Rent bidding is now illegal in South Australia with fines of up to $20,000 for landlords or agents caught soliciting a higher rental bid.

The State Government has banned the unfair practice as part of a series of reforms addressing rental affordability and improving rights for tenants.

The state’s current low vacancy rate has encouraged ‘rent bidding’ where tenants are encouraged to offer above the advertised price to secure the property.

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

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.

A penalty of up to $20,000 will apply.

This significant reform brings South Australia in line with other Australian jurisdictions.

The State Government continues to act decisively to address the housing crisis with this ban following the move to raise the bond threshold from $250 to $800 – meaning the majority of tenants only have to pay a four-week bond now instead of six.

Targeted consultation is also under way on a range of amendments to the Residential Tenancies Act including to prevent landlords unreasonably refusing a tenant’s request for a pet.

The amendments also include increasing the minimum notice to end a tenancy from 28 days to 60 days and ending ‘no cause’ evictions.