Fire Risk Alert: Lithium-Ion Batteries in Rentals
By Kellie Andriessen
As a property manager, one of my key responsibilities is to help landlords protect both their investment properties and their tenants. One issue that has been steadily rising in recent years—and one I feel every landlord should be aware of—is the fire risk associated with lithium-ion batteries.
From smartphones and laptops to cordless vacuums, power tools, e-bikes, and even electric vehicles, lithium-ion batteries have become part of our everyday lives. They’re efficient, rechargeable, and convenient—but they also present serious risks if not used, stored, or charged correctly.
Why Are Lithium-Ion Batteries a Concern?
The statistics are sobering. In 2023 alone, more than 1,000 fires in Australia were linked to lithium-ion batteries. These incidents are not isolated; fire brigades across the country are reporting a growing number of call-outs due to battery-related fires.
So what causes them? Fires typically occur when batteries:
- Overheat during charging
- Are used with the wrong charger
- Suffer physical damage (such as being dropped)
- Are charged near flammable materials (like bedding, couches, or curtains)
When these batteries fail, the results can be devastating: explosions, toxic gas release, severe property damage, and tragically, sometimes loss of life.
What This Means for Your Investment Property
If you own a rental property, it’s highly likely your tenants are using multiple devices powered by lithium-ion batteries. Phones, laptops, vacuums, power tools, e-scooters, and e-bikes are often charged inside homes, frequently overnight, and sometimes in unsafe locations such as on soft furnishings.
The rise of electric vehicles (EVs) adds another layer of complexity. With over 180,000 EVs now on Australian roads, more tenants are requesting EV charging stations or charging large batteries at home. While this reflects progress in greener transport, it also raises safety and compliance challenges for landlords.
EV Chargers: A Word of Caution
If your tenants request an EV charger, it’s important to carefully consider the implications before giving approval.
- Safety and compliance – EV chargers must be installed by licensed professionals. Poor workmanship can significantly increase the risk of fire.
- Insurance risks – In the event of a fire caused by faulty installation, insurers may deny claims.
- Strata requirements – In units or townhouses, approval from the owners’ corporation is generally required, which can be a lengthy process.
The takeaway? Don’t rush into approval. Ensure proper checks, professional installation, and documented compliance before any EV charging unit is installed in your rental property.
How Landlords Can Reduce Risk
While we can’t eliminate the use of lithium-ion batteries, there are practical steps landlords can take to reduce risk and protect their investments:
- Smoke alarms – Ensure working smoke alarms are installed and compliant with legislation. These remain the first line of defence in any fire.
- Fire equipment – Consider supplying fire blankets or an F-500 fire extinguisher, which is designed for lithium battery fires.
- Tenant education – Share simple safety tips with tenants, such as avoiding charging on beds or couches, using the correct charger, and unplugging once devices are charged.
- Lease agreements – Discuss EV charging expectations upfront and, if relevant, include clear rules in the lease.
- Insurance – Review your landlord insurance to ensure you’re covered for fire damage. Not all policies are equal, and some may exclude certain causes.
Insurance Implications
One of the questions I’m often asked is: “Will my landlord insurance cover me if a lithium battery causes a fire?”
The answer is: it depends.
- If the fire is the result of tenant misuse (such as using the wrong charger or overcharging a device) or is deemed a genuine accident, most landlord insurance policies will provide cover.
- If, however, the fire results from faulty installation (for example, an incorrectly fitted EV charger) or negligence by the landlord, tenant, or a third party, the claim may be denied.
This is why it’s critical to understand your insurance policy in detail. Speak with your provider and confirm whether lithium-ion battery fires are covered. If not, it may be time to consider upgrading your cover.
A Growing Challenge
Lithium-ion batteries aren’t going away—in fact, their presence in our homes will only increase. E-bikes, e-scooters, EVs, and cordless devices are becoming mainstream, which means the risks for landlords are only going to grow.
As landlords, our role is not only to provide safe and habitable homes but also to proactively manage emerging risks. By staying informed, setting clear expectations with tenants, and ensuring the right safety measures and insurance are in place, we can help reduce the risk of devastating outcomes.
Final Thoughts
Lithium-ion batteries have transformed modern life, offering convenience and mobility we now take for granted. But with that convenience comes responsibility.
If you own an investment property, I encourage you to:
- Review your fire safety equipment and smoke alarms
- Educate tenants about safe charging practices
- Be cautious about EV charger requests
- Double-check your insurance coverage
As I often say to clients, “Prevention is always better than cure.” A small investment in safety and preparation now could save you from a major financial and emotional loss later.
Contact the team on 4956 9777 or email us at mail@newcastlepropertymanagement.com.au