On 1 July 2024, the South Australia Government implemented a variety of rental reforms to better protect the rights and responsibilities of investors and tenants.

Now, the vast majority of investors are smart creatures and use the services of professional property managers, who will interpret these reforms and communicate them directly to you.

However, the smartest investors make sure they also understand any legislation changes that may impact their investment property or portfolios.

Below is a precis of some of the new SA rental reforms for your educational purposes. You can also access the official fact sheet with all the latest changes online.

• Requiring a prescribed ground for landlords to terminate or not renew a fixed term or periodic tenancy

A landlord requiring possession of their property can end a periodic tenancy under section 81 of the Residential Tenancies Act 1995 (Act) by giving at least 60 days’ notice to the tenant because:

• possession is required for demolition
• possession is required to carry out repairs or renovations that can’t be done with reasonable convenience while the tenant remains in the premises
• possession is required for occupation by the landlord, their spouse, child, parent or the spouse of a child or parent
• The landlord needs to give vacant possession to a purchaser

• Extending the notice period for landlords not renewing a fixed tenancy from 28 days to 60 days

60 days’ notice is required by a landlord terminating a fixed term tenancy agreement at the end of the fixed term on a prescribed ground (previously 28 days).

When a tenant receives notice that their tenancy will not be renewed, they may vacate their rental property within the notice period and not be liable to pay rent after they vacate, providing they have given the landlord 7 days’ notice of their intention to vacate early.

• Allowing tenants to have pets in rental homes, subject to approval and reasonable conditions

Tenants applying to keep a pet in a rental premises can no longer have their application refused unless the refusal is based on a ground listed in the Residential Tenancies Act 1995 (the Act).

A landlord can no longer simply state ‘no pets allowed’ and also can’t charge a separate pet bond. But a landlord can impose reasonable conditions having regard to the type of pet and nature of the premises.

• Requiring compliance with minimum housing standards

Rental premises must comply with minimum housing standards at the beginning of a tenancy.

These standards are set under the Housing Improvement Act 2016 and the Housing Improvement Regulations 2017. If they don’t, the tenant can request the landlord/agent undertake urgent repairs to meet the standards. During occupation a tenant may also serve a notice of termination if the premises:

• doesn’t comply with the minimum housing standards
• is destroyed totally or to an extent it’s unsafe.
  
  
• New options supporting tenants experiencing domestic abuse

A tenant experiencing domestic abuse can give notice of termination (accompanied with the relevant evidence prescribed in regulation 19B) or can terminate the tenancy if an intervention order is in force for their protection, or the protection of someone else who lives at the premises – against a person who normally lives at the premises.

The termination notice can specify a termination date on or after the day that notice is given (which might be before the end of the fixed term). Landlords/agents are required to deal with evidence and information received with this notice in a confidential manner.

• Allowing minor alterations or safety modifications to premises (to be removed at end of tenancy)

A landlord/agent can’t unreasonably withhold consent to alterations or additions to the premises that relate to:

• minor alterations or additions
• reasonable changes necessary for disability assistance
• reasonable changes necessary for mobility or access needs relating to age.

Requests to the landlord/agent should detail:

• the nature of the alterations and modifications
• information on how the property can be restored back to its former state at the end of the tenancy
  .

The landlord’s/agent’s consent must be given in writing.

Earlier rental reforms

Several changes were made in 2023 and in March 2024, including limiting rent increases to just once a year. Some of these key reforms included:

• More affordable rental bonds

Residential bonds were reduced for most new tenancies since 1 April 2023 to a maximum of 4 weeks’ rent, compared to 6 weeks’ previously.

This followed a rise in the bond threshold applying to properties for which tenants pay $800 or less in weekly rent. Those who pay more than $800 per week can still be subject to a landlord’s bond request of the equivalent of up to 6 weeks’ rent. 

• Soliciting of rent bidding banned

Landlords/agents must advertise premises at a fixed amount and must not solicit or otherwise invite an offer for higher rent.

This means landlords are no longer able to advertise properties with a rent range, put properties up for rent auction, or solicit offers over the advertised rental price.

Additionally, where a third party is facilitating tenancy applications, any rating or assessment of a prospective tenant must not be based on an offer of higher rent.

• The frequency of rent increases limited to once in a 12-month period

Rent cannot be increased more than once in a 12-month period.

If a tenancy agreement changes from fixed to periodic the rent cannot be increased within 12 months of the original agreement starting, or the last increase.

Rent also cannot be increased by mutual agreement within 12 months of the agreement starting, or last increase.