This post is also available in: Melayu (Malay)
Starting a Real Estate Agency in Malaysia is the Key to a Fresh Future
Become the realtor of your dreams by starting a real estate agency in Malaysia. 3E Accounting is ready to open doors for you.
Starting a real estate agency in Malaysia can be an enriching experience. The business is hard work as the hours are long and you may have to give up your weekends. Further, clients can be difficult, demanding and very taxing. Yet, the sense of achievement when you finally close a sale can be quite fulfilling.
The global property industry is in turmoil now due to the fallout from the pandemic. Malaysia is no exception to the rule – the recent property market boom has undoubtedly taken a bit of a downturn. However, the underlying truth is that there will always be a market for property.
All realtors must be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA). Also known as Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta, LPPEH was established under the purview of the Ministry of Finance to govern and regulate agents. All real estate agencies or firms are regulated by the Malaysian Estate Agency Standards.
A real estate agent must be owned or started by a licensed real estate agent registered with BOVAEA. The type of firm can be a:
- Sole proprietorship – proprietor must be registered.
- Partnership – both partners must be registered.
- Sdn. Bhd. (Corporate Company) – minimum of two directors must be registered.
There is a difference between A Real Estate Agent (REA) and a Real Estate Negotiator (REN). REAs are licensed and must pass a series of examinations to qualify. This is followed by two years of field training experience and a Test of Professional Competence to attain a Diploma in Estate Agency.
RENs do not have a license but must be accredited and registered with BOVAEA. They must also attend a Negotiator’s Certification Course and be attached to an agency to work in the industry.
A real estate agency can have a maximum of 20 REN for each qualified REA in the agency. Agencies or firms can charge a 3% fee on the property value and 10% fee on the sale of machinery, furniture, etc.
Starting an agency in Malaysia is an exciting career move, but it doesn’t stop at just setting the company up. You will need to ensure that your business is trending and is a household name in the property market.
Everything from renting serviced offices to hiring the right people and having excellent website design and development must be seen to. 3E Accounting has the perfect suite of business solutions to help you in starting a real estate agency in Malaysia.
Contact 3E Accounting today for customizable solutions to all your business needs.