How to Start a Foreclosed Property Maintenance Business

by K.A. Francis - Updated September 26, 2017
Price Of Homes Falls Nationwide During Third Quarter

Starting a foreclosed property management business is filling a large niche market. With the number of foreclosure still on the rise, many mortgage companies and banks have properties that need to be cleaned and maintained for potential buyers. Starting such a company, like starting any company, requires some planning and preparation. However, if you are passionate about the endeavor, then a successful business can be launched.

Write a business plan. A business plan is a business operating road map. The business plan includes the business vision (also referred to as a mission statement), short-term and long-term financial projections, marketing and advertising ideas, a list of local competitors and their share of the local market, and the background of all principal owners of the business. A business plan will be required as part of the application process if you decide to seek outside financing.

Apply for all required state and local licenses and permits and choose a business entity status. Permits are required for any business to operate legally. Choose a business entity that matches the number of owners and the protection an owner wants. Two of the most popular entities are limited liability company (LLC) and sole proprietorship.

Join local business organizations and participate. Networking is important for any business, but especially so for a start-up. Join local networking organizations and attend the meetings and mixers. Offer your business card and introduce your business. Networking should be considered free advertising, and the connections made can result in customers.

Contact potential customers and introduce your business. You will have to be careful about who you approach with your services. Contact banks and mortgage companies with vacant houses on their books. Study the real estate ads in your local paper. Some towns list houses that are about to go to sheriff sale. Contact real estate agents who specialize in short sales. They will know which houses are about to go through the foreclosure process.

Tips

  • Make sure you are clear about the types of services you plan to offer. Cleaning the interiors of homes, outside maintenance services such as painting or mowing lawns and caring for flowers and plants, winterizing a home, and cleaning out personal belongings are options.

About the Author

K.A. Francis is a freelance writer with over 20 years experience, and a small business consultant and jewelry designer. She holds a Bachelor of Arts in English and business administration and a Master of Arts in Adult Education. She has written for "The Einkwell," "Windsor Parent," MomsOnline, Writer's Stew, Lighthouse Venture Group and others. Her jewelry design company, KAF Creations, has been in operation since 1998.

Photo Credits

  • Justin Sullivan/Getty Images News/Getty Images
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