A property preservation business is a company that provides a range of services to maintain and protect properties that are in the process of foreclosure, vacant, or abandoned. These properties may be residential or commercial and include homes, apartment buildings, retail spaces, and other types of real estate.
The services provided by a property preservation company may include securing the property to prevent unauthorized access, removing debris, repairing or replacing damaged fixtures or appliances, cleaning the interior and exterior of the property, and maintaining the landscaping.
Please note that it is common for property preservation businesses to be contracted by banks, mortgage companies, or government agencies to manage and maintain foreclosed or abandoned properties. They may also work with property owners who are unable to maintain their properties due to financial or other reasons.
The property preservation business belongs to the property management industry, and available data shows that the global property management market is projected to grow from $19.33 billion in 2022 to $37.25 billion by 2029, at a CAGR of 9.8 percent in the forecast period.
The property management market size in the United States reached $101.3 billion in 2021. The market size of the Property Management industry is $114.9bn.
Steps on How to Start a Property Preservation Business
Conduct Market Research
To conduct market research for a property preservation business, it is important to identify the target market and understand its needs and preferences. This can be done through surveys, focus groups, and analyzing industry trends.
It is also important to research competitors and their offerings, as well as pricing strategies, and identify the types of customers you want to serve, such as banks, mortgage companies, and loan servicers, as well as government agencies, including federal, state, and local organizations.
Social media can be a valuable tool for gathering insights on consumer behavior and preferences. Once the research is conducted and concluded, it can be used to develop marketing strategies and tailor your services to the target market.
a. Who is the Target Market for Property Preservation Business?
The target market for a property preservation business typically includes financial institutions, such as banks, mortgage companies, and loan servicers, as well as government agencies, including federal, state, and local organizations that manage and maintain foreclosed, vacant, or abandoned properties.
b. Is Property Preservation Business a Profitable Business?
Yes, the property preservation business is a profitable business. Available data shows that the global property management market that the property preservation business is a part of is projected to grow from $19.33 billion in 2022 to $37.25 billion by 2029, at a CAGR of 9.8 percent in the forecast period.
c. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to property preservation business simply because property preservation business is a niche idea in the property management industry.
d. Who are the Major Competitors?
- MCS Solutions
- Safeguard Properties
- Field Asset Services
- Cyprexx Services
- Five Brothers
- National Field Representatives
- AIM Your Way
- Guardian Asset Management
- M&M Mortgage Services
- FirstService Residential
- Cityside Management
- Diverse Solutions Group
- National Real Estate Solutions
- US Best Repair Service
- Property Masters
- PK Management
- Field Service Solutions
- Spectrum Field Services.
e. Are There County or State Regulations or Zoning Laws for Property Preservation Businesses?
Regulations and zoning laws for property preservation businesses may vary by county or state in the United States. These regulations may include licensing requirements, building codes, zoning laws, and environmental regulations.
Licensing requirements may vary by state and may require a property preservation business to obtain a license to operate legally. Building codes may also apply to property preservation businesses, particularly in terms of safety standards for rental properties.
Zoning laws may determine where property preservation businesses can operate, as some areas may be zoned for residential or commercial use only. Environmental regulations may also be a concern for property preservation businesses, particularly those that handle hazardous materials such as cleaning chemicals or paint.
f. Is There a Franchise for Property Preservation Business?
No, there are no franchise opportunities for the property preservation business.
g. What Do You Need to Start a Property Preservation Business?
- Business plan
- Legal structure
- Licenses and permits
- Standard office facility in a suitable location
- Equipment and supplies
- Marketing and advertising
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a property preservation business are;
Creative Property Preservation Business Name ideas
- Fine Touch® Property Preservation Company, Inc.
- Sum Total® Property Preservation Company, Inc.
- King’s Envoy® Property Preservation Company, Inc.
- Tony Martins® Property Preservation Company, LLC
- Profitable Ventures® Property Preservation Company, Inc
- Golden Ceiling™ Property Preservation Company, LLC
- Silver Pillar® Property Preservation Company, Inc.
- Irvin Murdock® Property Preservation Company, LLC
- Lukas Radebe® Property Preservation Company, Inc.
- Peter Geroge© Property Preservation Company, LLC
- Chris Parker® Property Preservation Company, Inc.
- Orlando Columbus® Property Preservation Company, Inc.
