How to set up a real estate business in Australia: Step-by-step guide

Launching your own real estate business is an exciting opportunity, but it requires careful planning, compliance, and the right systems from day one. Real estate is a competitive industry, and success often depends on how well you prepare before you open your doors. To help you get started, this guide will take you through the essential steps of establishing your agency, from market research through to ongoing compliance.

MRI Software develops innovative real estate software that can support agencies of all sizes with property management, compliance, marketing, and financial processes. These solutions help you reduce manual work and keep your business running smoothly. Before you dive into the details of operations, it is also worth reading MRI’s advice on what to consider before you start. With the right preparation, you will be better placed to build a business that stands out.

Table of contents:

• Research, strategy & business planning
• Choosing the right business structure
• Obtaining licensing and compliance
• Establishing legal and financial foundations
• Setting up office, operations & team
• Implementing systems & technology
• Launching marketing & sales
• Continuous development & compliance
• Key legal & regulatory checklist
• Contact MRI Software
• FAQ

1. Research, strategy & business planning

Market research & target segments

Every successful agency begins with a deep understanding of its market. Research gives you the insight needed to decide where you will compete and how you will attract clients. Analyse local property trends, sales prices, rental vacancy rates, and the demographic mix of the community. Consider whether growth is being driven by investors, young families, or downsizers.

Equally important is competitor analysis. Look at what other agencies in your area are doing, how they present their services, and where they may be underperforming. You might notice that existing agencies do not focus on investor clients or that few offer end-to-end property management services. This research forms the foundation for your value proposition and ensures you are targeting a clearly defined segment.

Business model decisions: agency types & service mix

Once you have clarity on the market, you need to decide on your business model. Agencies typically fall into a few broad categories. Some focus solely on sales, relying on transactions and commissions. Others specialise in property management, which delivers steady income streams but requires strong administrative systems. Many new agencies opt for a mix of both to balance short-term cash flow with long-term stability.

You should also consider whether you will deal in residential or commercial property, or both. Commercial property can offer higher returns but requires detailed knowledge of leasing arrangements and tenant management. Residential is more accessible for many start-ups but comes with high competition. Your choice of service mix will shape your staffing requirements, your technology stack, and even your marketing strategy.

Creating a robust business plan with finances

A clear business plan is essential. It sets out your goals, defines your strategy, and maps your path to profitability. Investors, lenders, and potential partners will expect to see a well-prepared document that shows you have thought through both opportunities and risks.

Key areas your plan should cover include:

• Start-up expenses such as licences, office equipment, and digital systems
• Revenue projections from sales commissions, leasing fees, or management contracts
• Marketing spend including digital advertising, website development, and offline branding
• Ongoing costs such as staffing, compliance, and insurance

Financial forecasting is critical. Estimate best and worst-case scenarios for the first few years, so you know how much cash flow you need to stay viable. Document risks such as fluctuating property prices or staff turnover, and outline how you will manage them. A strong plan is more than an internal document. It is a roadmap you can return to as your business grows.

2. Choosing the right business structure

Sole trader, partnership, or company models

Choosing your legal structure has long-term implications for liability, tax, and growth. A sole trader model is simple to set up and gives you full control, but it also makes you personally liable for debts. Partnerships can be useful if you are starting out with another professional, but they require clear agreements to avoid disputes. Many agencies choose a company model, which separates business liability from personal assets and may open up more options for raising capital.

The right structure depends on your goals, the scale of your agency, and your risk appetite. Professional advice from an accountant or solicitor can help you decide what best suits your circumstances.

Registering your ABN and business name

Whichever model you choose, you will need an Australian Business Number (ABN) and a registered business name. Registering a name that reflects your brand identity is important, as it will be central to your marketing and recognition in the community. Make sure the name is unique and not too similar to existing agencies to avoid confusion. You will also need to register for GST if your turnover exceeds the threshold.

3. Obtaining licensing and compliance

State-specific agent licensing (e.g., Certificate IV & Agent Licence)

Operating a real estate agency requires the right licence in your state or territory. Requirements vary, but in most cases you will need to complete formal training, such as a Certificate IV in Property Services, followed by an Agent’s Licence. This process ensures you understand legislation, consumer protection, and ethical obligations.

Appointing a Licensee in Charge (LIC)

Every agency must appoint a Licensee in Charge. This person is legally responsible for the conduct of the business and for supervising staff. Even if you are running the agency yourself, you must hold this role. Larger agencies may designate a senior manager to act as LIC, but you must ensure they meet all licensing requirements.

