Founder Guide · Updated 18 May 2026
How to Start a Real Estate Agency in Australia, 8-Step Guide
Practical, action-ordered, and AU-specific. Covers licence pathways, ABN and structure, trust account setup and audit appointment, PII, software stack, commission and PM fee setting, and how to win your first 10 listings.
In this guide
- 1. Choose your niche
- 2. Get your licence: Class 1 vs Class 2 (state-specific)
- 3. Register your ABN, structure, and GST
- 4. Set up your trust account and appoint your auditor
- 5. Professional indemnity and workers comp
- 6. Pick your software stack
- 7. Set your commission and PM fees
- 8. Win your first 10 listings
Choose your niche
Real estate is not one business, it's five sub-businesses with very different economics, licensing requirements, capital needs, and software stacks. Picking your niche early forces every downstream decision (licence class, trust account structure, software, marketing) to line up. Trying to be all-things-to-all-vendors in year one is the most common reason new agencies fail.
Residential sales
Listings, marketing, OFI, auction or private treaty. Income is lumpy, 3 to 6 months from list to settled commission. High marketing spend.
Property management (PM)
Recurring management fees + letting fees. Steady cash flow, lower per-property margin, scales with portfolio size.
Sales + PM combined
The classic suburban agency. Sales pays the bills, PM portfolio is the saleable asset (typically 2.5 to 4× annual fees on exit).
Commercial / industrial
Lower volume, higher ticket. Specialist knowledge of yields, leases, and outgoings. Slower start but stickier clients.
Rural & lifestyle
Acreage, farms, hobby blocks. Wide territories, longer marketing campaigns, niche buyer pools.
Get your licence: Class 1 vs Class 2 (state-specific)
You cannot open an agency without the right licence in the state you operate in. Most states distinguish between a 'principal' / 'full' licence (allows you to operate an agency and supervise trust accounts) and an 'agent's representative' / lower-tier licence (lets you list and sell under a licensed principal). NSW uses Class 1 (principal/licensee-in-charge) and Class 2 (working agent). VIC uses Estate Agent's Licence vs Agent's Representative. The structure differs in every jurisdiction.
NSW Class 1
Required for a licensee-in-charge of an agency. Higher education + experience hurdle than Class 2.
NSW Class 2
Working agent under a Class 1. Cannot operate or supervise an agency on their own.
VIC Estate Agent's Licence
Required to open and supervise an agency. Diploma of Property + experience pathway.
VIC Agent's Representative
Entry-level licence to perform agency work under a licensed Estate Agent. CPP41419 is the typical course.
QLD Real Estate Agent licence
Issued by the Office of Fair Trading. Full agent licence required to operate an agency.
Plan 6 to 12 months ahead
Studying, supervised experience, and the licence application together typically take 6 to 12 months.
Register your ABN, structure, and GST
Pick a structure that matches your liability appetite and growth plan. The vast majority of new agencies operate as a Pty Ltd company, it limits personal liability, separates the agency's trust accounts from personal accounts cleanly, and presents better to landlords, vendors, and franchise partners. Sole-trader agencies are legal but rare for anything beyond solo buyer's agents.
Pty Ltd company
Limited liability. Setup cost ~$500, annual ASIC fee ~$300. Default for new agencies.
Trust + company
Discretionary trust with corporate trustee. Common for tax-effective income distribution, especially with PM cash flow.
GST registration
Mandatory once turnover hits or is expected to hit $75k. Real-estate commission is GST-taxable supply. Most agencies register from day one.
PAYG withholding
Required the moment you employ a salaried agent or PM. Set up via Online services for business.
Franchise vs independent
Franchise model = brand + systems + ~6 to 9% royalty + marketing levy. Independent = full control, slower brand build.
Set up your trust account and appoint your auditor
Every real-estate agency holding client money must run a statutory trust account, and most states require you to appoint a registered company auditor before you begin trading, not after. Trust money includes sales deposits, rental payments, bond money (where applicable), and security deposits. Mixing trust money with general operating funds is one of the fastest paths to losing your licence.
Sales trust account
Holds deposits on exchange of contract. Released to vendor at settlement (or other agreed event).
PM trust account
Holds rent paid by tenants pending disbursement to landlords. Reconciled monthly.
Auditor appointment
Most states require you to appoint a registered auditor and notify the regulator before trading. Annual audit reports lodged after EOFY.
Approved ADI
Trust accounts must be opened with an approved authorised deposit-taking institution (ADI), most major Australian banks qualify.
Bank account naming
Account name must include 'Trust Account' or 'Statutory Trust' so the bank tags it correctly. Interest typically goes to the state regulator's fund.
Professional indemnity and workers comp
Professional Indemnity Insurance (PII) is mandatory in every state for real-estate agencies, most state regulators require evidence of cover at the licence application stage. Workers compensation is separate and kicks in the moment you have an employee, including a salaried Class 2 agent or PM. Add public liability for open-home incidents and management liability if you have a corporate trustee.
Professional Indemnity (PII)
$1m minimum, $2m to $5m typical. Covers claims of negligence, misrepresentation, breach of duty. Required by state regulators.
