The recent article ‘Why we should throw out no cause rental evictions’ from Shelter SA correctly identifies that there is a real rental crisis facing South Australians, but fails to acknowledge its cause.

Firstly, it is misleading to refer to the Government’s proposed reform as abolishing no cause rental eviction. While this is emotive language designed to give the impression that tenants are arbitrarily being turfed out onto the street, it is important to remember that the landlord and the tenant have entered into a contract and both parties have agreed on the term, usually six or 12 months. The contract ends on the expiry date and neither party has any further obligation to the other. It is simply the culmination of the mutually agreed contract and either party is free to move on.

An eviction is a Tribunal sanctioned process whereby ultimately a bailiff may be called out to physically eject the tenant from the property. A landlord simply choosing not to renew a tenant’s lease is not an eviction – it is simply the end of a contract.

The article states that “it is not fair to enter into a legal agreement that can be broken by one party without a reason”. This is simply not true. Nobody is breaking any legal agreement. The legal agreement is simply coming to an end.

The article further states that “this unacceptable situation places unnecessary stress on tenants who are too scared to ask for simple repairs and maintenance in case they get evicted”. While it is true that this may be the case, the proposed reforms include a retaliatory clause that enables a tenant to seek redress if the landlord is taking retaliatory action against them because they have or are seeking to exercise their statutory rights.

High risk applicants will find it difficult to secure a tenancy, as landlords will fear that they could be securing a ‘tenant for life’ and will develop far more stringent tenant selection criteria and screening processes than ever before

The unfortunate consequence of abolishing no cause non renewals will be that it will impact on tenants far more than landlords. It will make it much harder for tenants to secure a property.

High risk applicants will find it difficult to secure a tenancy, as landlords will fear that they could be securing a “tenant for life” and will develop far more stringent tenant selection criteria and screening processes than ever before. Submissions provided to REISA have clearly indicated that landlords will not be giving a chance to first time renters or tenants who perhaps have made a mistake in their past.

A compromise that could be reached to better balance the interests of both the landlord and the tenant would be to facilitate a 12-month probationary period. This would give time for the landlord and tenant to test their relationship and decide whether or not they wish to continue.  Once the probationary period is over, then the abolition of no cause non renewals could take place.

It is also imperative to remember that this reform – as well as all the others – will not solve the rental crisis for South Australian renters.

Until we have more properties available on the market and landlords not disincentivised to invest in property, the crisis will continue. These reforms, while important, will do nothing to solve the crisis.

Paul Edwards is a legislation and industry adviser to the Real Estate Institute of South Australia