- Black Lites™ Property Preservation Company, Inc
- Bona Nelson® Property Preservation Company, LLC
- Erick Camily® Property Preservation Company, Inc.
- Southgate Group® Property Preservation Company, Inc.
- Northlake Group™ Property Preservation Company, LLC
- Nixen Thomas© Property Preservation Company, LL
- Davids Astrophel® Property Preservation Company, Inc.
- Gaius Philips© Property Preservation Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Property Preservation Business?
The best type of business structure for a property preservation business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept. However, we usually recommend a limited liability company (LLC).
An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity. This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Property Preservation Business?
- Business License
- Building permit
- Contractor’s License
- Occupational License
- Environmental Permits
- Fire safety license and permit
- sales tax permit
- Professional license
- Zonal permit.
d. What Type of Certification is Needed to Open a Property Preservation Business?
- Certified Property Preservation Specialist (CPPS)
- Certified Property Management Specialist (CPMS)
- Certified Home Inspector (CHI)
- Certified Mold Remediation Specialist (CMRS)
- Certified Environmental Inspector (CEI)
- Certified Property Manager (CPM).
e. What Documents are Needed to Open a Property Preservation Business?
- Business plan
- Business License
- Employer Identification Number (EIN)
- State-specific licenses and permits
- Building permit
- Contractor’s License
- Occupational License
- Environmental Permits
- Fire safety license and permit
- Resale license or sales tax permit
- Professional license and certifications
- Zonal permit
- Insurance policies
f. Do You Need a Trademark, Copyright, or Patent?
In general, while obtaining a trademark, copyright, or patent is not required for a property preservation business, doing so can provide legal protection for the business’s intellectual property and can help prevent others from using or copying its unique ideas or brand identity.
If a property preservation business is unsure whether it would benefit from intellectual property protection, you may want to consult with a lawyer who specializes in intellectual property law.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Property Preservation Business?
The total cost to start a property preservation business can range from $50,0000 to over $500,000 depending on the size and scope of the operation. It is important to carefully consider all the startup costs and develop a comprehensive business plan to ensure that the business has enough capital to cover expenses and turn a profit.
b. What are the Costs Involved in Starting a Property Preservation Business?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $3,800.
- Marketing, Branding, and Promotions – $1,200.
- Business Consultant Fee – $4,500.
- Insurance – $3,200.
- Rent/Lease – $65,000
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $45,000
- Store Equipment (cash register, security, ventilation, signage) – $2,350
- Equipment, Furniture, and supplies – $35,000
- Working Capital: $450,000
- Website: $1,200
- Opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Property Preservation Business?
- The size of the property preservation business and the working capital
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing of the property preservation business
- The cost of furnishing and equipping the facility
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the grand opening of the property preservation business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
The decision to build a new facility for your property preservation business is entirely up to you because you can run this business from a leased or rented office.
e. What are the Ongoing Expenses of a Property Preservation Business?
- Labor costs (wages or salaries of employees or contractors).
- Equipment and supplies
- Transportation costs (fuel, maintenance, and repairs for vehicles used to transport equipment and supplies to job sites).
- Ongoing expenses related to marketing and advertising include website maintenance, social media advertising, and other promotional materials.
- Insurance (liability insurance and workers’ compensation insurance)
- Legal and professional fees
- Rent and utilities
- Taxes (income taxes, property taxes, and other taxes).
f. What is the Average Salary of your Staff?
- General Manager – $52,000 per year
- Project Manager – $47,000 per year
- Facilities Manager – $45,000 per year
- Marketing and Sales Staff – $37,000 per year
- Administrative Assistant – $36,000 per year
- Customer Service Representative – $33,000 per year
g. How Do You Get Funding to Start a Property Preservation Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
a. Executive Summary
Southgate Group® Property Preservation Company, Inc. is a Marietta, Georgia-based property preservation company that specializes in maintaining and protecting vacant and foreclosed properties.
Our team of experts provides a range of services, including property inspections, winterization, debris removal, lawn care, and repair and maintenance work. We work with banks, mortgage companies, and other clients to ensure that their properties are maintained to the highest standards.
Our company has a proven track record of success in the property preservation industry. We have a team of experienced professionals who are dedicated to providing exceptional service and meeting the unique needs of each client.
We use the latest technology and tools to ensure that our work is efficient and effective. In addition, we are committed to sustainability and environmentally-friendly practices. We use eco-friendly products and equipment whenever possible, and we work to minimize our impact on the environment.
