Smaller Landlords More Likely to Enforce Renters Insurance, Study Reveals

A recent joint survey conducted by RentRedi, a leading landlord software platform, and BiggerPockets, a prominent online community for real estate investors, has revealed critical insights into the enforcement of renters insurance among landlords. The survey, conducted from June 11 to June 16, 2025, gathered responses from 812 real estate investors and property owners, highlighting a significant trend: smaller landlords are 60% more likely to require and verify renters insurance compared to their larger counterparts.

The survey findings indicate that while most landlords are aware of the distinctions between renters insurance and landlord insurance, a considerable number still do not enforce or verify it. Specifically, half of the respondents admitted that they do not check whether their tenants are insured. The remainder reported using a combination of manual checks, confirmations from insurance companies, or property management software to ensure compliance.

In a broader analysis, RentRedi conducted a separate survey from March 30 to April 14, 2025, with 1,623 participants, which assessed landlord behaviors across various portfolio sizes. The results showed that over three-fourths of landlords understand the difference between the two types of insurance. However, only about 20% offer renters insurance options directly to tenants, and fewer than half include it as a lease requirement.

Verification practices also vary significantly among landlords. Approximately 40% confirmed that they followed up to check if tenants maintained active insurance coverage. Among landlords who included renters insurance in their leases, nearly three-quarters reported enforcing this requirement.

Interestingly, smaller landlords, defined as those managing 1 to 4 rental units, emerged as the most proactive in requiring renters insurance. Nearly 60% of small landlords said they include this requirement in their leases, with 80% of those enforcing it. In contrast, larger landlords, defined as those managing 20 or more units, showed a notable decrease in both inclusion and enforcement of insurance requirements by margins of 22 and 15 percentage points, respectively.

These findings suggest a growing need for landlord software solutions that streamline the verification process of renters insurance, especially for larger landlords who may struggle with manual processes. Ryan Barone, Co-founder and CEO of RentRedi, emphasized the importance of renters insurance, stating, "It minimizes financial risk, reduces liability, and gives both landlords and tenants greater peace of mind. These results show that landlords recognize the value but often lack a streamlined way to implement it, which is precisely the problem that RentRedi addresses."

RentRedi's platform allows landlords to easily offer renters insurance options during the application and onboarding process, requiring proof of coverage within the lease and automatically verifying compliance. The platform also enables tenants to purchase renters insurance directly or upload proof of an existing policy, notifying landlords instantly. Furthermore, RentRedi integrates with select insurance providers for real-time tracking and adds landlords as additional insured parties when necessary.

The survey and its implications highlight a critical juncture in the property management sector. As landlords increasingly recognize the value of renters insurance in mitigating risks, the demand for efficient, tech-driven solutions will likely continue to grow. The importance of standardizing and formalizing insurance policies is underscored by the results, which reflect a desire among landlords to protect their investments while enhancing tenant experiences.

The full survey results, along with additional insights from RentRedi's ongoing initiative to gather real-world data from landlords and property managers, can be accessed on their website. As the PropTech market evolves, platforms like RentRedi are positioned to play a pivotal role in shaping the future of rental management and compliance.