What is the average brokerage fee for renting a property in Australia?

If you’ve ever looked for a rental in Sydney, you’ve probably heard the phrase brokerage fee-and maybe even been shocked by how much it costs. In many parts of Australia, landlords don’t pay agents to find tenants. You do. And that fee can easily be half a month’s rent-or more. But here’s the truth: you don’t always have to pay it. Many people are learning how to rent without a broker, and saving hundreds or even thousands of dollars in the process.

How much is the average brokerage fee in Australia?

In Australia, the standard brokerage fee for renting a property is usually between 50% and 100% of one week’s rent. That means if your rent is $600 per week, the agent might charge you $300 to $600 just to process your application and hand over the keys. Some agencies charge a flat fee instead-often between $400 and $800-regardless of rent amount.

These fees are legal in most states, including New South Wales, Victoria, and Queensland. But they’re not universal. In South Australia and the Northern Territory, agents can’t charge tenants at all-the landlord pays. And in Tasmania, fees are capped at one week’s rent. So where you live matters a lot.

Here’s what you’re actually paying for: the agent spends time showing you units, collecting your documents, running background checks, coordinating inspections, and submitting your application to the landlord. But here’s the catch: they’re doing the same work whether you’re renting a $400-a-week studio or a $1,200-a-week penthouse. The fee doesn’t scale with rent. It’s a flat charge, often hidden in fine print.

Why do agents charge tenants instead of landlords?

It’s not about fairness. It’s about market pressure. In cities like Sydney and Melbourne, demand for rentals is high and supply is low. Landlords know they can get tenants quickly. So they don’t feel the need to pay agents to find them. Instead, they pass the cost to renters. The agent, eager to close a deal, doesn’t push back-because they know you’re desperate.

Some landlords even list properties through agents specifically because they want to avoid dealing with applicants themselves. They think, “Let the agent handle the mess.” But that mess? It’s your money.

There’s no law in NSW or VIC saying landlords must pay. So unless the lease says otherwise, the tenant foots the bill. That’s why you’ll see ads like “$750 rent, $500 brokerage fee” and wonder if you’re being scammed. You’re not. You’re just caught in a system that’s stacked against renters.

Can you avoid paying a brokerage fee?

Yes. And more people are doing it every day.

The easiest way is to rent directly from the landlord. Many owners manage their own properties. You’ll find them on Facebook Marketplace, Gumtree, or even on signs outside the unit. These listings often say “Owner-occupied” or “No agents.” They might not look as polished as agency listings, but they’re honest.

Another option: use a tenant-only service like Rent.com.au or Rent.com. These platforms let you search for properties without agents. Some even have filters for “no brokerage fee.” You still need to apply, but you skip the middleman entirely.

Or try walking around neighborhoods you like. Look for “For Rent” signs. Call the number. Ask if the landlord handles applications themselves. More often than not, they will. And they’ll be happy to skip the agent’s cut.

In 2024, a survey by the Tenants’ Union of NSW found that 37% of renters who avoided agents saved between $400 and $1,200 on their move-in costs. That’s not pocket change. That’s a month’s groceries, or a new laptop, or a security deposit for your next place.

What’s the real cost of renting with an agent?

Let’s say you’re renting a two-bedroom apartment in Marrickville for $700 per week. The agent says the fee is $700-100% of one week’s rent. You pay it. You move in.

But here’s what you’re not seeing:

• The agent spent 3 hours showing you the unit. You could’ve done that yourself.
• The application form they gave you? It’s the same one every agency uses.
• The credit check? You could’ve run it yourself for $15 through MyCreditFile.
• The landlord didn’t pay a cent.

You paid $700 for convenience. But convenience shouldn’t cost you a month’s rent. Especially when you could’ve done it all for free.

What should you do before you sign anything?

Before you hand over any money, ask these three questions:

1. Who is paying the agent? (Landlord or tenant?)
2. Can I see the fee in writing? (It must be in the tenancy agreement or a separate fee schedule.)
3. Is this fee refundable if my application is rejected?

In NSW, agents are required to give you a written fee disclosure before you pay. If they don’t, you can refuse to pay-and report them to Fair Trading. In Victoria, the same rule applies under the Residential Tenancies Act.

Also, never pay cash. Always use traceable methods: bank transfer, PayPal, or BPAY. Keep receipts. If something goes wrong, you need proof.

Where are brokerage fees banned or capped?

Not all of Australia lets agents charge tenants. Here’s the breakdown:

If you’re in SA, NT, or ACT, you should never be asked to pay a brokerage fee. If an agent tries to charge you, tell them you know the law-and if they persist, contact your local tenancy tribunal. They’ll back you up.

What’s the alternative to paying a brokerage fee?

There are three real alternatives:

• Rent directly from the owner. Search Facebook Marketplace and Gumtree with keywords like “no agent,” “owner,” or “private landlord.”
• Use a tenant-only platform. Sites like Rent.com.au, Rent.com, and RentFind let you filter for properties without agent fees.
• Ask around. Talk to neighbours, coworkers, or people in local community groups. Often, someone knows of a rental that’s not advertised.

One Sydney renter, Sarah, found her two-bedroom unit in Newtown by posting in a local Facebook group: “Looking for a rental without agent fees.” Within 48 hours, she had three responses. She chose one from a retired couple who managed their own property. She saved $850 on move-in costs.

She didn’t get a fancy brochure. She didn’t get a professional photoshoot. But she got a clean, quiet home-and $850 in her bank account.

What if the landlord insists on using an agent?

That’s their right. But you still have power. You can:

• Ask if they’ll cover the fee.
• Offer to pay a reduced fee-say, $300 instead of $700.
• Propose to handle your own references and credit check to reduce their workload.

Landlords aren’t always aware of how much these fees cost tenants. If you explain that you’re willing to move quickly if the fee is lowered, many will agree. They just want a good tenant.

And if they say no? Walk away. There are other places. Other landlords. Other options.

Final thought: Your time isn’t worth $700

It’s easy to think, “I don’t have time to hunt for rentals myself.” But spending 10 hours searching online is better than losing $700. You’re not just paying for convenience-you’re paying for someone else’s profit.

Agents are part of the system. But you don’t have to play by their rules. More and more renters are choosing to rent without brokers. And they’re not just saving money-they’re taking back control.

You don’t need an agent to find a home. You just need to know where to look-and the courage to skip the fee.