GOOD MORNING FROM ELITE AGENT

Monash Business School's latest research uncovered something pretty interesting: women feel that AI in job recruitment cuts down on bias, leveling the playing field. Meanwhile, men? Well, they're sweating a bit, thinking AI is stripping them of a hidden advantage. It’s like women see AI as a fair referee, while men feel like they’ve lost their "insider" edge. Turns out, even robots in hiring can spark a little drama.

Today’s read time: 5 minutes, 22 seconds.

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LONG-TERM LEASES

Rethinking renting: can 10-year long contracts become the norm in Australia?

As the housing market in Australia pushes more people into renting, long-term leases could be a solution to address insecurity in the rental market.

Countries like Germany and Switzerland have normalised lifelong renting, offering secure leases with the assurance that tenants they won’t face sudden eviction or frequent rent hikes.

Haley McAndrew, a senior property manager at The Leasing Network and Alison Hatch, founding director of Best Nest Property Management, suggest longer leases could benefit landlords and tenants by reducing turnover and providing stability.

However, concerns about rent caps and owner flexibility must be addressed. Property experts, including Hannah Gill, director at The Property Collective, and Leanne Pilkington, CEO of the REIA, agree that legislation and incentives are key to implementing this approach in Australia.

Long-term leases create mutual benefits for both tenants and landlords

Longer leases offer tenants a stable home environment, providing peace of mind and reducing the need to frequently move and landlords benefit from fewer vacancies and reduced turnover costs.

Ms Hatch said this arrangement fosters stronger, more consistent relationships between tenants and landlords, creating a win-win scenario. "Certain investors would love long-term leases, particularly those focused on superannuation properties or with no mortgage. It offers them the security they seek."

Flexibility and rent adjustments remain concerns for landlords

One of the main concerns for landlords is the potential financial risks tied to long-term leases, such as being locked into lower rents despite inflation or market changes. Ms McAndrew from The Leasing Network points out that “Long-term leases would need inflation-tied rent increases to remain feasible for property owners.”

Ms Pilkington echoes this concern, adding that some landlords prefer flexibility, especially those with tight mortgage obligations. ”The challenge is that people’s financial situation can change dramatically in 10 or 20 years, so some investors may be loath to make that commitment if they are then unable to sell the property, for example, or move into it themselves if they find their situation changes.”

A cultural shift towards long-term renting is needed in Australia

Adopting long-term leases could address part of the housing crisis, but it requires a significant shift in the rental ecosystem. In many parts of Europe, long-term renting is accepted as a viable housing option.

"We’re just accustomed to signing 12-month leases, but offering long-term leases could provide both landlords and tenants with more flexibility and security," said Ms Gill. This change would require policy reforms and educational efforts to ensure both parties understand the benefits and challenges of long-term agreements.

ICYMI, last week we covered why transparency in the new currency in real estate

TOGETHER WITH MARK KENTWELL

The role of a real estate principal has transformed into one of collaboration, where the principal is no longer just overseeing operations but aligning agent goals with the agency’s mission. In a model like a super team or Agent Business Unit (ABU), each person's role is clearly defined.

The principal takes care of operational efficiency while ensuring critical revenue targets are met, while the agent closes deals and brings in clients. In this collaboration, principals are not merely supervisors, but partners who guide their agents toward success.

It’s all about fostering leadership and accountability within the team, making the business more than just the sum of its parts. Mr Kentwell explains that this "one plus one equals five" philosophy strengthens both individual performance and the overall agency, making it an effective and sustainable model for long-term growth.

Read more about the Principals Playbook here

SMART SNIPPETS

Property boom slowing down
Despite Australia's property market hitting a record $11 trillion value, growth is decelerating. National home values increased just 1% in the September quarter, down from earlier highs. Perth leads with 24.1% annual growth, while Melbourne and Hobart face declines. Interestingly, investors now make up 38.6% of new loans, the highest since 2017, even as rental growth slows to a four-year low.

NZ rate cuts to lift confidence
New Zealand's central bank has cut interest rates by 0.50%, in a move that should boost confidence. While it’s expected to lower mortgage rates and boost housing market activity, experts warn against anticipating a dramatic upswing in prices. The Reserve Bank hints at more rate cuts to come, with economists forecasting modest house price growth in 2025.

How a WhatsApp group became a powerful platform for female agents at Laing+Simmons
Laing+Simmons’ organically grown "She Sells" initiative started as a simple WhatsApp chat and has transformed into a vital platform for women agents to connect, collaborate, and grow. Originally emerging from a mentoring program, which pairs women based on personality rather than job role, Laing+Simmons offices have begun leveraging She Sells as a recruitment and retention tool, enhancing both job satisfaction and personal engagement.

REIWA’s new President takes the reins
Suzanne Brown has been elected as the new President of the Real Estate Institute of Western Australia (REIWA). A veteran with 35 years in the industry, Brown takes over from Joe White, who completed his two-year term. The new leadership team, including Deputy President Rob Mandanici, aims to tackle key issues such as housing supply, affordability and regulatory changes in the property sector.

SOUND WAVES

Young people are sacrificing mental health to get ahead in their careers

In a recent survey, almost half of young people admit to sacrificing their mental wellbeing to get ahead in their careers. With financial success seen as the key to stability, they are juggling multiple jobs, often at the cost of their mental and physical health. Today’s curated listen talks about why finding balance is more critical than ever.

Dive straight into the listen below or the deeper dive here.

Read the article from LAD Bible Here

AGENTS ON SOCIAL

Real estate agents (and everyone else on the planet) often stick to their glamour headshots from years ago, back when they looked like they could be starring in a soap opera. Clients show up expecting a polished, Hollywood-smile agent, but instead meet someone who’s seen a few too many closing days and property inspections. 📸😎

@lawrenceliewrealestate

How people think real estate agents walk into the office vs reality #bayleysnz #auckland #realestateagent #workmemes #worklife

Seen an Agent On Social we should include? Let us know here (email link)

Wishing you a productive day

Elite Agent is crewed by Mark Edwards, Catherine Nikas-Boulos, Rowan Crosby, Giverny Pringle, Charmagne Arrubio and Samantha McLean. We aim to uplift the real estate industry by delivering forward-thinking, hype-free news and education that fosters knowledge and fuels ambition.

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