GOOD MORNING FROM ELITE AGENT

Consumer confidence is slightly on the rise according to ANZ Roy Morgan data, with optimism growing about financial conditions and the economic outlook. It’s a small but positive shift, showing that Australians are slowly regaining faith in the future amidst easing inflation pressures.

Today’s read time: 4 minutes, 25 seconds.

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ADVICE

What agents need to know about short-term rentals

Managing short-term rental properties can be a lucrative opportunity for real estate agents, though it comes with added responsibilities and unique risks.

According to advice from EBM RentCover, financial returns from short-term rentals often surpass those of long-term rentals, attracting both landlords and agents.

However, the high turnover of guests brings extra work, and specialised insurance policies are necessary to mitigate the unique risks associated with short-term rentals. Standard insurance may not provide adequate coverage, making it essential for landlords and agents to consider tailored insurance solutions to protect their interests.

Higher financial returns with increased responsibilities

Short-term rentals can yield significant income, with some landlords earning up to $131,000 annually, which is around 80.9% more than long-term rentals.

“With higher returns for the landlord, there can be higher returns for the managing agent via percentage-based management fees," said Sharon Fox-Slater, Managing Director of EBM RentCover. However, this potential gain comes with added challenges like managing frequent guest turnovers and coordinating services.

Specialised insurance is crucial

Sharon said agents should also be aware that "normal home and contents insurance, landlord insurance or other insurance options simply may not cover them for damage or liability caused by a paying guest.”

Unique risks for short-term properties

"What works for longer-term tenancies doesn’t necessarily work for the short-term market – the risks are different,” explained Sharon. Loss of rent is a key consideration for landlords with fixed-term leases, with tenants breaking leases and defaulting on rent.

For short-term, there is no lease agreement in place, which means a different type of loss of rent cover is required. “For short-term, the loss of rent coverage should consider circumstances such as the loss of rent due to a confirmed booking being unable to occupy the property due to guest damage or damage from insured events like fire and storm.”

Learn more about what short-term rental risks you should be aware of here*

ICYMI, yesterday we covered tips on what the RBA cash rate hold means for real estate agents

TOGETHER WITH CALL ME SUCCESSFUL

How did Jesse Patrick go from electrician to rising star with $1M+ in sales in just 18 months?

In this episode of Call Me Successful, the spotlight is on Jesse Patrick, who transitioned from electrician to top real estate agent in under two years, building a $1M+ business within 18 months. Jesse shares how he turned job loss into opportunity, using creative marketing like handing out business cards and buying coffee for locals with his details attached. He also discusses overcoming credibility challenges without prior real estate experience and the key mentorship from Jordan Strudwick, which pushed him to invest in marketing even during tough times.

Listen to Jesse's insights on success and how new agents can tackle big risks here

SMART SNIPPETS

Shock as Brisbane ranked second globally for cost-of-living
Brisbane has been named the second most cost-effective city in the world for living expenses, according to Compare The Market’s global index. This comes as a surprise given Brisbane’s significant 75% increase in housing costs since the pandemic.

Shifting buyer trends redefine Sydney’s property market
Domain’s Matching Demand report reveals that Sydney’s property market is evolving, driven by affordability pressures and changing lifestyles. House searches peak around 30 km from the CBD, while townhouses attract diverse interest but face supply limitations. Price mismatches, particularly in premium suburbs are also creating challenges for agents and buyers alike.

Singles priced out of the rental market
If you're dreaming of a Carrie Bradshaw lifestyle in New Zealand, you might want to think again. New analysis shows that not a single region in the country meets affordability thresholds for single renters. In Auckland, singles need to earn $2,061 weekly to afford the rent, while median income is only $1,343 - creating a significant shortfall.

SOUND WAVES

Mastering workplace influence

Today’s curated listen explores why persuasion is a valuable skill in the workplace. Check out these 13 methods for convincing others, from mirroring behaviour and providing options to using silence strategically.

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

Read the article from Indeed here

AGENTS ON SOCIAL

When you get your first commission cheques, resist the urge to turn into a Hollywood superstar with a new car and designer wardrobe. Instead, open a 'Tax Survival Fund' (trust me, the taxman is scarier than your biggest client), and stash away enough to avoid that 'two-minute noodles diet' when sales slow down. 💸🍜

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.

If you see a * beside a story, it’s a sponsored post, including the 'Together With' section. To enquire about advertising with us, visit eliteagent.com/advertise.

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