Public liability
$10m to $20m. Covers slip/trip claims at open homes and inspections. Cheap relative to PII.
Workers compensation
Compulsory once you employ anyone. State scheme (icare NSW, WorkSafe VIC, WorkCover QLD, etc.). Premium based on payroll and risk class.
Cyber + data breach
Increasingly recommended. Agencies hold sensitive vendor / tenant ID data, Notifiable Data Breach scheme applies.
Management liability
Optional but useful for directors of corporate-trustee agencies. Covers D&O, employment-practice, and tax-audit defence.
Pick your software stack
Real-estate operations are software-heavy: CRM, trust accounting, listing portal sync, e-signing, inspection apps, e-commerce of forms. Most agencies run a stack of 5 to 8 tools. Get the trust-accounting platform right first, switching trust software mid-year is painful and audit-disruptive. Everything else is more swappable.
Trust accounting + PM
PropertyMe, PropertyTree (MRI), Console, Rest by Rockend. Pick based on portfolio size, integrations, and audit familiarity in your state.
Sales CRM
AgentBox, VaultRE, MyDesktop, Realworks (REIQ). Pipeline tracking, contract management, vendor / buyer database.
Portal upload
REA, Domain, allhomes (ACT), homely. Most sales CRMs push directly to all major portals.
REI / REIA forms
State-body standard forms (REINSW, REIV, REIQ, etc.) for listing authorities, contracts, residential tenancy agreements.
E-signing
DocuSign, Adobe Sign, or REI-form-integrated signing. Most state forms now accept e-signed versions for sales authorities and leases.
Inspection apps
Inspection Manager, InspectRealEstate, Routine Inspect for PM routine and ingoing/outgoing reports.
Marketing / VPA
Realhub, Campaigntrack, Domain VPA for vendor-paid advertising orchestration.
Set your commission and PM fees
Commission and management-fee structures are the single biggest driver of agency P&L. Sales commission ranges by state and suburb (typically 1.6 to 3.5%); PM management fees range 5.5 to 10% of rent collected; letting fees are typically 1 to 2 weeks rent. Undercutting on commission early to win listings is a trap, your brand gets stuck at the discount price point and is hard to reset. Set fees that match your service and defend them.
Sales commission, capital cities
Sydney 1.8 to 3.0%, Melbourne 1.6 to 2.5%, Brisbane 2.2 to 3.0%, Perth 2.0 to 2.9%, Adelaide 2.5 to 3.5%.
Sales commission, regional
Generally 2.5 to 3.5%. Lower buyer pool + longer marketing campaign justifies higher rate.
Tiered commission
Flat rate up to a 'reserve' price, then a higher % on the upside. Aligns agent + vendor incentives on a stretch sale.
PM management fee
Sydney 7 to 9% of rent, other capitals 5.5 to 8%, regional 7 to 9% (more travel time, lower density).
Letting / re-letting fee
1 to 2 weeks rent (most common: 1 week). Covers advertising, viewings, application processing, lease prep.
Inspection / renewal fees
Routine inspection $20 to $40/each; lease renewal $50 to $150. Disclose all fees upfront, Consumer Affairs disputes spike when fees surprise landlords.
Win your first 10 listings
Listings are the lifeblood of a new agency. The first 10 are the hardest because you have no recent comparable sales (no 'sold' signs on the street, no testimonials, no proven marketing track record). Lean on personal network, kerbside prospecting, off-market deals, and aggressive but honest comparative market analyses. Once you have 10 sales under your belt, listings start to come to you.
REA + Domain
Mandatory presence. Premium / highlight upgrades for first listings to ensure visibility. Most VPA budgets factor in these upgrades.
Kerbside prospecting
Door-knocking your target suburb, especially around recent comparable sales. Sounds old-school, still works in year one.
Off-market deals
Buyer's agents and developer clients pay full commission for the right off-market introduction. Lower marketing cost, faster cash.
Vendor-paid advertising
VPA is standard, most vendors expect to fund their own marketing campaign ($3k to $10k typical for residential). Don't absorb VPA to win listings.
Personal network
First 3 to 5 listings often come from your personal sphere. Don't discount the commission, discount the VPA threshold instead.
Social proof
Capture every testimonial, every review, every 'sold' photo. Google Business Profile reviews matter more than agency website testimonials.
Avoid the obvious traps
Rookie mistakes that cost new agencies
Six patterns we see in newly-licensed agencies that are easy to avoid once you know to look for them.
Trading before the auditor is appointed
Most state regulators require auditor appointment notification before you accept trust money. Operating a sales or PM trust account without a recorded auditor is a strict-liability breach in most jurisdictions, fixable, but a bad way to start.
Undercutting commission to win the first listing
Discounting to 1.0% to win a vendor is sticky, the next vendor expects the same, the one after expects less. Build the listing presentation, defend the rate, walk if the rate isn't right.
Mixing operating funds and trust funds
Even an accidental $100 from operating into trust (or trust into operating) is a reportable breach in most states. Set up separate cards, separate bank logins, separate signatories from day one.
No CPD calendar
Every state mandates Continuing Professional Development hours for licence renewal. Falling behind triggers a renewal refusal, and you cannot legally trade with a lapsed licence.
