Fire Risks & Rental Properties: What Landlords Should Know in 2026

Understanding how fires start, the type of damage they cause, and how to reduce risk can help protect both your property and your tenants.

Fire Damage: It’s Not Always What People Think

When people think about fire damage, they often assume all heat-related damage falls into the same category — but that’s not always the case.

Fire damage generally refers to destruction caused by direct flames. Issues like smoke staining, soot, melting, or scorching may still cause serious damage, but they’re often assessed differently depending on the situation.

That’s why understanding the cause of a fire — and the type of damage it creates — is so important.

Common Causes of Property Fires

While bushfires make headlines, many rental property fires actually start from everyday household risks, such as:

• Electrical faults or old wiring
• Overloaded power boards
• Faulty or misused appliances
• Heaters and open flames
• Unattended candles or cigarettes
• Lithium-ion batteries

Staying on top of maintenance and tenant safety awareness can significantly reduce these risks.

Lithium-Ion Batteries: A Growing Concern

Lithium-ion batteries — found in e-bikes, power tools, phones, and EV chargers — are becoming a leading cause of house fires.

Fire authorities warn these fires can be sudden and intense, sometimes spreading rapidly when battery cells ignite. Investigations in NSW found lithium-ion batteries were linked to around six fires per week.

Risks increase when batteries are:

• Overcharged
• Damaged
• Charged with incorrect equipment
• Installed incorrectly (such as EV chargers).

Electrical Fires & Maintenance Risks

Electrical issues remain one of the most common fire triggers in rental homes.

Potential hazards include:

• Ageing wiring
• Loose outlets
• Faulty switchboards
• DIY electrical work
• Unlicensed installations

Using qualified tradespeople and scheduling regular safety checks can reduce both risk and liability.

Everyday Fire Hazards Inside the Home

Simple household habits can quickly turn dangerous.

For example, unattended candles remain a frequent cause of residential fires. If a flame spreads to curtains, furniture, or paper, the damage can escalate rapidly.

Other overlooked risks include:

• Cooking fires
• Portable heaters too close to fabrics
• Cigarettes disposed of incorrectly

Encouraging tenants to follow basic fire safety practices can make a major difference.

Bushfire Risk Still Front of Mind

Bushfires continue to impact Australian communities each year, particularly in outer suburban and regional areas.

Recent summer fires in Victoria alone resulted in:

• Around 400 homes lost
• More than $200 million in insured losses
• Over 3,000 claims lodged
• An estimated 30% of property claims being total losses

Even properties not directly in bushland zones can face ember attacks or radiant heat damage.

Practical Steps Landlords Can Take

Reducing fire risk starts with consistent property maintenance. Electrical systems should be kept up to standard, damaged fittings repaired promptly, and smoke alarms tested regularly to ensure compliance and tenant safety.

For bushfire preparedness, landlords should manage outdoor risks by clearing gutters, removing dry vegetation, trimming trees near the home, and sealing gaps where embers could enter.

Inside the property, compliant smoke alarms are essential. Additional measures such as fire extinguishers or fire blankets — particularly in kitchens — can further improve safety. Where possible, fire-resistant building materials can also be considered during upgrades or renovations.

All electrical and structural work should be carried out by licensed tradespeople. Avoiding DIY or unqualified repairs helps minimise fire risk and ensures the property remains compliant.

Communication Matters

Open communication with tenants is a key part of fire prevention.

Encourage tenants to:

• Report electrical faults immediately
• Use appliances safely
• Follow battery charging guidelines
• Understand evacuation plans in bushfire-prone areas

When tenants feel safety is prioritised, they’re more likely to raise concerns early — before small risks become major incidents.