Keeping Costs Down: A Guide for New Real Estate Agencies

Here’s a reality check: according to money.com.au, 58.9% of Real Estate Services are still operating three years after they started. That means 41.1% failed within their first three years.

But here’s the encouraging news: it’s all about having solid processes, knowing when to outsource, manage your expenses and cashflow. The agencies that succeed long-term aren’t the ones with the biggest backing—they’re the ones who plan smart from day one.

Hiring permanent staff before you’ve got consistent cashflow is a common mistake. We’ve seen agencies spending $85,000 a year on a Property Manager whilst not generating enough revenue to cover basic business costs. Outsourcing your Trust Account management, Bookkeeping and Admin tasks lets you scale affordably. Virtual receptionists can handle calls professionally without the full-time salary commitment. Once you have the income flowing, then hiring someone part-time to start is certainly the way to go.

Don’t overspend on software features you won’t use. Research Trust Accounting software to find the right fit for your budget and needs. The wrong choice can cost you hundreds monthly in unnecessary subscription fees and may not be suitable for where your business is headed.

Understanding your Trust Account obligations and state-specific legislation requirements prevents costly fines from your industry body. Investing in proper compliance support from the start protects your reputation and sets you up for future success.

Before heading to Officeworks, work out what’s truly essential. Let’s remember it’s 2025—we don’t need to print everything and file it in those good old lever arch folders anymore. A decent computer, monitor and peripherals, plus a great VoIP system that works on your mobile, really is all you need to start running your agency.

If you’re set up as a company, you need to ensure you have WorkCover, Professional indemnity, Public liability, and Cyber insurance as the bare minimum. Consider monthly payment plans to ease cashflow pressure.

Success isn’t about luck—it’s about establishing solid processes, knowing when to outsource, and keeping tight control over your expenses and cashflow from day one. Need expert guidance on Trust Accounting, Compliance, or Bookkeeping? Our friendly team of Angels is here to help your agency join the 58.9% that are still thriving three years later.