EBM RentCover Managing Director Sharon Fox-Slater looks at recent changes to tenancy legislation across the country and how these changes impact landlord insurance.
It is safe to say that property management professionals are constantly kept on their toes.
The ups and downs of the property market, economic shifts, political changes, environmental factors, and evolving landlord and tenant expectations all play a role.
Then there is the ongoing challenge of keeping up with legislative and regulatory reforms.
In recent years, almost every state and territory has amended its residential tenancy laws or related legislation.
These changes often have a flow-on effect for landlord insurance.
Throughout 2024, significant reforms came into effect and more are coming, including:
Portable bond scheme
NSW is set to become the first jurisdiction to implement a portable bond scheme later this year.
The scheme will enable tenants to digitally transfer their bond from one rental property to the next, without having to pay a new bond.
This means that tenants will not have to wait for a bond to be released or pay another bond when moving.
The scheme is an agreement between tenants and the NSW Government.
Under the scheme, the Government will pay any agreed bond claim to the landlord and recover the amount from the tenant.
Victoria is also looking at introducing a portable bond scheme (date yet to be advised).
And speaking of bonds, WA is set to streamline its bond release process by allowing a tenant, landlord or agent to ask for the release of the bond.
Meanwhile, Victoria is aiming to eliminate unreliable bond claims by requiring rental providers to provide evidence to support any claim against the bond.
Insurance note: Most landlord insurance providers, including EBM RentCover, require landlords to collect a bond equivalent to four weeks’ rent as a condition of insurance coverage.
At the time of writing, detailed information on how the portable bond scheme would work had not been released.
Collecting a bond will still be a requirement for insurance cover. It is expected that landlords/agents will need to ensure that tenants using the scheme have fulfilled their bond obligations and the monies held are sufficient and applied to the new lease agreement to satisfy cover requirements.
Pets
Tenants in NSW can seek permission to keep a pet at the rental property and landlords can only refuse the request on specific grounds. Landlords will need to respond to a pet request within 21 days.
If they do not respond, the pet will be automatically approved. This change came into effect on 19 May 2025.
Insurance note: It is the responsibility of the tenant to repair any damage caused by their pet.
But, as we know, sometimes tenants do not do what they are supposed to, and landlords are left footing repair bills.
When faced with this, owners and agents may look to the landlord’s insurance policy – but will often be left wanting.
No grounds evictions
As of 19 May 2025, landlords in NSW need to have a valid reason to end a lease.
Landlords now need a reason to end a tenancy for both periodic and fixed term leases.
An end to “no reason evictions” will also come into effect in Victoria on 25 November 2025.
Insurance note: It is a condition of landlord insurance that the landlord (or their representative, such as a property manager) must act legally or it could jeopardise any claim made against the policy or even the policy itself.
So, for example, if a claim needs to be made for loss of rent, it is important that the legal eviction process has been followed.
Minor modifications
From 1 May 2025, a new process for Queensland tenants to request fixtures and structural changes came into effect.
Tenants must use the correct form to request to make changes and landlords must respond to the request within 28 days.
Insurance note: Any type of work at the property can increase the risk of accidental damage.
Landlords and agents should check they have accidental damage protection – some insurers only offer this as an additional level of cover or do not offer it at all.
This could come in handy if the tenant fails to return the premises to its original state (if required to do so) at the end of their tenancy, or if the landlord discovers that the tenant made unauthorised modifications that need to be remediated.
Notice periods
Notice periods for ending a lease were increased in NSW as of 19 May 2025.
Come November 2025, the required notice period for rent increases and eviction notices in Victoria will increase from 60 to 90 days.
Insurance note: As with evictions, understanding notice periods is important when it comes to claims for loss of rent.
Failing to follow the correct procedure and timeframes could jeopardise any insurance claim and leave the landlord out-of-pocket.
The latter part of 2025 is set to see more changes come into effect, including:
Rent increases
In November 2025, there will be tighter scrutiny from Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal on rent increases.
Rental providers will need to justify rent increases based on property improvements, comparable market rates, or specific allowable reasons.
Insurance note: Aside from the obligation for the landlord to act lawfully or risk claims being impacted, it is also important that the landlord’s insurer is notified when the rent is changed.
landlord insurers have a limit on the amount of weekly rent they automatically cover (at EBM RentCover it is $1,500 per week).
If a rent increase lifts the weekly payment above the threshold, the insurer will need to agree to cover the new amount of rent and may impose conditions on their agreement.
Minimum standards
In November 2025, new minimum standards will come into effect in Victoria. Properties will be required to meet certain standards before being advertised, not just when a renter moves in.
This covers safety, heating, air-conditioning and insulation, which are in addition to the minimum standards added in 2021.
Insurance note: The condition of a premises can have a direct impact on whether an insurer will take on the risk and offer cover, and the introduction of minimum standards may contribute to an insurers’ assessment of the property’s risk profile.
Of course, there are other changes set to come into play and no doubt more will be devised to make sure we all stay on our toes!
If you have any questions about EBM RentCover policies, reach out to your Relationship Manager or get in touch about partnering with us.
