those more vulnerable to exploitation.

‘Addressing these problems would significantly enhance safety measures and ensure a more secure procedure for finding accommodation,’ Alejandro stated.

Key Takeaways
  • South Australia has introduced significant reforms to protect renters, including limits on rent increases, increased notice periods, and stronger penalties for exploitative landlords.
  • The new measures aim to address the difficulties renters face in a highly competitive market where average rent prices are rising and vacancy rates are at historic lows.
  • The changes include capping rent price increases to once yearly, illegalising rent bidding, and extending notice periods.
  • The reforms have been described as striking the balance between protecting tenants' rights and ensuring landlords can protect their property and interests.
Do you think other states should make similar reforms, members? Share your thoughts in the comments below!
 
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I think most of these law changes are good.
Except, as a landlord myself, in the past, I think landlords should still be able to refuse pets if they so wish.
I recently allowed a tenant to have a dog. He ended up with three. I had constant complaints from the neighbours.
The dogs wrecked the gardens and when we finally got them out we had a yard full of 10 months of dog crap. On top of that they had let the dogs in the house, so as well as having to have the place fumigated for fleas we also had to replace four rooms of carpet as the dogs had pissed all over them.
What a joke about the fines for tenants. How many tenants have $25,000 to pay fines. That is laughable.
By the time you manage to get bad tenants out they are already months behind in rent and their bond nowhere near covers the damages.
We sold our rental, it is not worth the hassle, so one less property available for rent and this is going to keep on happening as more and more people pull out if investment properties and look for less troublesome investments.
 
I think most of these law changes are good.
Except, as a landlord myself, in the past, I think landlords should still be able to refuse pets if they so wish.
I recently allowed a tenant to have a dog. He ended up with three. I had constant complaints from the neighbours.
The dogs wrecked the gardens and when we finally got them out we had a yard full of 10 months of dog crap. On top of that they had let the dogs in the house, so as well as having to have the place fumigated for fleas we also had to replace four rooms of carpet as the dogs had pissed all over them.
What a joke about the fines for tenants. How many tenants have $25,000 to pay fines. That is laughable.
By the time you manage to get bad tenants out they are already months behind in rent and their bond nowhere near covers the damages.
We sold our rental, it is not worth the hassle, so one less property available for rent and this is going to keep on happening as more and more people pull out if investment properties and look for less troublesome investments.
Thanks for sharing, @mylittletibbies. Do you have any advice for members who may be considering going the rental route for income?
 
I think most of these law changes are good.
Except, as a landlord myself, in the past, I think landlords should still be able to refuse pets if they so wish.
I recently allowed a tenant to have a dog. He ended up with three. I had constant complaints from the neighbours.
The dogs wrecked the gardens and when we finally got them out we had a yard full of 10 months of dog crap. On top of that they had let the dogs in the house, so as well as having to have the place fumigated for fleas we also had to replace four rooms of carpet as the dogs had pissed all over them.
What a joke about the fines for tenants. How many tenants have $25,000 to pay fines. That is laughable.
By the time you manage to get bad tenants out they are already months behind in rent and their bond nowhere near covers the damages.
We sold our rental, it is not worth the hassle, so one less property available for rent and this is going to keep on happening as more and more people pull out if investment properties and look for less troublesome investments.
That's nothing. I once ended up with 7 dogs in the place and running around the street. Another tenant with a dog also introduced fleas into the house and garden, which when I moved back in for a good number of years, took about 3 months to eradicate. I have had three dogs dumping dog-shit across a 1/4 acre back garden for about 9 months until the tenant did a runner leaving me to clean up the mess. I have had a tenant whom I treated understandingly and civilly leave owing me $11000 in unpaid rent. I have had three tenants break leases and even doing so by giving the agency proper notice they cost me about $3300 in the managing agency's fees for re-leasing the properties. I have had a bogan tenant punch holes in internal doors and walls. I have had a tenant steal doors and fitted carpets and have her boyfriends throw tea and coffee over walls and ceilings and knock holes in walls before doing a runner.

Tenants? It is no wonder that landlords prefer to let their places through AirBnB. Yes, I am contemplating selling to someone who will live in the place but having bought it many years ago as an original family home the capital gains tax because of now inflated house prices kills any reasonable profit that could be invested to help pay for my retirement. As for other costs born by landlords; everything including paint, nails, timber, land-tax, insurance etc has rocketed in price since Covid came to town.

