Let’s look at the 10 steps to take in order to set up your Real Estate business.

10 steps to setting up your Real Estate Agency

  1. Apply for your ABN

    You can apply for your ABN direct with the Australian Business Register. It is quick and easy. Don’t be fooled by businesses charging to do this for you. It takes minutes to do and an ABN emailed to you soon after completion. When you do this, you need to indicate your business structure. Are you starting out as a Sole Trader or a Company? Partnership or Trust?

    Many first-time business owners start out as a Sole Trader. Discuss the best structure for your business with your Accountant and review regularly as you grow and your business needs change.

  2. Choose a business name

    Oh, what’s in a name? Lots, actually. Choosing a business name is right up with like choosing your child’s name. Brainstorm and pop down your favourites. Then head over to ASICs business names checker to check your name is available or taken. Again, some businesses charge to do this for you – yet it’s so simple to do yourself!

    Another hint here is to also check the domain name is available for your business. This is the URL for your website and ideally, you want your business name and URL to be the same. VentraIP is a great Australian-based domain and hosting provider. Check their domain checker to see if your desired domain is also available at the same time.

  3. Class 1 Licence

    A Class 1 license holder of the trust account means that person is in charge of the supervision of the Trust Account. This may be you or allocate to a staff member with the right qualifications, or outsource.

  4. Licensee in charge

    Licensees who run a business that is regulated under the Property and Stock Agents Act 2002 must ensure that no part of the business is left unsupervised by a licensee in charge (LIC). An LIC is responsible for the proper supervision of the business of which they are in charge and must hold a Class 1 Real Estate Agent’s licence. There may only be one LIC authorising withdrawals from a Trust Account.

  5. Apply for a Corporation licence

    If you want to conduct business in Real Estate, stock and station or strata management, it will need a corporation property licence. To apply you must be a Director with a Class 2 or Class 1 Agent license.

  6. Branding and signage

    Once you have your name and licensing sorted, it’s time to get creative and finalise your branding. This will include a logo and any other marketing materials you require such as business cards, signage for the office, a website and your social media. Engage a professional to assist you as this is the first impression your business will make.

  7. Trust Accounting software

    We covered your recommendations for your Trust Accounting and General Accounting options in our previous post. If you are looking to handle this internally then get up-to-date on how to manage your software (we have loads of articles to help you), otherwise, look to outsource to a Trust Account Management Agency (such as us!) to help take this off your hands.

  8. Get insured

    Insurance – something we loathe but is a must-have. Chat with an insurance broker to help find you the best deal on your insurance. This may include public liability and professional indemnity insurance. There is also a market now for cyber insurance due to the increased risk of online business and hacking.

  9. Policy & procedures manual

    Trust us, get this one underway right at the start of your business and save many future headaches! Even if you are starting out on your own, chances are your business will grow and you will bring on new staff. A policy and procedures manual will lay out the law of the land, outlining how you get things done.

  10. Find yourself an accountant, bookkeeper and auditor who specialise in real estate

    We’ve left the best til last. Build a team around you that specialises in the industry, that understands your business, your clients and your relevant legislation. This team will have your back as you grow and expand into new markets. They are there to help when legislation changes to ensure you are up-to-date.

    It may seem like you are outsourcing at the start, but the results will pay you back ten-fold. Ensure to find a dedicated auditor who specialises in Trust Accounting. Your standard accountant won’t cut it. The industry is too unique to depend on general accounting advice.

Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.