Fire Risk: Lithium-Ion Batteries in Rentals – What Every Landlord Should Know

From smartphones and laptops to e-scooters and electric vehicles, lithium-ion batteries are part of everyday life — including inside our rental homes. While these powerful batteries have revolutionised convenience, they also come with serious fire risks that landlords and property managers must understand.

In 2024 alone, over 1,000 fires in Australia were linked to lithium-ion batteries. These fires aren’t just headlines — they’re a growing real-world threat that can lead to devastating property damage, tenant injury, or worse.

At PWC Realty, we’re a real estate agency that works closely with landlords and property investors. While we’re not an insurance company or fire safety authority, we believe it’s important to raise awareness about emerging risks like these — and share practical, relevant information with our clients and the wider real estate community.

What Makes Lithium-Ion Batteries Dangerous?

Lithium-ion batteries power countless modern devices — from phones and laptops to vacuum cleaners, tools, e-bikes, and EVs. But when damaged or misused, they can overheat, explode, or catch fire in seconds.

Common causes of lithium-ion battery fires include:

  • Using the wrong charger
  • Overcharging devices overnight
  • Physical damage (e.g. dropping a device)
  • Charging near flammable surfaces
  • Faulty or non-compliant devices

These fires can be extremely fast-burning and difficult to extinguish, often causing major structural damage and risking the safety of everyone in the home.

Why Rental Properties Are Especially at Risk

Rental homes are particularly vulnerable because landlords often have limited visibility into how devices are being used or stored. Inside most rental homes, tenants are likely charging:

  • Phones and laptops (sometimes overnight)
  • Cordless vacuums and power tools
  • E-scooters, e-bikes, or other light electric vehicles
  • Possibly even electric vehicles (EVs), if permitted

Often, these devices are charged on soft furnishings like beds, couches, or carpets — increasing the chance of fire spreading quickly.

As a real estate agency working with landlords daily, we see the potential risks increasing, especially as tenant demand grows for EV charging facilities and smart home technology.

Thinking About Installing EV Chargers? Consider These First

With the growth of electric vehicles in Australia, many tenants are now asking landlords for in-home EV charging stations. While offering this amenity may appeal to tech-savvy or eco-conscious renters, it introduces new responsibilities and potential liabilities.

Before installing an EV charger at your rental property, it’s important to consider:

Safety and Compliance

Poorly installed EV chargers can overheat or malfunction, posing serious fire risks. Always use a qualified, licensed electrician.

Insurance Implications

If an EV-related fire is caused by faulty workmanship, you or the tenant may be held liable — and insurance coverage could be denied.

Strata and Building Approvals

For units or townhouses, body corporate approval may be required before any installation.

Lease Agreement Clauses

Clearly define who is responsible for installation, maintenance, and usage — and outline restrictions or approved use policies.

What Landlords Can Do to Reduce Fire Risk

At PWC Realty, we believe prevention is always better than cure. While we’re not fire safety consultants, here are practical steps that every landlord can take to help reduce risk in their rental property:

1. Maintain Working Smoke Alarms

Ensure all required smoke alarms are installed and functioning, as per local legislation.

2. Provide Fire Safety Equipment

Equip the property with:

Fire blankets

A suitable F-500 fire extinguisher, rated for lithium battery fires

These tools can help tenants respond quickly in an emergency.

3. Educate Tenants on Charging Safety

It only takes one fire to cause thousands in damage. Sharing simple safety reminders with tenants can go a long way:

  • Don’t charge devices overnight or unattended
  • Only use chargers supplied by the manufacturer
  • Avoid charging on beds or soft furnishings
  • Stop using damaged, swollen, or overheating batteries

We recommend including a charging safety checklist in your tenant welcome pack.

4. Add EV Charging Terms to the Lease

If you allow EV or e-scooter charging, ensure your lease covers:

  • Installation responsibilities
  • Approved charging locations
  • Maintenance expectations
  • Safety and compliance standards

5. Review Landlord Insurance Coverage

While PWC Realty doesn’t sell insurance, we strongly recommend landlords speak to their provider about what is and isn’t covered. For example:

  • Accidental fires from tenant misuse may be covered
  • Fires caused by non-compliant EV chargers or unapproved electrical work may not be
  • Every policy is different, and a small oversight could result in a denied claim.

6. Schedule Regular Inspections

Routine property inspections help identify:

  • Unapproved modifications (e.g. DIY chargers)
  • Unsafe charging behaviours
  • Early signs of damage or misuse

Fire Risk Awareness = Smarter Property Management

As a real estate agency, our role is to help landlords protect their investments and stay ahead of emerging risks. Fire risk from lithium-ion batteries is one of those issues that’s easy to overlook — until it’s too late.

We share this information to help property owners, investors, and fellow professionals in the real estate industry make safer, smarter decisions.

Final Thoughts: Be Proactive, Not Reactive

Lithium-ion batteries are not going away. In fact, we’re only going to see more of them — and that means landlords must be proactive, not reactive in managing the associated fire risks.

At PWC Realty, we don’t just manage properties — we help our clients make informed, future-proof decisions that reduce risk and enhance value. From lease structuring to tenant education and ongoing support, we’re committed to keeping landlords informed and properties protected.

Want Support from a Property Management Team That Keeps You Informed?

If you’re a landlord or property investor looking for:

  • Practical guidance on tenant safety
  • Smarter lease terms for EV and device use
  • A property management agency that takes risk seriously

Then it’s time to speak with a team that understands the evolving needs of today’s rental market.

Contact Jo Lindo, our property management expert, on 0429 092 110.

PWC Realty – Professional Property Management. Informed Landlords. Safer Rentals.
We share what matters because we care about your investment.