QBE research reveals one-third of landlords could face financial strain within weeks of losing rental income

New research from QBE reveals that 38% of landlords could start facing financial difficulty if their rental property was unliveable, or rent wasn’t paid for more than 2-6 weeks. Despite this, only 56% have landlord insurance, which can provide cover for loss of rent and rent default by their tenant.

A survey of 500 Australian landlords conducted in April 2025 highlights the financial risks landlords face if their property is damaged or tenants fall behind on rent. It also shows the importance of insurance in helping to protect rental income and long-term investments.

Jo Hatcher, Managing Director, Consumer for QBE Australia Pacific said that the findings indicate a gap between landlords’ expectations and the actual level of protection they have.

“Many landlords assume home insurance will cover their rental property, but the reality is that it might not – especially for things like loss of rent or tenant-related damage.” Ms Hatcher said.

“This gap can leave landlords in a tough spot if something goes wrong. The right insurance can mean the difference between a short-term setback and long-term financial strain.”

The findings also reveal that more than one-third of landlords have experienced tenants falling behind on rent, while 30% have dealt with tenant damage. Yet, 17% of landlords found the shortfall wasn’t covered because they didn’t have the right policy or hadn’t opted for rent default cover.

“While many landlords are diligent in managing their properties, these findings highlight the importance of checking that your insurance matches your needs. Without the right cover in place, landlords can be left financially exposed if their tenants fall behind,” Ms Hatcher said.

Awareness of rental inspection and maintenance schedules is essential for landlords to stay on top of potential risks and protect their investment, especially as 70% rely on property managers or real estate agents to manage their property.

While more than 80% of landlords knew that their property was being inspected quarterly or every six months, almost 20% only had annual inspections, didn’t have regular inspections, or weren’t sure of the arrangements.

"Regular inspections are key to protecting your investment, especially when unexpected issues arise. Keeping a close eye on your property helps avoid small problems becoming major headaches,” Ms Hatcher said.

Ensuring the right insurance cover is in place can help landlords feel more secure about their property and rental income.

“Landlord insurance isn’t just a safety net,” Ms Hatcher said. “It’s a practical way to help protect your property and manage the financial risks that come with renting it out.”

For the full research findings, visit www.qbe.com/au/news/landlord-survey-2025