Last year was a big one for EBM RentCover. Around 6,000 claims were lodged by landlords, resulting in more than $43.5 million paid out, covering everything from repair costs to lost rent while properties were off the market.
Some claims related to events that were quite unpredictable (which is exactly why landlords have insurance), and others literally out of control (like bushfires and cyclones).
Many others were familiar stories – damage caused by tenants (or their pets), storms and water, rental arrears and even legal liability claims.
The reality is that some of these claims could have been avoided, along with that dreaded phone call to the landlord.
So how do you spot these kinds of risks in rental properties, stop them turning into insurance claims and make your landlord eternally grateful?
In short, how do you get ahead of the game on issues like maintenance, security and other hazards?
Four critical opportunities to get ahead of the game include:
- Before tenancy
- Tenant screening and selection
- Regular inspections through a ‘risk lens’
- Good communication throughout the lease with tenants and landlords.
Before tenancy
The period before a tenancy begins is one of the most important times to identify and address potential risks.
When a property is vacant, it allows for a thorough assessment of its condition, checking essential services such as plumbing, heating and cooling, as well as safety and security features.
While initial management inspections play an important role, they are not a substitute for a comprehensive building inspection or professional advice on the property’s overall condition and suitability for rent.
If an issue arises after a tenant has moved in, it can quickly make a property uninhabitable, leading to repair delays, tenant disruption and lost rent.
Addressing maintenance and repairs upfront helps reduce risk and protects rental income from the outset.
Tenant screening and selection
The competition for rentals remains intense across Australia, with rental vacancy rates at 1.4% as we entered 2026, according to SQM Research.
Despite the queues of tenants for rentals, it is quality, not quantity, you are after.
While AI may be helpful with the initial screening of tenants (and more property managers are using the technology), the personal interview and informal chat while you are showing a property is where you can gather great insights and indicators of how reliable the tenant might be in the longer term.
While there are legal limitations to what you can ask (including anti-discrimination and privacy laws), a prospective tenant will often drop hints about themselves and their lifestyles in normal conversation.
If the prospective tenant is not happy to provide information and does not chat readily, that could raise flags.
Keep your antennae up and have your observation skills honed, and you could reduce the risk of losses and save yourself and your landlord a lot of heartache.
Regular inspections through a ‘risk lens’
The value of a rental property inspection is not so much in the frequency as in the lens through which you view the property.
A ‘risk lens’ that assesses immediate and potential concerns can lead to preventative measures that save stress, inconvenience and claims down the track.
While the purpose of the inspection is to ensure the tenant is fulfilling all their obligations under the lease, it is also a time to listen to any concerns they may have and be keenly observant of any risks or potential risks around the property.
The most common reasons for landlord insurance claims provide a handy reminder checklist:
- Storms: There is not much you can do about the storm itself, but you can spot things around the home that might make it more susceptible to damage.
They include leaves, debris or rust in the gutters or downpipes, overhanging tree branches, damaged windows or doors, and any sign of leaks in the house.
You might also want to get the roof checked for leaks and other damage, and, if there is garden furniture or other items that could fly away, a chat with the tenant about their awareness and preparedness is helpful. - Water damage. As well as checking the roof, you can look for mould, leaks or moisture build up inside the house, check for rising damp in walls and foundations, and for any sign of rot in wooden decks, railings and windowsills.
Running the water throughout the house and ensuring it drains away easily is another good check that pipes are clear and doing their job.
If in doubt, call in a licensed plumber to check and repair anything of concern. - Lithium-ion (LI) batteries. LI batteries are rocketing up the claims charts and are now a major cause of house fires, and even death.
They are everywhere in homes these days (smartphones, laptops, digital cameras and watches), but items to watch out for include electric cars, e-bikes and e-scooters, power tools and lawn mowers, especially if they are being kept inside the home or attached garage.
It could be another opportunity to ensure the tenant is aware of the dangers and what measures can be taken to keep themselves and the property safe. - Legal liability. Tenant-related damage, whether accidental, malicious or intentional (EBM RentCover is unusual in covering all three), is probably already high on your priority list during any inspection, but what might be less front-of-mind is the issue of legal liability.
If a tenant were to hurt themselves at the property, there may be a claim against the landlord, so watching out for any hazards inside or outside the property (for example, trip hazards, electrical sockets, uneven pathways, ageing hot water systems, hanging cords, damaged pool fencing) is paramount.
If you spot a hazard for which the landlord is responsible, fix it fast, using licensed trades.
Good communication
Good communication is a major risk management strategy – setting expectations, maintaining open lines of communication and being responsive to both tenants and landlords.
Looking after the relationships can save confusion or misunderstandings and prevent risk, or at least give you the forewarning you need to minimise damage.
This is especially true when it comes to issues like rent arrears and payment issues which can impact even the best of tenants.
According to SGS Economics and Planning’s Rental Affordability Index 2025 published in November, renters have hit their limit.
“In the least affordable parts of the country, including Perth, Sydney, regional Queensland and regional New South Wales, even average earners are pushed into rental stress, spending more than 30 per cent of their income to keep a roof over their head.”
If the rent is late a little too often or there is even the slightest hint of financial stress, opening the conversation can allow you to discuss a way forward, before absconding is the tenant’s only solution.
Tenants who feel comfortable being in touch, and know you will respond positively, are also more likely to alert you promptly to damage or maintenance issues where early attention could save time, money and potentially injury.
On the other hand, landlords are always keen to know how their property is faring and hate surprises.
So, whether it is good news or not, staying ahead of the game on communication with landlords is wise.
Setting expectations from the start, establishing a regular reporting regime, sharing news and information about the rights, responsibilities and risks for landlords, and choosing and using your communication methods (email, phone, letter, text, WhatsApp) thoughtfully can all contribute to a happy, long-lasting relationship.
Your EBM RentCover Relationship Manager will always be there to help you with all things risk and insurance related, especially if a claim arises, but, in the meantime, property managers can do a lot to protect landlords and potentially help avoid the claim altogether (or reduce its severity).
