Why property inspections matter

Regular inspections do not just help you check your rental is being looked after – they can also safeguard your landlord insurance.

Whether you handle inspections yourself or rely on a property manager, it is important they are done properly and often. If you usually leave it to your agent, consider joining occasionally to see first-hand how your property is faring.

Inspections must follow your state or territory’s tenancy laws (Victoria, Tasmania, New South Wales, Queensland, Western Australia, South Australia, Australian Capital Territory, Northern Territory). This includes how often you can inspect, how much notice you must give (usually at least seven days in writing), and when inspections can take place (not on Sundays or public holidays, and generally within set hours). Remember: while you own the property, it is still your tenant’s home. Respecting privacy and following the rules avoids disputes and potential tribunal action.

Inspections are also a chance to discuss issues. Listen to tenant concerns, be ready to address maintenance, and document everything. Written records of requests, agreed actions, and even photos provide valuable protection if you ever need to make an insurance claim or recover bond money.

So, what should you be looking for during your next inspection?

The inspection should cover the condition of the premises inside and out (unless the exterior is the responsibility of a body corporate or similar). 

You should look at the condition of each area and record it (in writing, photos/video), noting any damages or issues with comments to describe the state of repair or cleanliness. Be sure to review the lease agreement and prior inspection reports before conducting the inspection to note required actions as per the agreement and to compare the condition over time.

Compliance with any specific clauses in the lease agreement should also be checked, for example no smoking clauses or conditions associated with keeping a pet at the property. Note: EBM RentCover is one of the few landlord insurance providers that automatically provides cover for pet damage (up to $70,000). While a domestic pet does not need to be named on the lease, it must be owned by a tenant. It is also a condition of cover that the premises are inspected within six months of the pet being allowed to live at the rental, and at least annually thereafter.

If there is a significant breach of the lease agreement, follow the process for issuing breach notices outlined in the relevant legislation.

It would also be prudent to look out for any indications that your tenants might be engaging in activities that could impact or even invalidate your insurance, such as: 

• Sub-letting. 

• Using the rental for Airbnb. 

• Operating a business from the premises. 

• Misuse of property (as this could present legal liability issues). 

• Illegal operations.  

If you find your tenants are risking your insurance, remind them that those activities are not permitted and they are in breach of their tenancy agreement (if you suspect criminal activity, do not confront the tenants, contact the police). 

Property inspections give you the opportunity to assess the condition of your investment and how well tenants are treating it. Conducting inspections lawfully and regularly can help prevent disputes, identify repair and maintenance needs, and ensure the property remains safe, habitable, and protected in value. They may also provide legal protection in the event of disputes or claims.

From an insurance perspective, most landlord insurance contracts require you to take steps to prevent further loss or damage — so spotting issues early and addressing them promptly is essential to protecting both your property and your cover.

To summarise, inspections can help safeguard your landlord insurance by helping to ensure you meet your obligations for cover, minimise risks that could lead to an insurance claim, and have useful documentation to support any claims you may make in relation to damage. Please reach out to our Expert Care team if you have any questions about policyholder obligations for cover or claiming in EBM RentCover landlord insurance policies.