ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Foreclosure Clean Up Business: 5 Things You Must Know Before Starting

Updated on January 18, 2010

Why Foreclosure Cleaning Is a Top Biz Opp

Cleaning foreclosures is one of the best small business opportunities to hop in – especially in this economic climate. Proof? The "USA Today" article, 'Trash-out' firms clean up in foreclosure biz, states: "Entrepreneur Magazine included a foreclosure cleanup business - Cyprexx Services of Brandon, Fla. - in its 2008 "Hot 100 Fastest Growing Businesses" list."

And not only that, in 2009 cleaning businesses dominated the list of best businesses to start. In fact, four of the Top 10 Fastest Growing franchise opportunities in 2009 were some type of cleaning company. This is according to Entrepreneur.com, a leading online site for entrepreneurs. These companies occupied the number 1, 4, 8 and 10 spots. They are:

#1. Jan-Pro Franchising International: Commercial Cleaning Company;

#4. Stratus Building Solutions: Commercial cleaning;

#8. Bonus Building Care: Commercial cleaning; and

#10. Vanguard Cleaning Systems: Commercial cleaning.

FYI, the No. 11 spot was occupied by yet another cleaning company, Jani-King, which is a commercial cleaning franchise.

Now that you know why cleaning companies are good small businesses to start, following are five things about starting a foreclosure cleaning company you need to know going in.

1. Get Licensed and Insured: Most of your business – at least initially – is going to come from banks and real estate companies. And, they fully expect you to be licensed and insured as a foreclosure cleanup business. If you're not, many won’t be able to hire you because their guidelines require you to be licensed and insure.

How much insurance do you need? Most companies who hire you will require a $1 million liability policy, along with workmen's compensation. Your insurance agent will be able to advise you on exactly what you need, for it depends on several factors (eg, whether or not you have employees, what kind of business you’re classified as, etc.)

2. Get Contact Info from Various Contractors: In a foreclosure cleaning business, you will use the services of many different contractors (eg, electricians, carpenters, painters, handy men, plumbers, etc.).

Hence, before you start, you’ll want to have contact info on hand for at least one or two in each specialty. Even if you have skills in these areas, it's so easy to get busy that you’ll need to outsource work.

Contractor Tip: Subcontract only to licensed contractors. Why? Because your primary contact (eg, a bank) may ask for the electrician's certification to ensure that the wiring was done correctly on a property you’re working on.

3. Expect the Unexpected: In a foreclosure cleanup business, you never know what you're going to get when you enter a property. There could be feces on the floor and walls (this is more common than you may think); dangerous animals left behind (eg, an angry Rotweiller who rushes you as you enter the premises), or angry tenants who haven't departed the premises yet.

So be prepared. As a foreclosure clean out business owner, make it company policy to never enter a property – at least on the first visit – alone. Get in the habit of rattling fences and knocking loudly on doors to see if an animal or person is present before you enter.

4. Quick Turnaround: In foreclosure cleanup, banks and agents want, expect and need a quick response. This is because the longer a property sits empty, the more money they lose. So, they want to get it back in shape to be resold (or rented) again as soon as possible.

Usually, they want you to start as soon as possible after your bid is accepted. So when you’re preparing your estimate, keep this in mind.

Think about the types of contractors you may have to hire to get the job done -- and what their schedules are like. For example, if you can handle the painting but you need someone to do the electrical work and your electrician won’t be available for three days, you will have to build this into your timeline.

Logistics can be a nightmare in the foreclosure cleaning business, exactly because you must factor in the schedules of so many subcontractors.

This is why, where possible, it’s preferable to work with the same ones over and over again. You see, the more work your foreclosure cleanup business gives them, the more likely they are to give your jobs priority over others.

5. Hire a Reliable Receptionist: The person who answers the phone is the first – and in many cases – the last, impression your business makes on a prospective client. They can can mean landing a $10,000 job, or not.

Many think of a receptionist as a lowly paid employee, and they really don’t give much thought to who they hire for this spot.

Think about it this way: when banks and real estate agencies are calling companies for foreclosure clean up jobs, they are usually going through the phone book or surfing the web looking for companies. If a live person doesn’t answer the phone, they're off to the next listing; usually they don't leave a message.

So you want to hire someone who is personable, reliable, knowledgeable and professional. Pay them a decent wage – even giving a percentage of each job if you want to be really generous – for they are the front line of your foreclosure cleanup business.

Learn everything you need about how to start a foreclosure cleanup business. See the NBC news video below for more on this lucrative small business opportunity.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)