Renters in South Australia could be next to see the end of the dreaded ‘double bond’ problem amid growing calls from around the country to help ease financial pressure on tenants.
South Australia’s state Labor government has promised to introduce portable rental bonds if re‑elected at the upcoming March 21 state election.
It would allow tenants to transfer their bond between properties rather than paying a new bond upfront while waiting for their old one to be refunded.
Renters and other groups from across Australia have been calling on authorities to modernise how bonds are managed, as affordability pressures continue to bite for renters.
It comes as Victoria prepares to roll out its own portable bond scheme this year, and other states and territories weigh up similar changes.
REA Group senior economist Anne Flaherty said the move would make moving easier for tenants.
“There is often a period of overlap between a renter receiving their bond from a previous lease and the need to provide a bond for a new lease,” she said.
Renters often pay a new bond upfront while waiting for their old one to be refunded. Picture: Getty
“The introduction of portable rental bonds will make moving easier by reducing upfront costs and providing greater ease of mind for renters.”
Tenants face a tough rental market in South Australia, where vacancy rates for Adelaide and regional South Australia sit below historic averages at 1.45% and 1.89%, respectively.
On top of that, home prices continue to surge higher, with the median house price for Adelaide rising 13.6% to $996,000 during the year to January, according to latest PropTrack Home Price Index.
As home prices climb higher, tenants are likely to spend more renting as they save enough money for a home deposit.
There are few rental homes available in Adelaide, where the rental vacancy rate was just 1.45% in January. Picture: Getty
Hannah MacLeod, executive director SA/NT at the McKell Institute, said the scheme was a smart step for the state.
“For many households, the overlap in bond payments can mean taking on debt or delaying a move to a safer or more secure tenancy,” she said.
“This practical, low-cost reform strengthens liveability and when skilled workers or young families are deciding where to live, the ease and fairness of the rental system is a key priority.”
However, the McKell Institute has called on the government to go further and introduce a renters’ dividend where tenants receive interest earned on their bond, as well as longer-term leases that provide greater security and stability.
“Portable bonds are a major step forward but we will continue to advocate to ensure renters receive a fair return on their own money and create a rental market where longer leases are the norm,” Ms MacLeod said.
REA Group senior economist Anne Flaherty says portable rental bonds will make moving easier for tenants.
The portable bond scheme will work by introducing a government guarantee model where the government underwrites the value of the existing bond while the tenant transitions to their new rental property.
SA Premier Peter Malinauskas said renters had been forced to stump up for a new bond before their old one comes back for too long.
"We will end this undue stress, because a fair rental market isn’t one where renters are punished just for moving from one house to another,” he said.
“A genuinely portable bond means no more double payments, no more financial stress, just because you're changing your address.”
Australia’s rental vacancy rate sat at 1.48% last month, sitting 0.85 percentage points lower compared to five years ago, according to the latest realestate.com.au Market Insight report.
Ms Flaherty said conditions for Australian renters had improved over the past three months, although they remain largely unchanged from a year ago.
“They are significantly below the conditions renters faced during the pandemic five years ago when the national vacancy rate was sitting at 2.3%,” she said.
“While the pace of rent growth has slowed across most markets over the past year, continued low vacancy rates are expected to drive rents to new highs in 2026, particularly in markets where supply is constrained, such as Hobart, Perth, and Brisbane.”
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