What Is a Brokerage for Rent? Understanding Fees and How to Avoid Them

When you’re looking for a place to rent in Melbourne, you’ve probably seen ads that say "no broker fees" or "rental without brokerage." But what exactly does that mean? And why do some landlords charge you a brokerage fee in the first place? The truth is, a brokerage for rent isn’t a government fee or a legal requirement-it’s a charge some agents add on top of your rent, and you don’t always have to pay it.

What Is a Brokerage for Rent?

A brokerage for rent is a fee charged by a real estate agent when they help you find and secure a rental property. It’s usually a percentage of your monthly rent-often between 50% and 100%-and it’s paid upfront, sometimes before you even sign the lease. For example, if your rent is $2,500 a month, you might be asked to pay $1,250 to $2,500 just to get the keys.

This fee covers the agent’s time: listing the property, showing it to you, processing your application, and handling paperwork. But here’s the thing: in many cases, the landlord already pays the agent. That means you’re being charged twice-for a service that’s already been paid for.

In Victoria, there’s no law that says tenants must pay brokerage. The Residential Tenancies Act 1997 doesn’t allow agents to charge tenants for finding a property unless it’s clearly stated in writing before you sign anything. Even then, many tenants don’t know their rights-and agents count on that.

Why Do Agents Charge Brokerage Fees?

Agents charge brokerage fees because it’s profitable. In a tight rental market like Melbourne’s, demand is high and supply is low. Tenants are desperate. They’ll pay extra just to get a roof over their head. Agents know this. They’ll list the same property on multiple platforms, show it to dozens of people, and then charge whoever signs first.

Some agents even create fake urgency: "Only one person viewed this unit today-sign now or you’ll lose it." Then they hit you with a $2,000 brokerage fee on top of your first month’s rent and bond. That’s $5,000 out of your pocket before you even move in.

But here’s the reality: most agents aren’t doing anything you couldn’t do yourself. They’re not negotiating your rent. They’re not fixing the leaky tap. They’re just connecting you to a listing they already have.

How to Find Rentals Without Brokerage Fees

You can find a place without paying a brokerage fee. It just takes a little more effort. Here’s how:

1. Use government and community portals-Check Housing Victoria and local council listings. These are free and often include properties managed by housing associations.
2. Search directly on landlord websites-Many private landlords list their own properties on Facebook groups like "Melbourne Rental Listings" or on Gumtree. Look for posts that say "landlord direct" or "no agents."
3. Join tenant forums-Reddit’s r/MelbourneRentals and local Nextdoor groups have hundreds of posts daily. People often post when they’re subletting or moving out and need someone to take over.
4. Ask at local cafes and shops-In areas like Fitzroy, Collingwood, or Brunswick, many landlords post rental notices on community boards. No agent involved.
5. Call property managers directly-If you find a listing through an agency, call the property management company and ask: "Is the tenant responsible for a brokerage fee?" If they say yes, walk away. Most reputable property managers don’t charge tenants.

One tenant in Footscray found a two-bedroom apartment for $2,300/month with no brokerage by responding to a Facebook post from a landlord who was relocating overseas. She sent a photo of her payslips, a reference from her last landlord, and moved in two days later. No agent. No fee.

What Fees Are Actually Legal?

Just because brokerage is illegal doesn’t mean all fees are. Here’s what you can be charged under Victorian law:

• Rent-the agreed monthly amount
• Bond-up to one month’s rent, held by the Residential Tenancies Bond Authority (RTBA)
• Weekly rent in advance-usually one week’s rent before moving in
• Utility connection fees-if you’re setting up electricity, gas, or internet for the first time
• Changing locks-only if the landlord requests it and you agree in writing

Anything else? Illegal. That includes:

• Application fees
• Administration fees
• Brokerage fees
• Background check fees
• Processing fees

Even if the agent says "it’s standard," it’s not. The Victorian Civil and Administrative Tribunal (VCAT) has ruled against agents multiple times for charging these fees. In 2024, a Melbourne agent was fined $12,000 for charging five tenants $1,500 each in "processing fees." The court said: "These are not services. They are just a way to extract money."

What to Do If You’re Charged a Brokerage Fee

If you’ve already paid a brokerage fee and you’re not sure it was legal, here’s what to do:

1. Get a receipt-Even if it’s just a text message or email, keep proof of payment.
2. Ask for a breakdown-Email the agent and ask: "What service did I pay for? Please itemize the cost." Most won’t reply.
3. Report it-File a complaint with Consumer Affairs Victoria (CAV). You can do it online in under 10 minutes. They’ll investigate and can force the agent to refund you.
4. Apply for a refund through VCAT-If the agent refuses, you can apply for a hearing. Many tenants win these cases without a lawyer.

In 2023, over 380 tenants in Victoria successfully reclaimed over $700,000 in illegal fees. You’re not alone. And you’re not wrong to demand your money back.

Why Avoiding Brokerage Fees Matters

Paying a brokerage fee isn’t just unfair-it’s financially dangerous. For many renters, especially young people, students, or those on fixed incomes, that extra $1,500 or $2,000 could mean skipping a meal, missing a bill, or delaying medical care.

When you avoid brokerage fees, you keep more money in your pocket. You can use it for moving costs, furniture, or even a security deposit for your next place. You also send a message: you won’t be exploited.

Landlords who list directly often offer better terms. No agent means less pressure. More flexibility. Sometimes even lower rent. One landlord in St Kilda lowered his rent by $150 a month after he realized he was losing tenants to cheaper, no-fee listings.

Final Thought: You Have Power

The rental market feels stacked against you. But you’re not powerless. You don’t need an agent to find a home. You don’t need to pay to live somewhere. The system relies on your silence, your hurry, your fear of missing out.

Take your time. Do your research. Ask questions. Say no to fees that aren’t legal. There are thousands of rentals in Melbourne that don’t charge brokerage. You just have to look in the right places.

And when you do find one? You’ll realize the truth: the best rental deals aren’t found through agents. They’re found by tenants who refused to pay extra just to live somewhere.