Skip to Content

How Much Does It Cost to Start a Property Preservation Business?

You will need an average of $40,000 to start a small scale property preservation business. Here is a detailed cost analysis for starting a property preservation business and raising finance.

According to research, starting a property preservation business is not as easy as it sounds, especially as you would have to work to preserve a property regardless of the weather. Also, you would need to not only have certain skills but be able to fulfill the terms of the contract to the last letter.

Most of what consumes the start-up capital is the cost for equipment and tools, as you might be asked to carry out any task in the house, and where you are given the whole task of preserving the house, you might need various different tools or you might have to contract the job to independent handymen, and would inspect the job once it is done to ensure that it was satisfactorily done; this is if you cannot afford to have human resources on stand-by.

We will consider how much it cost to start a property preservation business from scratch including the operating costs.

Estimated Cost Breakdown for Starting a Property Preservation Business

  1. Incorporation Fees would cost $1,500
  2. Business License (Optional depending on state) would cost $500
  3. Insurance policies and Permits would cost $1,000
  4. Acquiring an office facility for a period of one year to store tools and equipment would cost at least $20,000
  5. Cost of equipping the office (Computers. Filing cabinets, printers, safety tools, telephones) would cost $5,000
  6. Cost of acquiring the basic tools needed to carry out light tasks would cost $8,000
  7. Getting a truck would cost at least $8,000
  8. Launch of official website would cost $500
  9. Miscellaneous expenses (signage, business cards, posters and flyers) would cost $1,000

Going by the above report gotten from a detailed research, you will need an average of $40,000 to start a small scale property preservation business in the United States of America.

If you want to start a medium scale property preservation business in the United States, you would need nothing less than $80,000 usd. If you intend starting a large scale property preservation business in the United States of America, then you should be thinking in lines of raising well over $160,000.

Having said that, here are some of the factors that will influence the cost of opening a property preservation company in the United States of America;

Factors That Determine the Cost of Opening a Property Preservation Business

  1. The Type of Property Preservation Company

A major factor that will determine the overall cost of opening a property preservation company in the United States of America is the type of property preservation company in question. There are three broad forms of property: private property, public property, and collective property (also called cooperative property).

In a nutshell, property preservation companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners. In essence, a property preservation company that is strictly into handling private properties may not be as big and demanding as a property preservation company that is into public/commercial properties and collective properties.

  1. The Choice of Location

Another major factor that will determine the cost of opening a property preservation company in the United States of America is the location. In business, location is key part of what determines the success of the business.

There are business consultants cum realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability within the shortest time frame. So, you will now agree that location can influence the cost of starting a property preservation company business.

For example, renting or leasing a property preservation company office facility in a location that is off the city center or off real estate hub will be less expensive when compared to renting or leasing an office facility in a business district; a location along a major road with high vehicular and human traffic, a location in a metropolitan city with the right demographic composition of landlords and tenants and of course people who have the capacity to pay for your services.

  1. The Required Licenses and Permits

In the United States of America, you cannot open a property preservation company without first applying for the mandatory license and permits. You would need real estate practitioner license, building license, zonal permits, and signage permits amongst others.

These licenses and permits cost money and it will influence the overall cost of opening a property preservation company in the United States of America. You also have to pass through several inspections before you can be issued your licenses and permits and this will also cost you money.

In order to get the overall cost of licensing and permits associated with opening a new property preservation company in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.

  1. The Type of Facility

The type of facility you want to run your property preservation company from is also a major factor that will determine the overall cost of opening a property preservation company in the United States of America. You have the options of renting, leasing or constructing your own office facility from the scratch.

With renting and leasing a facility, you might just have to spend extra to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your office facility from the scratch.

It means that you will buy the land or a property, construct and equip the office facility to fit into what you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility. This indeed will greatly influence the overall cost of opening your property preservation company.

  1. Additional Service Offerings

Another key factor that will determine the cost of opening and operating a property preservation company in the United States of America is the additional service offerings of the property preservation company. The fact that there are different types of property preservation companies means that these property preservation companies are designed to offer different services.