At Southgate Group® Property Preservation Company, Inc., we are focused on building long-term relationships with our clients. We believe in transparency, communication, and accountability, and we strive to exceed our client’s expectations in every aspect of our work.
b. Products and Service
- Property Inspections
- Debris Removal
- Lawn Care
- Repair and Maintenance
- Cleaning Services
- Security Services
- Boarding and Lock Changes
- Environmental Remediation
- Hazardous Waste Removal.
c. Mission Statement
At Southgate Group® Property Preservation Company, Inc., our mission is to protect and maintain vacant and foreclosed properties to ensure that they are safe, secure, and habitable for future occupants.
We are committed to providing exceptional service to our clients and building strong relationships with our partners and stakeholders. Our goal is to be a leader in the property preservation industry and make a positive impact in the communities we serve.
Our vision at Southgate Group® Property Preservation Company, Inc is to be the premier property preservation company in the industry, known for our commitment to quality, sustainability, and innovation. We strive to be the go-to company for clients who need reliable and trustworthy property preservation services and to be a trusted partner for other professionals in the industry.
d. Goals and Objectives
The goals and objectives of a property preservation business are to prevent further deterioration of a property and to protect its value by performing a variety of tasks such as securing the property to prevent unauthorized access, removing debris, repairing or replacing damaged fixtures or appliances, cleaning the interior and exterior of the property, and maintaining the landscaping.
e. Organizational Structure
- General Manager
- Project Manager
- Facilities Manager
- Marketing and Sales Staff
- Administrative Assistant
- Customer Service Representative
a. SWOT Analysis
- Experienced team of professionals with expertise in property preservation and maintenance.
- Proven track record of success in the industry with a reputation for delivering high-quality services.
- Use of the latest technology and tools to improve efficiency and effectiveness.
- Commitment to sustainability and environmentally-friendly practices.
- Strong relationships with clients and partners in the industry.
- Limited geographic coverage, may restrict growth opportunities.
- Dependence on a small number of clients for a significant portion of revenue.
- Limited brand awareness and marketing presence, which may impact the ability to attract new clients.
- Expansion into new geographic markets to increase revenue and market share.
- Diversification of services to offer a wider range of property preservation and maintenance solutions.
- Increased demand for property preservation services due to rising numbers of foreclosed properties.
- Partnerships with other companies in the real estate industry to expand services and reach new clients.
- Intense competition in the property preservation industry, which may lead to price pressure and reduced profitability.
- Economic downturns or housing market fluctuations could impact demand for property preservation services.
- Changes in regulations or legal requirements related to property preservation, may increase compliance costs and reduce profitability.
- Changes in technology or industry standards require significant investments in equipment and training to keep up with them.
b. How Do Property Preservation Businesses Make Money?
Property preservation businesses make money by providing services to clients who own or manage vacant or foreclosed properties. These services may include inspections, repairs, cleaning, security, lawn care, winterization, and other maintenance and preservation services. Clients typically pay for these services on a per-job or per-property basis.
c. Payment Options
- Credit or Debit Card
- Electronic Payment Systems such as PayPal or Venmo
- Bank Transfers.
d. Sales & Advertising Strategies
- Building relationships with property owners, managers, and other real estate professionals through networking events, referrals, and online communities
- Creating a website and social media presence to showcase the business’s services, portfolio, and customer reviews. Paid advertising on Google, Facebook, or other platforms can also help to reach a wider audience.
- Regularly sending newsletters, promotions, and updates to existing clients and prospects to keep the business top-of-mind and encourage repeat business.
- Sending targeted mailers or postcards to property owners and managers to introduce the business and generate interest.
- Offering incentives or discounts for referrals from existing clients and encouraging word-of-mouth marketing and building a loyal customer base.
- Partnering with banks, and mortgage companies to leverage opportunities for cross-promotion and referrals.
- Attending industry trade shows or exhibitions to showcase the business’s services and stay up-to-date on industry trends and best practices.
a. How Much Should You Charge for Your Product/Service?
The fees charged by property preservation companies in the United States can vary widely depending on a number of factors, such as the location of the property, the type of services needed, and the size and condition of the property. For example, lawn maintenance services may cost between $50 and $200 per visit, while winterization services may cost between $150 and $500 per property.
