In an attempt to address a mounting rental crisis, with a sub-1% vacancy rate, the South Australian government is introducing ground-breaking reforms that promise to reshape the state’s rental landscape and improve renter affordability.
Scheduled for its second reading, a bill to amend the state’s Residential Tenancies Act 1995 is attempting to balance additional security for renters while continuing to protect the rights of landlords.
Proposed reforms follow the government’s moves in April this year to ban rent bidding and raising the bond threshold, which is understood to have already saved tenants more than $11.5m.
Minister for Consumer and Business Affairs, Andrea Michaels believes amendments the Residential Tenancies Act 1995 represent the biggest reform to SA’s residential tenancy laws in a generation.
“We have consulted extensively with tenants, landlords, and stakeholder groups and we believe that these reforms strike the right balance,” she said.
What’s in store
While encompasses a wide range of provisions, the proposed Bill’s three single biggest changes include:
Firstly, landlords must provide tenants with a prescribed reason to end a periodic tenancy agreement or fail to renew a fixed-term agreement.
For example, prescribed reasons could include plans for demolition, renovation or sale; plans for the landlord to occupy the property; or illegal or abusive behaviour on the part of tenants.
Secondly, for the first time, tenants will be allowed to keep pets in rental properties in SA, but conditions apply.
For example, while renters will still be held liable for any damage caused by the pet, the reforms would also prevent landlords from refusing a tenant’s application to keep a pet.
But they must agree to comply with “reasonable conditions”, which may include keeping the pet outside and having carpets professionally cleaned at the end of the tenancy.
Thirdly, to ensure renters have sufficient time to find alternative digs before their tenancy is up, there’s a provision to increase the minimum notice period for ending a tenancy from 28 days to 60 days.
Having collaborated closely with the government, Andrea Heading CEO of the Real Estate Institute of South Australia (REISA), is confident proposed reforms will deliver a workable solution that better protects the rights and interests of all parties.
Other reforms
Other reforms included within the amendments to the state’s Residential Tenancies Act 1995 include:
- The government will introduce a tenant advocacy service aimed at educating and informing tenants, assisting them in resolving tenancy issues, providing support during tribunal hearings, and advocating for tenant-friendly policies.
- Eligibility has been expanded to ease the financial burden for low-income individuals by offering bond guarantees and rent payments, reducing upfront costs.
- Providing additional support for victims of domestic violence.
- Ensuring rental properties comply with minimum housing standards.
Broader measures
Proposed amendments to the state’s Residential Tenancies Act 1995 follow a range of broader plans announced by the Malinauskas government earlier this year.
Underscoring these plans is the proposed construction of over 500 public homes and 1,000 affordable homes.
The Malinauskas government also plans to abolish stamp duty for first-home buyers of properties under $650,000, introduce a 2% deposit home loan for first-home buyers building a new home, and accelerate the largest residential land release in SA’s history.
