Foreclosures are still at an all time high. Yet, while that may not be good news for the economy as a whole, for those who are in the foreclosure cleaning business, it can equate to a tidy profit.
Those who are looking to start a foreclosure clean up business will need to have a flexible schedule, as you may be called at various times of the day – or night – to clean properties quickly. Weekend work is also typically the norm.
Although many of the properties will require a great deal of work before they are complete, these jobs can pay quite well, with the average price being between $500 and $2,500 per property.
In addition to payment for property cleaning, you can also earn additional income in the foreclosure cleaning business by selling items that have been left behind in the properties.
Certainly, you will need to verify with the client that this is acceptable. However, if so, you could create an additional income stream in this manner by offering items for sale through online sources such as eBay or Craigslist.
How to Set Up Your Foreclosure Cleaning Business
For those who are just getting started in foreclosure clean ups, there are several steps that are necessary in order to get your business up and running. These include the following:
Step 1) First, you should choose a name for your company, as well as the type of business entity you will be running for legal purposes. For example, will you be a sole proprietor, or will you choose instead to operate as a corporation or Limited Liability Company (LLC)?
Regarding your company’s name, while you don’t have to give it a “catchy” title, it may be wise to go with something that is related to the type of service you provide, such as Foreclosed Home Clean Up Services or a similar name.
Step 2) Next, you will need to obtain any licensing or permits that are required in order to operate your business.
This includes applying for general liability insurance coverage. Likewise, if you plan to hire any employees, you should also check into getting workers compensation insurance.
Step 3) Obtain training and education. Getting all of the necessary training and education is essential for this particular business.
If you are buying into a foreclosure cleaning business franchise, it is likely that the franchisor will already have a set training guide and way of handling business.
If, however, you are starting your business from scratch, you may need to learn the ropes on your own.
Either way, you need to be sure that you have a thorough understanding of how the business should be operated.
Step 4) Start marketing and advertising your company and its services. Once you are prepared with your licenses, permits, insurance, and training, you will be ready to start marketing your services.
One of the best ways to get the word out is to contact banks and “REO” management companies.
REO stands for Real Estate Owned. This area of banks and other financial services companies is the department that deals in foreclosed properties.
Oftentimes, these departments are willing to get these properties off their financial books, and are willing to do whatever it takes to move them – and that includes getting them cleaned up to sell.
You should also market your services to real estate agents, as they, too, will typically have access to numerous properties – many of which may be foreclosures.
The better you can make these properties look, the more likely they are to sell quickly. This can prove to be a win-win situation for both you and the realtor – especially if you get hired by the realtor to clean properties on a regular basis.
In any case, it is a good idea to create a website or to have a website created for you. Most businesses today, whether they are large or small, will have an online presence.
By having a website, you can provide more detail about the services that you offer, the fees that you charge, and how potential customers can get in contact with you.
You can also put “before” and “after” photographs of properties on your website in order to show examples of your work to your website visitors.
This alone can be a great motivator for someone to contact you.
How Much Does It Cost to Get Started ?
The good news is that it does not cost a lot to get started in this business. In most instances, all that you need is a contact telephone and cleaning supplies.
In the beginning, your primary time and effort will be spent on marketing your services.
Once you begin to obtain jobs, there will be physical work involved such as the actual cleaning, as well as climbing stairs, moving large items such as furniture and appliances, and possibly removing items like carpet or flooring tile.
In any case, provided that you have a flexible schedule and are willing to get your hands dirty, your business can be up and running within a very short period of time.
Regardless of whether you start a foreclosure cleaning business as a part-time or a full-time endeavor, once your company is under way, you are likely to make a great deal of income.