Please note that other services, such as inspections, repairs, and cleaning, may be priced on a per-job or per-hour basis, with rates varying depending on the complexity and scope of the work required.
b. How Much Profit Do Property Preservation Business Owners Make a Year?
According to industry sources, the average profit margin for property preservation businesses ranges from 10% to 30%, with some larger and more established companies reporting even higher profit margins. This means that, for example, a property preservation business with $1 million in revenue could expect to make a profit of anywhere from $100,000 to $300,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the property preservation business
- The service offerings of the property preservation business
- The location of the property preservation business
- The management style of the property preservation business
- The business approach of the property preservation business
- The advertising and marketing strategies adopted by the property preservation business.
- The number of years the property preservation business has been in business
d. What is the Profit Margin of a Property Preservation Business?
Generally speaking, the profit margin for a property preservation business is between 10 percent and 30 percent. This means that for every dollar earned, the business will keep around 10 to 30 cents as profit after all expenses have been paid.
e. What is the Sales Forecast?
Below is the sales forecast for a property preservation business. It is based on the location of the business and other factors as it relates to such startups in the United States.
- First Fiscal Year (FY1): $360,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $540,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Property Preservation Business?
- The demography of the location
- The demand for property preservation services in the location
- The purchasing power of businesses and residents in and around the location
- Accessibility of the location
- The number of property preservation companies and related businesses in and around the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al
b. What State and City is Best to Open a Property Preservation Business?
- Plano, Texas
- Cleveland, Ohio
- Brandon, Florida
- Warren, Michigan
- Claremont, New Hampshire
- Phoenix, Arizona
- Tallahassee, Florida
- Irvine, California
- Boston, Massachusetts
- Newport Beach, California
- Dallas, Texas
- Marietta, Georgia
- Richmond Heights, Ohio
- Schaumburg, Illinois.
c. What Equipment is Needed to Operate a Property Preservation Business?
- Cleaning supplies such as brooms, mops, vacuums, dustpans, cleaning chemicals, and trash bags
- Painting supplies such as paintbrushes, rollers, trays, painter’s tape, and drop cloths
- Basic tools such as screwdrivers, hammers, wrenches, pliers, and power drills are required for minor repairs and maintenance.
- Personal protective equipment such as gloves, safety glasses, and dust masks
- Moving supplies such as dollies, hand trucks, and moving blankets may be required to transport furniture and other items.
- Technology such as computers, mobile devices, and software programs
- Van or truck
If you are looking to start a property preservation center, then you should make plans to hire employees. This is so because it requires a team to effectively run a property preservation business. But on the other hand, you may want to run the business alone and work directly with contractors that deliver any required services.
Launch the Business Proper
Organizing an opening party for a new property preservation business can be a good way to introduce your business to the community and create awareness about your services. However, whether or not to have an opening party is ultimately a decision that depends on you.
If you want to go ahead to organize a proper launch for your property preservation business, then you must make sure to invite potential clients, key stakeholders in the real estate industry, and other members of the community who may be interested in your services.
a. What Makes a Property Preservation Business Successful?
- Being consistently reliable
- Excellent customer service
- Excellent facilities
- Attention to details
- Efficient operations
- Compliance with regulations
- Hiring skilled and knowledgeable employees and providing ongoing training that will ensure you deliver high-quality services.
b. What Happens During a Typical Day at a Property Preservation Business?
- The day may begin with scheduling appointments, coordinating with contractors and vendors, and planning the work to be done for the day.
- Inspecting vacant or foreclosed properties to assess the condition and identify any maintenance or repair needs.
- Conducting a range of maintenance and repair tasks, such as cleaning, lawn care, winterization, plumbing repairs, electrical repairs, and more.
- Securing vacant properties to prevent unauthorized entry or damage, such as installing locks, boarding up windows, or setting up alarms.
- Communicating with clients to provide updates on the status of the work being done, answer questions, and resolve any issues or concerns.
- Keeping detailed records of work completed, materials used, expenses incurred, and preparing reports for clients or management as needed.
- Developing marketing materials, reaching out to potential clients, and building relationships with existing clients to promote the business and grow revenue.
- The office is closed for the day.
c. What Skills and Experience Do You Need to Build a Property Preservation Business?
- Excellent Project Management Skills
- Customer Service Skills
- Business Management Skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Organizational skills
- Work experience in the property preservation cum property management industry
- Experience in managing people
- Experience in handling building and cleaning materials
- Experience in business administration.