SA to restrict rental increases from 1 March

From 1 March 2024, reforms will come into place around ensuring rent can’t be increased more than once in a 12-month period, even when mutually agreed, among other changes.

All of the reforms coming into effect from the 1 March date “don’t require significant adjustments to industry or community practices”, according to a statement from the state government.

A fact sheet from the state government noted that alongside the rent increase clause, landlords will be unable to unreasonably refuse tenants sub-letting rental properties and may only seek reasonable expenses arising from the sub-letting of rental properties.

The changes will also see penalties created for existing offences, including the requirement that prospective tenants be notified if premises are for sale, and existing tenants e given 14 days’ notice when a property is to be sold.

Tougher penalties will also come into play for charging excessive rent or rent in advance, discrimination against tenants with children, keeping inadequate payment records, interference with tenants’ privacy that amounts to harassment, incorrectly ‘black listing’ a tenants’ history on a tenant database, not lodging bonds, as well as entering into agreements to evade the operation of the Residential Tenancies Act 1995.

For other reforms requiring transitional arrangements, prescribed regulations and industry preparation, later dates in 2024 will become applicable when known.

These include: A requirement for prescribed ground to terminate or not review a tenancy, extending the notice period to end a tenancy out to 60 days, and allowing tenants to have pets with reasonable conditions.

Further reforms will also come in around limiting the number of routine inspections per year, allowing minor alterations or safety modifications to premises, enabling bond lodgements directly by tenants and phasing in the need for replacement fixtures to better meet energy and water saving standards.