Dear Client
SA RENTAL REFORMS UPDATE
Changes to be phased in from 1 March 2024 – read what’s happening when
The South Australia Government will soon be making changes to better protect tenants under changes to South Australia’s rental laws (their words not ours). The reforms have also been designed to balance the rights of landlords (again their words not ours).
The Residential Tenancies (Miscellaneous) Amendment Act 2023 was passed by the Parliament of South Australia on 29 November 2023. It has many new measures that require preparation before they can be introduced.
A phased introduction of the initiatives will commence on 1 March 2024.
What is changing on 1 March 2024
Rental reforms that don’t require significant adjustments to industry or community practices will commence first.
These include:
• ensuring rent can’t be increased more than once within 12 months, even when mutually agreed during the lease
• creating penalties for existing offences including —
- requiring prospective tenants to be notified if the premises is for sale and
- existing tenants to be given 14 days’ notice when a property is to be sold
• tougher penalties for all offences including —
- charging excessive rent or rent in advance
- discriminating against tenants with children
- keeping inadequate records of payments
- interfering with tenants’ privacy that amounts to harassment
- incorrectly listing a tenants’ history on a tenant database (‘black list’)
- not lodging a bond
- entering into an agreement to evade the operation of the Residential Tenancies Act 1995
- all residential parks offences
• clarifying that landlords can’t unreasonably refuse tenants sub-letting rental properties and may only seek reasonable expenses arising from the sub-letting of rental properties.
A summary of the changes to penalties and expiations is available on the Consumer and Business Services website.
What is changing later in 2024?
Remaining reforms will commence at dates yet to be set later in 2024 because they require transitional arrangements, prescribed regulations and time for industry to prepare for them to start.
These include:
• requiring prescribed grounds to terminate or not renew a tenancy
• extending the notice period to end a tenancy from 28 days to 60 days
• allowing tenants to have pets in rental homes with reasonable conditions
• protecting prospective tenants’ information
• ensuring rental properties comply with the minimum housing standards
• providing additional support for victims of domestic violence
• limiting the number of routine inspections per year
• allowing minor alterations or safety modifications to premises (to be removed at end of tenancy)
• enabling bond lodgements directly by tenants via the online (RBO) system
• phasing in the need for replacement fixtures to meet energy and water saving standards
• more protections for renters living in rooming houses.
You will be advised of the timeframes for commencement of these provisions as soon as they are determined.
2023 Rental Protections
The forthcoming changes follow last year’s priorities that limited most rental bonds to 4-weeks’ rent (previously 6 weeks), banned rent bidding and protected tenant information.
Further Information
The Information Guide that a landlord or agent must give the tenant when a residential tenancy agreement is entered is being updated to include changes from 1 March 2024
You can read more on the Consumer and Business Services website.
PRIME MINISTER ADDRESSES GREENS’ PRESSURE ON NEGATIVE GEARING
The future of Labor’s shared equity home buying scheme is in doubt as the legislation could be held up by the Greens.
The Help to Buy program was one of Prime Minister Anthony Albanese’s key housing promises heading into the 2022 federal election, but passage of the legislation to put the scheme into practice now might rest on whether the government is willing to negotiate on its negative gearing stance.
Greens leader Adam Bandt said the party would be demanding significant changes to negative gearing and the capital gains tax discount as the Labor party sought Greens members’ support of the legislation.
“In negotiations with the government over the Help to Buy legislation, we’ll push Labor to end the tax handouts for big property investors, freeze rents and build public housing to help renters and first home buyers,” Mr Bandt announced last week.
During a press conference in Nowra on Sunday, 19 February, the Prime Minister was pressed on whether the government would negotiate with the Greens to ensure the policy passes Parliament.
Mr Albanese appeared to suggest that he was prepared to see the program shelved instead of bowing to the pressure.
“The Greens can vote for it, or they can vote against it. If they vote against it, they’ll be voting against helping Australians into home ownership. It’s as simple as that,” the Prime Minister said.
“I think people are seeing through the Greens, where they offer nothing positive,” he added.
Mr Albanese expressed his confidence in the ability of the scheme – should it become a reality – to make it easier for Australians to purchase homes, given that similar statewide programs are already in operation in Western Australia, Victoria and NSW.
He accused the Greens of dancing around the issue of the efficacy of the scheme that their demands run the risk of torpedoing.
“This is a scheme that will work. And I noticed that the Greens won’t talk about this particular legislation. They’ll talk about something else, well, just like they held up support for increased investment in social homes, in public housing and affordable housing, now they’re saying they’re going to hold up increased home ownership,” Mr Albanese said.
He opined that the Greens lacked concrete plans to address the housing issues plaguing the nation.
“We have a comprehensive plan for housing; they just have slogans, which is why they’re a party of slogans. We’re a party of government that’s interested in making a difference,” Mr Albanese said.
Prime Minister addresses Greens’ pressure on negative gearing – Real Estate Business
ADELAIDE PROPERTY PROJECTIONS: SUBURBS IN THE SPOTLIGHT FOR 2024
The City of Churches has provided for property owners in recent times, and the wins are forecast to keep coming next year despite rising affordability challenges.
“Since the onset of COVID in March of 2020, Adelaide home values are up almost 51%,” CoreLogic research director Tim Lawless said on the release of the property data group’s December market update.
“While this is probably good news for homeowners, affordability pressures are becoming more challenging across the city.”
The latest affordability metrics saw Adelaide boasting the second-most unaffordable housing market of the nation’s capital cities.
Despite that, however, the immediate future looks bright for the South Australian capital.
NAB is forecasting Adelaide home values to be a front runner next year, rising 6.2% over the coming 12 months.
That would see it performing in line with dwelling prices in Perth and just behind those of Brisbane – tipped to rise 6.5% in 2024.
STAFFING CHANGES
We would like to advise that Alex Tittoto and DB Philpott have amicably parted ways. Over the last few years Alex has worked closely with Benjamin and David Philpott in the management of your property.
The management team wishes Alex well in his future pursuits.
We have reassigned those properties managed by Alex to one of our existing team and you will come to know these managers over the next few weeks.
Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate
