Rental Brokerage Fee Calculator
When you’re looking for a new place to live in Sydney, the last thing you want is to get hit with a surprise fee right before signing the lease. Many renters assume the landlord pays everything - but that’s not always true. In Australia, it’s common for tenants to pay a brokerage fee, also called a leasing fee or rental commission. And yes, it can add hundreds - even over a thousand dollars - to your move-in costs.
How much do you actually pay for a rental agent?
In New South Wales, the average brokerage fee for renting a property is between 50% and 100% of one week’s rent. That means if your rent is $600 a week, you could be charged anywhere from $300 to $600 just to secure the home. This fee is usually due upfront, often before you even get the keys. It’s not optional if you use an agent - and most people do.
Some agents charge a flat rate, others take a percentage. A few still use the old model of charging one full week’s rent. There’s no law forcing them to stick to one formula, so prices vary wildly. In high-demand suburbs like Surry Hills or Bondi, fees are more likely to hit the top end. In quieter areas like Liverpool or Parramatta, you might get lucky and pay closer to 50%.
What makes it worse? Many tenants don’t realize they’re being charged until they’re handed the lease. Agents aren’t required to disclose the fee upfront in writing before you sign anything. That means you could be looking at 10, 20, or even 30 properties before you learn the cost - and by then, you’re emotionally invested.
Why do agents charge tenants at all?
Traditionally, landlords paid the agent. But over the last decade, the market shifted. With rental demand outpacing supply and property prices soaring, many landlords now pass the cost onto renters. Some agents argue they’re doing extra work - showing properties, screening applicants, managing paperwork - so they need payment from both sides. Others say it’s just easier to collect from the tenant who’s desperate to move in.
There’s no legal requirement in NSW for landlords to cover the fee. The Residential Tenancies Act doesn’t mention brokerage fees at all. That leaves it up to the agent and the landlord to decide. And since most agents work for the landlord, not the tenant, they have little incentive to lower the fee.
Can you avoid paying a brokerage fee?
Yes - but you have to work harder.
The easiest way to skip the fee entirely is to rent directly from the landlord. These are called ‘private rentals’ or ‘for rent by owner’ listings. You’ll find them on Facebook Marketplace, Gumtree, and even local community boards. Some landlords list on domain.com.au or realestate.com.au with a note like ‘No agent, no fee’.
But here’s the catch: private rentals are harder to find. You’ll need to check listings daily, respond quickly, and be ready to move fast. Many of these properties get snapped up within hours. You’ll also need to handle more of the legwork - scheduling viewings, negotiating terms, and understanding your rights without an agent to guide you.
Another option: rent through a government or community housing provider. In NSW, organizations like Housing NSW or community housing associations often have vacancies with no brokerage fees. These are usually for people on low incomes, but some are open to others depending on availability.
There’s also a growing trend of digital rental platforms like Flatmates is a platform that connects renters directly with landlords or co-tenants, cutting out the middleman. They charge a small service fee - often under $100 - instead of a full week’s rent. It’s not free, but it’s a fraction of what traditional agents charge.
What’s included in the brokerage fee?
Don’t assume you’re paying for luxury service. In most cases, the fee covers:
- Advertising the property on major portals
- Showing the property to multiple applicants
- Collecting applications and running background checks
- Preparing the lease agreement
- Coordinating the move-in inspection
It doesn’t cover ongoing management. If you want someone to collect rent, handle repairs, or deal with issues after you move in, that’s a separate property management fee - usually 7% to 10% of monthly rent. That’s a different charge, and it’s often paid by the landlord.
Some agents try to upsell you on ‘premium services’ - like professional photography, virtual tours, or expedited applications. These are optional and should be clearly labeled as such. If they’re rolled into your brokerage fee without your consent, that’s not legal.
What should you do before signing anything?
Here’s a quick checklist before you hand over your money:
- Ask for a written breakdown of all fees - in writing, not just a verbal promise.
- Confirm whether the fee is refundable if you change your mind or the lease falls through.
