How to Start a Foreclosure Clean Up Business

Foreclosure clean up businesses are business services that step in and get property that has been repossessed ready for resale. This type of service has become a booming business opportunity, owing to the increased number of foreclosures that have taken place during the latest economic crisis. If you want to start up this type of business, here are some things to keep in mind.

First, decide what type of cleanup services you plan on offering. Will you handle basic cleanup of the interior, such as washing down walls, cleaning carpets, and in general cleaning the space from top to bottom? Or will you go beyond this to such issues as painting, installing new carpeting, refinishing floors, and landscaping the yard? Knowing what you are willing to provide in the way of foreclosure clean up will make it much easier to attract the right clients.

With your roster of services in place, you need to think of a catchy name that will be easy for people to remember. Including something about foreclosure clean up in the name will cut down on confusion with maid services and similar businesses. At the same time, keep the name as short as possible, as this will also maximize the possibility of people remembering and passing on the name of your business to interested parties.

Get yourself licensed, bonded, and insured. While all this may not be necessary to comply with local regulations, they will go a long way toward winning the confidence of potential clients. It will also provide you with proper protection in the event something happens to a property while it is in your care.

If you plan on offering a full suite of cleanup options, chances are you will need to establish working agreements with other professionals in the area, especially if you do not want to maintain a full time staff. This means that you want to find plumbers, electricians, locksmiths, painters, and others who are properly licensed, bonded, and insured. With a solid list of subcontractors in place, you can then move on to opening the business and beginning to solicit clients.

To find the clients you want, make the rounds to finance companies and other businesses that handle foreclosures. Be prepared to leave them with brochures and other materials that outline what you have to offer, as well as a price list for each of the services. At the same time, join the local chamber of commerce and make it a point to attend chamber events. This will help increase your visibility in the business community, and make it easier to connect with the right clients.

Keep in mind that it will take time to get the business rolling. For this reason, make sure you have enough seed money to keep the business going for at least a year, even if no money at all comes in. Time and word that you do good work will bring more customers, and allow your business to become a profit making venture. Take it slow, never take on more than you can reasonably manage, and your business will thrive for many years to come.


Related Posts