The Complete Guide to the Cost of Starting a Property Agency in Malaysia (2026)
Dreaming of building your own real estate firm? The upside is real—but so is the need for ruthless financial planning. Many passionate agents don’t fail for lack of deals; they fail because they undercapitalise and misjudge cash-flow timing.
This isn’t just “get a licence and rent an office.” It’s about knowing the capital to survive Year 1, steady out in Year 2, and compete long-term. Below is a clear, numbers-first plan for 2026—from one-off setup to the hidden cash-flow monster of project sales.
Executive Summary — 10-Second Snapshot
- First-year cash outlay: ≈ RM340,000–RM400,000
- Annual running cost (steady state): ≈ RM303,000–RM321,000
- Project sales wildcard: keep a separate reserve of RM300,000–RM1,000,000 for advances
- Assumption: You’re an active owner-operator drawing market-rate salary; no separate CEO/GM cost
One-Off Setup Costs (CapEx)
Capital to open your doors. Renovation is the main swing factor.
| Item | Amount / Range (RM) | Notes |
|---|---|---|
| Renovation | 10,000 – 50,000 | From simple refresh to partitions + meeting room. |
| Computers & software | ~10,000 | Workstations, OS, office suite, antivirus, cloud basics. |
| Electricity deposit (TNB) | ~3,000 | Depends on declared load/usage. |
| Water deposit | ~200 | Typical for commercial premises. |
| Rental deposit | ~4,500 | ≈ 3 months at ~RM1,500/month. |
| Internet deposit (Unifi) | ~300 | Standard deposit. |
| Company setup (Sdn Bhd) | ~3,000 | Incorporation + basic filings. |
| Website (corporate) | ~3,000 | Credible site with essential pages. |
| Trademark filing (one-off) | ~1,000 | Protects name/logo for long-term brand value. |
Total (range): RM35,000 – RM75,000
Monthly Recurring Costs (OpEx)
Baseline assumes one car park bay and ListingMine ERP is free at ≤50 agents; once you exceed 50 users, ERP is RM1,500/month.
| Item | Amount (RM) | Notes |
|---|---|---|
| Office rental | 1,500 | Keep fixed costs lean while building pipelines. |
| Administration & finance staff | 4,000 | One full-time admin. |
| Agency principals (two REAs) | 10,000 | ~RM5,000 each/month; no separate CEO/GM. |
| Employer statutory (EPF/SOCSO/EIS) | 2,400 | ~17% on admin (RM4k) + principals (RM10k). Varies by caps/age/director status. |
| Cleaning | 1,000 | Outsourced or part-time. |
| Internet (Unifi) | 150 | 100–300 Mbps is usually sufficient. |
| Electricity & water | 1,500 | Light office usage. |
| Photocopier rental | 100 | Entry-level plan. |
| Season car park | 200 | Per car; baseline uses one bay. |
| Telephone (office line + calls) | 300 | Breaks out from utilities for clarity. |
| Staff welfare | 500 | Small monthly care pool. |
| Travel | 500 | Local transport, mileage, tolls, parking. |
| ListingMine ERP | 0 | RM0 at ≤50 agents; RM1,500 once >50. |
| Branding & awareness ads | 500 | Always-on, modest digital presence. |
Total (monthly baseline): RM22,650
Total if >50 agents: RM24,150 (adds RM1,500 ERP)
Annualised from monthly
- Baseline: RM271,800 (RM22,650 × 12)
- If >50 agents: RM289,800 (RM24,150 × 12)
Expect small “drips”: bank/merchant fees, pantry/office supplies, and optional cloud tools (e.g., Zoom/Canva) if/when you outsource creative.
Annual Costs
Bills that hit once a year but keep you compliant and professional.
| Item | Amount (RM) | Notes |
|---|---|---|
| Audit & company secretarial | ~6,000 | Governance + statutory filings. |
| Legal fees (advisory/contracts) | ~10,000 | Routine compliance + commercial docs. |
| Gifts (partners) | ~10,000 | Relationship/partner management. |
| Professional Indemnity (PI/E&O) | ~1,000 | Small-practice coverage. |
| Hosting, software, stationery | ~2,500 | Email/website/backup + accounting SW + stationery. |
| Medical claim (staff) | ~1,200 | Basic annual pool. |
Total (annual): RM30,700
Also plan for (not in total): BOVAEP renewals (firm & REA licences), CPD/training, office insurance, domain/SSL renewals (if separate from hosting).
Callout: Why This Budget Assumes ListingMine
Many vendor ERPs charge customisation/change-order fees on top of subscription—commonly RM30,000 per quarter (~RM120,000 per year). Because ListingMine lets ops reconfigure commission schemes without paid custom work, you can avoid that RM120k/yr drag and protect your margins.
The Total Picture: First-Year & Steady-State
Year 1 outlay = CapEx + (Monthly × 12) + Annual
- Low end: RM35,000 + RM271,800 + RM30,700 = ≈ RM337,500
- High end: RM75,000 + RM289,800 + RM30,700 = ≈ RM395,500
Plan for ≈ RM340,000 – RM400,000 in Year 1.
Year 2+ (steady state) = (Monthly × 12) + Annual ≈ RM302,500 – RM320,500
Reality check: cost creep happens (extra car parks, training/recruitment events, inflation). A ~RM300k+ steady-state for a subsale-and-rental model is typical.
Project Sales Warning: Why You May Need a RM1,000,000 War Chest
Developers can take 3–6 months (and in worst cases 2–3 years) to release commissions. To recruit and keep top negotiators, many firms advance partially or full commission soon after SPA signing and recover it later.
- Treat advances as a ring-fenced reserve, not OpEx.
- Minimum safe reserve: RM300,000
- Ambitious pipelines: Up to RM1,000,000
- About financing: P2P/invoice facilities can bridge gaps, but terms change. If they tighten, trust erodes fast. Best practice: maintain your own cash reserve and use financing sparingly.
Strategic Advice for Launch
- Start scrappy on marketing: design ads + write copy yourself to learn what resonates. Outsource after message-market fit (use freelancers first to avoid fixed overhead).
- Nail the commission scheme: be competitive, clear, and leave a real margin after overheads. Stress-test with paper math (deal size, fall-through, support costs, statutory, ERP, “drips”).
- Ask the hard question: If you lack a proven scheme, dependable lead flow, and cash to buffer developer timelines, consider staying a team leader under a larger brand—near-zero fixed cost, unlimited overrides.
Disclaimer
The information in this guide is for reference and education only . Figures are illustrative estimates and vary by location, vendors, utilities, taxes, regulations, and your policies. This is not financial, legal, accounting, tax, or compliance advice and does not create an advisory relationship. Do not rely on these figures to start or operate an agency. Seek professional advice, verify costs with written quotations, and review current laws, rules, and BOVAEP requirements. You are solely responsible for your decisions and outcomes.