- Check if the agent is licensed by NSW Fair Trading. You can verify this on their website.
- Compare the fee to other listings in the same suburb. If one agent charges $700 and another charges $350 for the same type of property, ask why.
- Never pay in cash. Always use traceable methods like bank transfer or credit card.
If you feel pressured to pay quickly, walk away. Legitimate agents won’t rush you. If they do, it’s a red flag.
Are there places where brokerage fees don’t exist?
In Victoria, rental agents are banned from charging tenants any fees - not even for admin or application checks. That law changed in 2021, and it’s been a game-changer. Tenants there save an average of $500 per move.
Queensland allows fees, but caps them at one week’s rent. South Australia and Western Australia have no caps, but fees are less common than in NSW.
So if you’re flexible on location, consider looking outside NSW. You might find better deals in Melbourne or Brisbane - even if rent is slightly higher, you’ll save hundreds upfront.
What’s the real cost of using a broker?
Let’s say you’re renting a $700/week apartment in Sydney. Your brokerage fee is $700. That’s one full week’s rent - paid upfront, on top of your bond (usually four weeks) and one month’s rent in advance. So your total move-in cost? Around $4,200.
Now imagine you found the same place through a private landlord. No brokerage fee. Your move-in cost? $2,800. That’s $1,400 saved - enough to cover your first month’s groceries, a new mattress, or a few months of public transport.
That difference isn’t small. It’s life-changing for people on tight budgets. And it’s why more and more renters are choosing to go direct.
Final thought: Is the fee worth it?
For some, yes. If you’re new to renting, don’t know your rights, or have a busy job, an agent can make things easier. But you’re paying for convenience - not protection. The agent works for the landlord, not you. They don’t negotiate your rent. They don’t fight for repairs. They don’t protect your bond.
For most people, especially those who are organized and willing to put in a little time, avoiding the fee is the smarter move. You’ll save money, learn more about the rental market, and gain confidence in handling your own housing search.
The bottom line: you don’t need an agent to find a home. You just need to know where to look - and what to ask.
Do I have to pay a brokerage fee when renting in Sydney?
No, you don’t have to pay a brokerage fee - but if you use a real estate agent, you likely will. The fee is not legally required, and landlords can choose to pay it instead. Many don’t, so tenants end up paying. You can avoid it by renting directly from the owner or through platforms like Flatmates.
How much is the average brokerage fee in NSW?
The average brokerage fee in New South Wales is between 50% and 100% of one week’s rent. For a $600/week property, that means $300 to $600. Some agents charge a flat rate, others take a percentage. There’s no standard, so always ask for a written quote before paying.
Can I negotiate the brokerage fee?
Yes, you can - but it depends on the agent and the market. In slower rental periods or less competitive suburbs, agents may lower the fee to secure a tenant. If you’re offering a long lease, good credit, or a pet-friendly setup, you have more leverage. Always ask. You won’t know unless you try.
Is the brokerage fee refundable?
Usually not. Most agents consider the fee non-refundable once you’ve signed an application or paid. Some may refund it if the landlord rejects your application - but that’s rare. Always ask in writing before paying. If they won’t put it in writing, don’t pay.
What’s the difference between a brokerage fee and a property management fee?
The brokerage fee is paid once - when you sign the lease - to secure the property. The property management fee is ongoing, usually 7% to 10% of your monthly rent, and covers services like rent collection, maintenance coordination, and inspections. This fee is almost always paid by the landlord, not the tenant.
Are there any free rental platforms in Australia?
Yes. Facebook Marketplace and Gumtree have thousands of ‘for rent by owner’ listings with no agent fees. Apps like Flatmates also connect renters directly to landlords for a small service fee - far less than traditional brokerage. Government housing providers also offer vacancies with no fees, though eligibility rules apply.
If you’re renting in Sydney, your biggest advantage isn’t having an agent - it’s knowing your options. The market is stacked against renters, but you’re not powerless. Do your homework, ask the right questions, and don’t be afraid to walk away. The right place won’t cost you a fortune just to get in.