A standard property preservation company that offers robust services that covers areas such as collecting rent, managing facilities maintenance services, managing security, managing trash and recycling collection, property accounting, legally representing property owners,

Finding and screening tenancy applicants, coordinating repair contractors, residential property management, nonresidential property management, land management, real estate brokerage and even construction will be more expensive to start when compared to the cost of starting a property preservation company that is just into residential property management and limited services.

  1. The Number of Offices they Want to Start With

Another very important factor that determines the cost of opening a property preservation company in the United States of America is the number of offices they intend starting with. There are new businesses that start big with the aim of announcing their presence with a bang hence they may want to open two or more offices in different locations at the same time or within a short interval.

Aside from the cost of renting or leasing the office facilities in such situation, it will also cost you more to furnish and equip the offices and the more the number of offices/locations, the more the money that you are expected to spend.

  1. The Cost of Hiring and Paying a Business Consultant and Attorney

If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, comprehensive SWOT analysis, and other advisory services.

Also, an attorney will help you with registering the business, drafting contract documents and offer you all the legal expertise that will help you start the business on the right foundation. You will agree that these services will cost you money and it will indeed influence the overall cost of opening a property preservation company in the United States of America.

  1. The Cost for Branding, Promotion and Marketing of the Property Preservation Company

The cost for branding, promoting and marketing the property preservation company business is yet another key factor that will determine the overall cost of opening a property preservation company in the United States of America. Trust me, if you need massive results as it relates to winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing.

As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the training and recruiting industry in your city.

So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your property preservation company.

  1. The Cost for Furnishing and Equipping the Property Preservation Company Office

Another factor that will determine the cost of opening a property preservation company is the cost of furnishing and equipping the facility. You will quite agree that aside from the basic facilities that are expected to be found in an office, an investor that wants to open a property preservation company may decide to furnish the office to look unique.

Before you can open a property preservation company, you should budget and buy training chairs and tables, projectors, flat screen TVs, sound system, DVD players, Satellite dish and decoder, office furniture (table, stools and sofas), telephones, filing cabinets), office equipment (cash register, security and fire alarm and protection gadgets, CCTV, ventilation, signage), fire and fancy lightening amongst others. All these will cost money and it will influence the overall cost of opening your company.

  1. The Cost for Insurance

The cost for paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a property preservation company in the United States of America. In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.

Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your own property preservation company business.

  1. The Cost for Registering the Business

The cost for registering the property preservation company business is yet another cost that will influence the overall cost of opening a property preservation company in the United States of America. As a matter of fact, you cannot legally operate any business in the United States or most countries of the world.

Although, the cost of registering a business is affordable, it will no doubt add to the overall cost of opening a property preservation company in the United States of America.

  1. Cost of Recruiting and Training Your Staff

The fact that you are opening your property preservation company as a new business means that you are expected to recruit and train your staff to conform to the picture of the kind of property preservation company you want to operate. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers that will help you bring your new hires up to speed.

Financing Your Property Preservation Business

Financing for business is very important, it is what sustains a business and ensures that it stays alive for a long period of time. Most banks start to pay for even simple jobs from two months, and so finance is necessary as it will help with cash flow and also with bankrolling jobs from the banks whilst you await your payment.

This show how important having finance is if you intend to start your own property preservation business in the United States.

One quick way of getting finance especially for those who have a bad credit rating or not so rich family and friends, is to approach investors. However, investors usually would want to know what your plans are, which is why it is necessary for you to have a business plan, which will at a first glance intimate investors on why their money would be safe with you.

In this time and age, no investor will part with their cash if they cannot see the seriousness of how you are likely to treat your business. So, if you have decided to go into the property preservation business, the next thing is to get your business plan ready.

The options available when it comes to financing your property preservation business start-up are:

  • Getting money from credit cards
  • Raising money from family and friends
  • Getting money from factoring companies
  • Raising money from personal savings
  • Getting money from investors

In Conclusion,

These are some of the factors that will determine the overall cost of opening a property preservation company business in the United States of America.

Please note that there are other factors not listed above that will influence the overall cost of opening your property preservation company business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide.