If your landlord needs to make a claim on their insurance for something related to an eviction, like loss of rent, then it is incredibly important that the legal eviction process has been followed.
If the tenant has not been legally evicted, the landlord’s insurance claim could be jeopardised – payouts could be delayed, reduced or even denied.
There are numerous reasons why a landlord may need to evict a tenant or end a lease before it expires.
Not all are due to the action or inaction of the tenant – the landlord may have sold the property with vacant possession, the premises may need to undergo extensive repair, the bank may have foreclosed on the property, or the owner simply needs to move in.
There are of course times when the reason a tenant is evicted is because of something they have or have not done.
And when it comes to things they ‘have not done’, it is often pay their rent.
Not paying rent is grounds for eviction in every state and territory, and tenants defaulting on their rent is one of the main reasons landlords need to claim on their insurance.
Before a landlord can make a claim for loss of rent due to rent default, the legal eviction process needs to have been completed.
It is important to know that insurers limit the number of weeks that they will cover rent default (at EBM RentCover it is six weeks).
Delays in addressing arrears or missteps in the eviction process could end up costing the landlord if the arrears exceed the limits the insurer pays.
The eviction process
Specifics differ from state to state, and you should always refer to the applicable tenancy law wherever you are, but as a general guide:
Establish valid grounds for eviction
Previously, ‘no grounds’ evictions were the norm across the country – this is no longer the case.
Most states now require a landlord to have a valid reason to evict a tenant.
The ban on no grounds evictions comes into effect in New South Wales on 19 May 2025, while legislation prohibiting no grounds evictions was passed by the Victorian Parliament on 6 March 2025.
Lawful reasons to evict a tenant may include the tenant:
- failing to pay rent on time or at all;
- causing significant property damage, beyond wear and tear;
- engaging in illegal activities on the premises;
- creating significant disturbance or nuisance to neighbours;
- abandoning the property or unauthorised subletting; or
- breaching the rental agreement (there must be an attempt for the breach to be remedied first).
Other lawful, non-tenant related reasons include:
- end of a fixed-term lease;
- sale of property;
- renovations or redevelopment;
- property uninhabitable or destroyed or
- owner moving in.
Knowing the reason for ending the lease is important as it will determine the type and period of notice that you’re required to give the tenant to start the eviction process.
Review the lease agreement
Thoroughly review the lease agreement, particularly in respect to terms and conditions agreed to, and any specific clauses that relate to eviction.
Pay close attention to any state or local laws mentioned in the agreement as these regulations can affect the eviction process, including notice periods and acceptable grounds for eviction.
Issue breach notices (where required)
If the tenant has breached the rental agreement – for example, has not paid their rent – in most cases they must be given an opportunity to remedy.
The notice legally informs the tenant of the issue and what they need to do to rectify it.
The notice should clearly state the reason for the breach, the required action, and the deadline – ensuring all the details are accurate to avoid legal issues.
You need to follow the legislated process for issuing breach notices including using the correct format, adhering to specified timeframes, and delivering the notice.
If the breach is not remedied, eviction may be required.
Provide an eviction notice
The next step is to provide the tenant with a formal eviction notice. There are different types of eviction notices used around Australia including:
- Notice to Remedy Breach;
- Notice to Leave;
- Notice to Vacate; and
- Notice of Termination.
There are different requirements for each type of eviction notice, including how much time the tenant must be given to vacate.
Once again, the legislated process must be strictly followed.
Courts and tribunals have been known to dismiss cases based on the correct procedures not being followed.
If an eviction notice is deemed invalid, the notice periods start over – this could see the landlord without rental income (and you without management fees) for an extended period, and unable to recoup the loss on their insurance.
In general, eviction notices should be served in writing and include specific information to ensure they comply with local laws.
Initiate legal proceedings
Ideally, if a tenant is issued with an eviction notice they will vacate by the specified deadline.
If they don’t, the landlord/you will need to apply for possession of the property.
This means escalating the matter through a tribunal or court.
Be sure to have all the paperwork needed for the court/tribunal – you will need this for any insurance claim too:
- Lease agreement.
- Copies of the served breach and eviction notices.
- Proof of notice delivery (such as receipt from registered mail).
- Records of communications with the tenant regarding the issue.
- Evidence supporting the reason for eviction (e.g. unpaid rent statements, photographs of property damage).
The court/tribunal will decide on possession.
The process varies and may involve the tribunal/court making a termination order and setting a date for the tenant to move out.
If the tenant fails to move out by that date, a warrant of possession may need to be applied for.
This allows law enforcement authorities to remove the tenant from the property.
Once possession has been returned to the landlord, the property can be re-let.
Insurance cover for evictions
Depending on the landlord’s insurance cover, claims may be able to be lodged for matters relating to a legal eviction.
For example, if the landlord’s policy includes cover for the insured event that was at the heart of the tenant being evicted, such as rent arrears or malicious damage, then a claim for the losses suffered may be possible (keeping in mind the limitation on the number of weeks rent default is covered).
The landlord may also have a claim for loss of rent due to denial of access if the tenant refused to pay their rent and leave the premises after they were issued with an eviction notice (or possession has been served upon them), again, keeping in mind that cover only applies if the legal eviction process has been followed.
At EBM RentCover we offer up to 52 weeks of cover for denial of access.
EBM RentCover also provides up to $5,000 to help cover the cost of legal expenses associated with eviction due to loss of rent.
Evicting a tenant is never easy, but if you go about it legally you can make sure that any claim your landlord has on their insurance is safeguarded.
If you have questions, reach out to your EBM RentCover Relationship Manager.
If you aren’t partnered with us, but would like to be, please get in touch.