Understanding regulatory obligations (trust account, consumer protection)

Agencies are heavily regulated to protect both buyers and tenants. You need to understand your obligations around trust accounts, which must be managed according to strict rules. Consumer protection laws also place clear requirements on how you advertise, disclose information, and handle client funds.
Key obligations include:

• Opening and maintaining a trust account with an authorised financial institution
• Complying with strict audit requirements
• Meeting disclosure standards when listing or selling property
• Following advertising guidelines to avoid misleading claims

Failing to meet these obligations can result in penalties or loss of licence, so compliance must be central to your operations.

4. Establishing legal and financial foundations

Insurance, trust accounts & risk mitigation

Insurance is essential for managing the risks of running a real estate business. At a minimum, you should consider professional indemnity, public liability, and business interruption policies. Property managers may also require specialised cover for handling tenant funds. Combined with strict management of your trust account, these measures reduce your exposure to financial or legal claims.

Legal guidance for contracts, compliance

Engaging a solicitor early can save you significant costs later. Legal experts can review contracts, prepare standard leasing or sales documents, and advise on compliance with state-based property laws. They can also help you establish employment agreements that set out clear expectations for your staff. Having legal advice available ensures you are not left exposed to disputes or regulatory breaches.

5. Setting up office, operations & team

Choosing physical or virtual office models

Your office is more than a workplace. It is a reflection of your brand and professionalism. Some agencies choose a traditional shopfront in high-traffic areas to increase visibility. Others opt for a virtual office model, relying on digital tools and flexible working arrangements to reduce overheads. The right choice depends on your market, budget, and the expectations of your clients.

Building your team: agents, support staff, consultants

No agency succeeds without the right people. A good real estate agent has communication skills, persistence, and the ability to build trust. Consider MRI’s guidance on what makes a good agent when recruiting. In addition to sales or property management staff, you may need administrative support, marketing consultants, and financial professionals. A strong team helps you deliver consistent service and gives clients confidence in your agency.

6. Implementing systems & technology

Property, client, and financial management software

Technology is no longer optional. You need reliable systems to manage listings, track client interactions, and handle financial transactions. Spreadsheets and paper-based methods leave too much room for error. A purpose-built solution saves time, reduces risk, and improves service. When selecting technology, compare the best software options available to real estate agencies to ensure you invest in a platform that grows with your business.

How MRI Software enhances workflows, compliance & growth

MRI Software provides comprehensive platforms that support every stage of agency operations. From managing trust accounts and property portfolios to automating compliance checks, these tools simplify complex processes. Integrated marketing, client management, and reporting functions help you capture opportunities, respond quickly, and keep pace with regulations. By adopting a system designed specifically for real estate, you are better equipped to scale your agency sustainably.

7. Launching marketing & sales

Brand identity and communication strategy

Your brand is how clients perceive you. It goes beyond a logo to include your tone of voice, visual style, and customer experience. A strong brand identity gives you consistency across all channels and helps you stand out from competitors. Your communication strategy should cover both internal and external audiences, ensuring staff know how to represent the agency and clients know what to expect.

Digital presence, outbound marketing & lead funnels

Marketing is where you turn strategy into visibility. A modern agency needs a strong digital presence, starting with a website that is mobile-friendly, easy to navigate, and optimised with SEO. Social media platforms give you a way to showcase listings and share insights. Paid digital ads can target specific demographics. Offline strategies such as local sponsorships or print materials can complement this.

To generate leads, create funnels that capture interest and nurture potential clients until they are ready to act. Email campaigns, webinars, and community events all help build trust. For practical advice, see MRI’s marketing tips and broader ideas for marketing your agency effectively.

8. Continuous development & compliance

Ongoing professional development and CPD requirements

Professional development is mandatory for licensed agents, but it is also a key driver of success. Each state and territory has Continuing Professional Development (CPD) requirements, which usually involve annual training on property law, ethics, or emerging industry issues. Beyond compliance, ongoing education keeps your staff motivated and ensures your agency delivers best-practice service.

Adapting to new regulations like AML laws

The regulatory environment is always changing. Anti-money laundering (AML) obligations are expanding to include more real estate transactions. Privacy laws are becoming stricter, requiring careful handling of client data. By staying informed and updating your processes, you reduce the risk of penalties and build trust with clients. Regular audits and legal updates should be part of your compliance program.

9. Key legal & regulatory checklist

• Choose a business structure and register your ABN
• Secure your state-based Agent Licence and appoint a Licensee in Charge
• Open and manage a trust account with an approved institution
• Put insurance policies in place
• Establish standard contracts and legal frameworks
• Meet CPD requirements and monitor emerging regulation

Contact MRI Software

Setting up a real estate business is a challenging but rewarding process. With the right research, structure, and systems, you can build an agency that grows sustainably and meets compliance obligations. For tailored solutions that support every stage of your journey, contact MRI Software on 1300 657 700.

FAQs