To ensure you have a clearer picture, note that an average foreclosure cleaning business works on 5 – 25 houses a week, even though this will vary depending on the area.
However, the pay on average is from $500 to around $2500 per property, although it can exceed $10,000 on very large jobs. While the income for these businesses can be quite interesting, don’t neglect the fact that it can be a messy job. Depending on how long the house has been empty, you might have to carry out a very deep cleaning.
Foreclosure cleaning is the process of cleaning up a home that has been foreclosed on. Most often, this will encompass anything from trash removal to power washing the exterior of the home. Foreclosure cleaning businesses are known to bill clients by the hour or by the job and it can be quite profitable as a small business.
Just as was noted above, the average cost of a foreclosure cleanout is around $500. Your jobs might be periodic but you can offer additional services like junk removal or even residential cleaning in between foreclosure work.
If for instance, the average job is around $250, note that your profit margin after labor and supplies would have to be about 50%. Within your first few years in the business, it is possible to carry out seven jobs per week, and this can come to $91,000 in annual revenue.
This also translates to over $45,000 in profit if we stick to the industry-reported 50% margin. However, once your business starts to grow, it is possible to carry out 25 jobs per week. While this stage will necessitate a bigger team, reducing your profit margin to about 30%, you will more or less make around $325,000 in annual revenue and nearly $98,000 in profit.
Factors That Determine How Much You Make Cleaning Out Foreclosed Homes
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Same as with most other businesses known to man, the location of your business or where you offer your services will have a massive impact on your income.
Note that offering your services to clients in high-value real estate markets or densely populated areas will most definitely bring in better income and opportunities especially when compared to offering your cleaning services in rural locations.
Property Size and Condition
This is a very important factor to take into account when evaluating how much you can make from cleaning foreclosed homes.
You have to understand that the size of the home you are to clean coupled with its condition will factor in when determining how much you charge clients and ultimately how much you make. Truth be told, big houses require more time, effort, and resources, and this entails higher charges for such properties.
Scope of Work
The level or scope of work being carried out will also determine how much you make from those services. Just as it was noted above, although the income for these businesses can be quite interesting, don’t neglect the fact that it can be messy and overly disgusting.
Depending on how long the house has been empty, you might have to carry out a very deep cleaning. If you offer extra services like disposing of debris, repairing damages, or landscaping, you will most definitely charge more.
This is another factor to consider at the very beginning because it will have a massive impact on your eventual income. You have to take into consideration the number of competitors or similar businesses within your surroundings because it will impact your pricing.
If there are numerous cleaning companies or contractors providing identical services, you might have to adjust your rates to draw in clients.
Your Experience and Expertise
You have to understand that experience still remains the best form of learning, and the level of experience you have in carrying out these services will have an impact on how much you bill clients. Keep in mind that individuals with more experience will be able to do the work faster and better and this entails that they will make more money.
Time and Efficiency
Just as was noted above, an average foreclosure cleaning business works on 5-25 houses a week, even though this will vary depending on the area. Note that this simply entails that the amount of time it takes you to do a particular job before moving to the next one will determine the number of homes you can clean in a day or week.
As such, the more efficient you are when it comes to rendering these services without compromising quality, the more income you can make.
Networking and Relationships
You can’t in any way undermine the importance of networking and relationships especially in this line of business. Keep in mind that establishing and sustaining good relationships with real estate agents, property management companies, and foreclosure companies will most definitely mean a steady flow of work and indeed better income.
As such, consider reaching out to your local real estate agents and see if they have any clients who are in the process of foreclosing on their homes.