The U.S. Department of Housing and Urban Development (HUD) sells its home foreclosures in an "as-is" state. While it won't make major repairs, it may employ services to make them more presentable for sale. Here's how to start a business cleaning HUD properties.
Items you will need
- Business permits and licenses, per your city or state
- Office space and equipment
- Cleaning supplies and equipment
Contact the HUD office and/or HUD real-estate agents about the need for your services. You can save yourself time and money by finding out if you'll have clients before launching your business. It's likely that the office already contracts the service to another company, but you can offer to be a backup service if needed.
Tour HUD homes in your area. Make a note of where they are and what kinds of homes they are. Doing this will show you're thorough and aware of the inventory when it comes time to bid for cleaning business.
Set up your business. You'll need a business license or permit that conforms to the legal requirements of your area. You may want to consider becoming bonded, which provides additional assurances that you'll complete contracted work. Additional tasks include determining your prices and writing contracts and forms.
Make a presentation to local HUD representatives. You can find your local HUD office by finding your state and then clicking "Contact Local Office" at http://portal.hud.gov/portal/page/portal/HUD/states. Then make an appointment to present your business and services.
Contact HUD-approved real estate agents. In addition to contacting the local offices, you can talk directly to the agents HUD uses to help sell its homes. These agents can help you with introductions and understanding the problems of selling homes that are unkempt.
Consider expanding your business to foreclosed homes that are not in the HUD program. Contact bank and mortgage companies to let them know you can increase the value and speed of the sale by cleaning the home. Expand your business by reaching out to real-estate agents about providing cleaning services to their clients and customers before they move into their new home.
Don't forget to get insurance for your business. You'll be entering government-owned homes, and while they are likely to already be in a state of disrepair, you want to protect yourself and your cleaning staff should anyone get injured.