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Foreclosure Cleaning Business Idea

By learning how to start a foreclosure cleaning business, you can find a financial opportunity in the current and any future economic downturns. Before choosing this type of endeavor, make sure that you understand what it involves.

In addition to standard household cleaning tasks, your new cleaning business will be required to remove all of the trash and debris that was left behind by the former occupant. Unlike a standard vacancy, the former residents may not have had a place to store all of their possessions or they may have damaged the house before moving out.

While some foreclosed homes may be in a fairly orderly condition, others will be stripped, vandalized, or completely full of unwanted items.

How To Start A Foreclosure Cleaning Business – Supplies and Equipment

When you learn how to start a foreclosure cleaning business, you’ll obviously need to stock up on chemicals, brooms, mops, vacuums, and buckets. Invest in a dependable van to transport the clean-up team and supplies to the foreclosed property. Although it doesn’t have to be brand new, your work vehicle should be clean and well-maintained.

Prominently display your company logo on the side as an advertising tool. If a foreclosed property has quite a bit of debris, plan on renting dumpsters for easy removal. In some cases, you may even need a few hand and power tools to complete the clean-up. Hire a few people that can lift heavy items for your crew.

Expert Knowledge Is A Requirement

While you don’t need any special training or certification to learn how to start a foreclosure cleaning business, many real estate agencies and financial institutions may only work with licensed, bonded, and insured companies. You, or your cleaning team, should have expert knowledge of the cleaning equipment and chemicals.

Because many financially-challenged home owners can’t afford to maintain their homes for extended periods of time, set-in stains on a variety of materials may need to be addressed. It will be important to know when a surface is salvageable, and when it should simply be replaced.

Keys to a Successful Foreclosure Cleaning Business

To become successful after you learn how to start a foreclosure cleaning business, it is critical that you understand how to accurately estimate the true cost of a job and create a competitive bid. If you underestimate your expenses, you’ll have a hard time making a profit. On the other hand, if your bid is too high, the work will be granted to another contractor.

Before taking on a job, view the property to determine exactly what will be required to return the property to a salable condition. In some cases, you might have to hire additional contractors in addition to your cleaning team. Once a customer is comfortable with your services and trusts you to deliver a fair price, they may decide to use your business exclusively.

When you take on a job, make sure that your contract specifies the exact services that will be provided. Once you begin a job, make sure that you deliver on your promises.

Finding Customers for Your Cleaning Business

Because banks and mortgage companies usually begin the foreclosure process, many people who learn how to start a foreclosure cleaning business think this should be their primary source of customers. However, most banks aren’t interested in taking part in the real estate business. Instead, they contract the property management responsibilities to real estate agents that specialize in foreclosures.

These are the people that you will want to impress with both your cleaning skills and your professional attitude. Research the local areas to determine the major players in your foreclosure market. Meet with each one to explain why your foreclosure cleaning business is the best one in the area.

Expanding Your Operations

Expanding a foreclosure cleaning business could take many forms. Here are a few ideas for when you’re ready to take your business to the next level:

  • Add cleaning offices, homes, or vacation rentals to your list of services.
  • Hire your own staff of contractors to completely renovate homes that are for sale.
  • Start your own real estate company that specializes in foreclosures.
  • Purchase a few of the homes and create a rental portfolio. After all, you have a chance to get an early look at potential bargains.

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