The South Australian Government has banned rent bidding as part of a series of reforms addressing rental affordability and improving rights for tenants.

The state's rental vacancy rate of below 1 per cent had encouraged the practice of rent bidding, where tenants are encouraged to offer above the advertised price to secure the property.

With the rent bidding ban in effect from Friday 1 September 2023, landlords and agents must now advertise properties at a fixed amount and must not solicit or otherwise invite an offer for higher rent.

Landlords and agents also cannot advertise properties with a rent range or put properties up for rent auction.

When 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 to those caught soliciting higher rents.

The news has been welcomed by renters, including Ariba Siddiqi who said she had firsthand experiences of the frustrations associated with trying to find a rental when she moved to South Australia from Victoria in 2021.

"I often missed out on securing a property because other tenants were encouraged to offer more rent when they submitted their application," Ms Siddiqi said.

"It creates unfair advantage and wastes tenants' time, especially when they have to take time out of work hours to visit a place for inspection."

The South Australian Government has introduced multiple initiatives to address the housing crisis. This includes raising the bond threshold from $250 to $800, so most tenants only need to pay a four-week bond instead of six.

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

Other measures, including abolishing stamp duty for first home buyers purchasing new homes and fast-tracking land releases, are also helping to improve housing outcomes for South Australians.