PS. My parents and myself in post-teen years also navigated the rental market, from 1945 to 1983. There is nothing new about the difficulty and hardship in renting a decent place to live.
 
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That's nothing. I once ended up with 7 dogs in the place and running around the street. Another tenant with a dog also introduced fleas into the house and garden, which when I moved back in for a good number of years, took about 3 months to eradicate. I have had three dogs dumping dog-shit across a 1/4 acre back garden for about 9 months until the tenant did a runner leaving me to clean up the mess. I have had a tenant whom I treated understandingly and civilly leave owing me $11000 in unpaid rent. I have had three tenants break leases and even doing so by giving the agency proper notice they cost me about $3300 in the managing agency's fees for re-leasing the properties. I have had a bogan tenant punch holes in internal doors and walls. I have had a tenant steal doors and fitted carpets and have her boyfriends throw tea and coffee over walls and ceilings and knock holes in walls before doing a runner.

Tenants? It is no wonder that landlords prefer to let their places through AirBnB. Yes, I am contemplating selling to someone who will live in the place but having bought it many years ago as an original family home the capital gains tax because of now inflated house prices kills any reasonable profit that could be invested to help pay for my retirement. As for other costs born by landlords; everything including paint, nails, timber, land-tax, insurance etc has rocketed in price since Covid came to town.
There is a 50% reduction in Capital Gains if you have owned for a certain amount of time. It’s the GST that’s the killer
 
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Thanks for sharing, @mylittletibbies. Do you have any advice for members who may be considering going the rental route for income?
Yes, I sure do Jarrod. I would never have a rental property again, it is not worth the stress and can be a very costly experience when you get a bad tenants and over the years we have had more bad tenants than good. Good tenants are like hen's teeth.
We had a lovely federation home several years ago which against my better judgement I agreed to let my husband talk me into a rent to buy situation. A very long story, but this deal went pear shaped and involved an 18 month court case and a capital loss on the property, which was trashed, of $137,000.
Not to mention the heartache of seeing the house we had spent years lovingly restoring, plus the stress of a long and drawn out court case.
I would never have a rental property again, and certainly not if you need to have a mortgage on it and you go months and months in court, in the meantime receiving no rent.
We were lucky the home was not mortgaged or we would have lost considerably more
Tenant insurance is not worth the money you pay for it, they find every excuse in the book not to pay out.
Your money is safer in the bank IMO.
 
  • Wow
Reactions: Jarred Santos
Thanks for sharing, @mylittletibbies. Do you have any advice for members who may be considering going the rental route for income?
If you want to get on the rental market I thoroughly recommend the Defence Force Housing. DHA. They inspect the house regularly, do all maintenance, you have rental income even when not occupied, they paint, clean etc prior to end of lease. The catch is there is a lease of 12 years (you can sell during that time, to someone willing to take it over). You pay more fees to the DHA but this includes the maintenance but not structural improvement. We were very happy with them as there were virtually no risk.
 
  • Wow
Reactions: Jarred Santos
Yes, I sure do Jarrod. I would never have a rental property again, it is not worth the stress and can be a very costly experience when you get a bad tenants and over the years we have had more bad tenants than good. Good tenants are like hen's teeth.
We had a lovely federation home several years ago which against my better judgement I agreed to let my husband talk me into a rent to buy situation. A very long story, but this deal went pear shaped and involved an 18 month court case and a capital loss on the property, which was trashed, of $137,000.
Not to mention the heartache of seeing the house we had spent years lovingly restoring, plus the stress of a long and drawn out court case.
I would never have a rental property again, and certainly not if you need to have a mortgage on it and you go months and months in court, in the meantime receiving no rent.
We were lucky the home was not mortgaged or we would have lost considerably more
Tenant insurance is not worth the money you pay for it, they find every excuse in the book not to pay out.
Your money is safer in the bank IMO.
I'm so sorry for your experience, @mylittletibies. :(

If you want to get on the rental market I thoroughly recommend the Defence Force Housing. DHA. They inspect the house regularly, do all maintenance, you have rental income even when not occupied, they paint, clean etc prior to end of lease. The catch is there is a lease of 12 years (you can sell during that time, to someone willing to take it over). You pay more fees to the DHA but this includes the maintenance but not structural improvement. We were very happy with them as there were virtually no risk.
Thanks for sharing, @marni! Hopefully no difficult tenants in your case 🙏
 
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