How to Start a Foreclosure Cleaning Business

Here is how to start a foreclosure cleaning business as a starter who is interested in this section of the industry.

As homes and properties get foreclosed, occupants move out leaving a mess that needs to be cleared. Major cities like California have experienced a growing number of homeless people.

This only means one thing.

The more the number of homeless people, the higher the number of foreclosed homes. This, in turn, means the need for cleaning businesses.

Now don’t get me wrong here. Foreclosure is a bad situation that should evoke empathy, but there’s a need to fill. This cleaning need is what you are focusing your attention on.

Also, you only arrive after the occupants must have moved out.

Enough of that already! Let’s get to show you how to start a foreclosure cleaning business.

Starting a Foreclosure Cleaning Business

Certain challenges come with foreclosure cleaning.

These aren’t pleasant at all. Nevertheless, there are opportunities to be exploited. So what are these challenges? They include working on or cleaning homes which are in very bad condition. You will come across homes left almost untouched or abandoned.

One of the greatest challenges is that sometimes, banks taking over such homes won’t want to pay the right price for cleanup. Your employees are likely to be exposed to unsanitary conditions too.

In some cases, such homes may have no power or water. Cleaning becomes very challenging as a result.

You might find the most intense unsanitary conditions such as the smell of decaying food, and bugs among other things. All of these are conditions you are likely to experience in this line of work.

If this sickens you, you might want to consider changing to another cleaning business.

Location Counts

Having seen the need to start this business, the next step is to focus your attention on the best location for such a business. Why? Because certain cities have a higher number of foreclosure cases than others.

As we mentioned earlier, California has a growing problem of homelessness which also tells of homes lost due to foreclosure.

Cities such as these will need more foreclosure cleaning services than those with low rates. Hence, you might want to locate your business in such cities.

If you already live in cities with this problem, you have little to worry about as you only need to commence the process of setting up shop.

Write Your Plan

You need a plan for your foreclosure cleaning business. This is a sector where the work conditions can be dismal.

You’ll need your business plan to enable you to strategize all vital aspects necessary for growth.

This should contain a well-worked financial plan, breakdown of equipment and supplies, marketing plans, running and running costs among other things.

For a great plan, a business consultant can be of help. Everything relating to your business operations must be included. That way, you can surmount challenges that are sure to abound.

A cleaning company business plan might form part of the requirement for business registration too.

Name Your Business

Choose an appropriate name for your foreclosure cleaning business.

But what should an appropriate cleaning name look like? It has certain features such as being short and simple, must be easy to remember and easy to pronounce and write.

Additional features include being easy to recall by clients, must reflect business value, and being able to endure even when operations are expanded to other areas.


Banks invest in the real estate sector, so do other investors such as Airbnb hosts.

These are people and organizations you need to market your business to. It is a partnership that is beneficial to all involved. There’s a contact list of banks and Real Estate Owned (REO) management companies.

Find such a list and register your foreclosure cleaning business with each of them.

Why is this necessary? It is necessary because whenever cleaning services are needed, these companies call registered cleaning businesses. This is how they get to find you.

For increased patronage, you only need to register with as many banks and asset management companies.

There are additional ways to increase your business’ visibility. One of them is by marketing your foreclosure cleaning services to REO real estate agents within your area. You may also want to pay them a visit to their local offices.

The closer you are with them the better your chances of being considered for foreclosure cleanup jobs.

Get into industry-related networks that share ideas with anything foreclosure. That way, you can keep abreast of happenings and also apply for available cleaning jobs before information gets out to those outside of the network.

Get Trained

If you are new to this market, then training may be your best bet to come up to speed.

Foreclosure cleaning services, unlike other types, can be more challenging and demanding. Another reason you should get needed training is the competition among cleaning services.

Being disadvantaged in this area is bad news. This is because you won’t be able to keep up.

Find out what makes the market tick and exploit it. Training provides you with all the information on that. There are lots of online resources that will help you with your education.

Cleanout Foreclosures is one such site to find everything you need to know about this business.

Fix Pricing

Setting a price structure for a foreclosure cleaning business is a lot more complicated than other types of cleaning businesses.

First, cleaning jobs aren’t as predictable as those in residential cleaning. Residential cleaning jobs have much more tidy environments than do foreclosure cleaning.

Sometimes you might fix price fixed only to find out that the job condition wasn’t as expected. One such example includes finding out that the foreclosed home has no running water among similar conditions.

This creates a problem for you as you won’t be able to provide the needed service.

The solution lies in visiting such property or properties to assess its state or condition. From your findings, you can fix a price for the cleaning service you provide.

Get a Hang On the Payment Process Before Executing the Job

When called for foreclosure cleaning, you need to understand the terms of the job before signing. This should include payment terms. How is the payment to be made?

Knowing the time frame involved also counts.

Sometimes, what you expect might not be the reality. Remember we said earlier that banks sometimes aren’t willing to pay for what a cleaning service is worth.

  • Open An Account For Your Business

This seems obvious, right? Unfortunately, lots of new entrepreneurs make the mistake of using their accounts for the business. This affects your ability to track expenses. Tax reporting is also shrouded in confusion.

Opening a foreclosure cleaning bank account on the other helps with several things.

They include the improvement of your business’ profile before your clients, tax reporting is done with greater ease, as well as benefits accruing to such accounts.

Such benefits might include free electronic transfers, introductory offers, and free banking which may last a reasonable period.

Register Your Cleaning Business

Foreclosure cleaning is much more complex than say residential cleaning. This is due to its several peculiarities.

Nevertheless, the registration process applies to all types of cleaning businesses. You need to register your business with the appropriate government agency to have legal status.

Federal and state registrations may apply to foreclosure cleaning businesses based on their structure. Under federal registration guidelines, you are required to apply for the Employer Identification Number. The EIN is issued to businesses having employees.

In most cases, this doesn’t apply to a sole proprietorship.

After obtaining the EIN from the federal issuing agency, the IRS, you proceed to have your business registered for state taxes. What these registration guidelines depend on your state’s requirements. In other words, state requirements for tax registrations differ.

Local taxes may apply too.

Registration comes with a permit or license or both. These are obtained after the process must have been completed.


Your foreclosure cleaning business will require the services of employees. Such employees must be skilled in this type of cleaning. However, training can be offered if they lack such type of skills.

Fitness is also an essential part of the job. So, you might want to choose only those who are physically fit.

The services of a lawyer and an accountant are essential to your smooth running. You’ll have to work out your running costs to see if you are prepared for whether you need to apply for funding or investments.


It’s expected that you must have worked every aspect of raising the funds needed to run your business.

Details of this should be contained in your business plan. A critical area covered by financing is cleaning supplies and equipment. A project vehicle will also need to be purchased.

One way to cut down on the cost of a vehicle for your business is to lease or hire one. This is a cheaper alternative and will serve your business needs.


Starting any type of cleaning business isn’t as difficult as it seems on the surface. You only need to give it your all to ensure that it succeeds. Commitment to the implementation of the above steps is a major ingredient to its actualization.

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