Free buyer's agent work to 'get a foot in'
Doing buyer's agent work for free or contingent on a sale (in states where contingent buyer-agent fees aren't permitted) is a fast path to a Consumer Affairs complaint. Charge a clear, disclosed fee or don't take the engagement.
Underestimating insurance lead-time
PII is straightforward at renewal but the first-time application takes 2 to 6 weeks. Apply before you submit your licence application, most regulators require evidence of cover at the licence stage.
Practical tips for new principals
Pair sales with PM from day one
Sales income is lumpy and slow in months 1 to 6. A small PM portfolio (10 to 30 properties) bought from a retiring agent or grown organically gives you predictable monthly cash flow that covers fixed costs while sales builds.
Write the trust-accounting procedure first
Document your trust receipting, banking, disbursement, and reconciliation procedure before you take your first deposit. Auditors look at procedure adherence, not just balances, getting this right in year one prevents qualified audit reports.
Treat your CPD like a billable obligation
CPD hours are a hard licence-renewal requirement in every state. Block out a quarterly half-day for CPD, log hours as they happen, keep certificates. Don't let it pile up to a June scramble, falling short of CPD blocks your renewal.
Build the database from day zero
Every open home attendee, every appraisal, every kerbside chat , into the CRM the same day with consent for follow-up. The buyer database you build in year one is the listing pipeline you draw on in year three.
Frequently Asked Questions
How much does it cost to start a real estate agency in Australia?
Plan for $25,000 to $60,000 in year one before commission revenue lands. Major line items: licence training and application ($3k to $8k), Pty Ltd setup ($500 to $2k), PII ($1.5k to $3k), shopfront or co-working ($0 to $24k), trust accounting software ($150 to $500/month), CRM ($100 to $300/month), marketing/branding/website ($5k to $15k), initial marketing campaigns ($5k to $10k), and 3 to 6 months operating runway since the first commission cheque can be 90 to 180 days out from your first listing.
Can I start a real estate agency without prior experience?
No. Every state requires supervised experience under a licensed principal before you can hold a Class 1 / full agent's licence. Typically 12 months of practical experience as an agent's representative or Class 2 working agent, plus the relevant educational qualifications (Certificate IV, Diploma of Property, or equivalent depending on the state).
Do I need a physical office?
Not legally, most states allow registered office at home or a virtual address as long as your trust account, records, and supervised agents are properly managed. Practically, a shopfront in a target suburb still drives walk-in listings and reinforces local brand, but many new agencies (especially commercial, buyer's agent, and rural) operate fully digital.
How long until my first commission cheque?
Typical residential timeline: 4 to 8 weeks to win the first listing, 4 to 8 weeks marketing campaign, 6 to 8 weeks from sale to settlement. Total: 14 to 24 weeks (3.5 to 6 months) from agency open day. PM income (management fees) starts as soon as you have a property under management, typically faster cash flow than sales.
Franchise or independent?
Franchise (Ray White, LJ Hooker, Belle, Harcourts, McGrath, etc.) gives brand, training, technology, and recruitment but takes 6 to 9% of commission plus a marketing levy. Independent gives full control and full upside but you build the brand, systems, and supplier relationships from scratch. New agents with strong local profile often start independent; new entrants without local recognition often start franchise.
What's the most common reason new agencies fail in year one?
Cash flow, specifically, underestimating how long it takes to convert the first listing into a settled commission, while burning marketing budget, software fees, and (if applicable) rent. Agencies that survive year one typically had 6+ months of personal runway behind them, or paired sales with a PM portfolio acquisition for early recurring cash flow.
Ready to open?
OneBookPlus gives a new agency the CRM, contact pipeline, vendor and landlord database, and document handling to launch fast, alongside your trust-accounting platform. Free to start, no credit card required, AUD billing.
Rather look before you sign up? Open a live demo account with real data in it, or compare the AUD plans on the pricing page.
Reviewed by Bishal Shrestha
About the author
Bishal Shrestha
Founder & CEO, OneBookPlus
Bishal spent a decade running digital projects for Australian small businesses before founding OneBookPlus. He writes and maintains these pages, and publishes what OneBookPlus does not do alongside what it does.
Read the founder bioHow this page was researched
The compliance and licensing statements above are taken from the bodies this page links to, including the Australian Business Register, so you can read the rule rather than take our word for it. Plan prices come from the OneBookPlus price registry, so the page and the checkout cannot disagree. Everything said about OneBookPlus describes what the product does today, and the page says so where it does not do something.
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More in this guide
Related resources
Real Estate Licence by State
Class 1/2/AOREB, NSW/VIC/QLD/SA/WA/TAS/ACT/NT licensing pathways, CPD, principal in charge.
Read Real Estate Licence by StateComplianceTrust Account Rules by State
Sales trust vs property-management trust, audit cycles, breach reporting under PSBA/REBA.
Read Trust Account Rules by StateReferenceAgency Fees Benchmark
Sales commission ranges, property management fees, letting/inspection/lease-renewal charges by city.
Read Agency Fees Benchmark