Are you planning to build your own property preservation business but don’t have any idea where to start? Do you want to know what the possibilities of business growth in the industry are? Are you in need of ideas about an effective management that will sustain this business in the long run?
Here is the complete guide for every business starters in the property preservation industry.
What Is Property Preservation Business All About
Property preservation companies are companies that offer services like maintenance and cleaning of foreclosed properties now owned by banks, lenders and other financial institutions. Since the law does not permit banks to have involvement with any business related to property management, they need the help of property maintenance companies to carry out the responsibility.
As the economy drops, there is a significant increase in the number of foreclosed properties. Because of this, more and more property preservation specialists gather and offer their services to banks, lenders, and other financial institutions.
This kind of business needs critical decisions as this sector serves urgent demands. Services done by specialists are crucial to meet the client’s requirements, and immediate needs for acceptance of contract offers because the industry is full of fierce competitions. It is imperative that every transaction made with banks should include accurate decisions or else there is no likelihood of second chances.
The property preservation industry is more likely to change from time to time because it also depends on the housing sector.
However, according to research, there was a 23% increase in the number of recorded foreclosures in the United States since 2008. It means that there is still a high rate of distressed properties that will make property preservation businesses indispensable. The business starters who are willing to venture in this industry have real chances of growing in the market.
Areas of Specialization for Every Property Preservation
The property preservation industry offers services that are usually uniform in nature, but there are also some businesses that have additional related services. Here are few of the areas of specialization in the property preservation.
- Managing Facilities – Facility management focuses on the practical and efficient performance of service that will meet the needs of the client.
- Maintenance Service – This service provides the properties and products to be operating in the best condition.
- Property Accounting – Accounting provides the explanation for the properties in monetary terms.
- Repair and Renovation – This specialty gives the required remodelling of properties, its repairs, and possible restorations.
- Security Management – Security Management identifies the client’s information assets, growth, documentation, protection of the property through policies and procedures implementation.
More areas involved in property preservation are the collection of rent, managing trash and recycling, legal representation of assets owners, repair contractors coordination, and screening tenancy applicants.
For small property preservation businesses, they may opt to have only a few of the mentioned services, while medium to large business owners usually offers more of the services mentioned above that effectively bring in more clients.
Preparing for a Business Plan
Every business owner in any industry should have a business plan that will be the primary guide to its future goals. In this case, the roadmap that you should write is the one that will help and assist you towards building your own property preservation business.
In structuring and organizing your ideas into forming the plan, there will be encounters of complexities and the need for attention to details. You may want some help and employ a professional business plan writer or avail services of a business plan consultant.
However, in case you do not have the budget, there are available business plan templates all around the internet which you can later download after having first identified its authenticity and then it will help you to start creating the business plan finally.
Your business plan should present your clients like banks, lenders, and other financial institutions about why they should invest in your property preservation company. In introducing the business objectives, it must show simplicity and clarity with facts, impartiality, and realistic goals.
Property Preservation Business Location
The business location of property preservation can be anywhere, as long as it can hold the necessary tools and supplies and keep the required files. However, there are things to consider before finally deciding the best area where your business is suited to stand.
Choose an area that is surrounded by foreclosed houses and properties. Choosing such locations can bring more projects for your business without having to find them somewhere else.
You might be planning to start the business in your home. The truth is, you can carry out this business even in your garage as long as it can keep the required files and gather the necessary equipment for your preservation. This way, you do not have to allocate money for building rental and be able to work comfortably at home.
However, if you have the financial capacity to rent facilities, you can do it whether you plan to build a small, medium or large scale property preservation company.
Whether you are still starting in the industry or you already own a property preservation company, marketing strategies are important keys to every business that will help increase its growth, boost sales for overall development and sustain it in the long run.
With an effective marketing strategy, you can harness a wider base of investors and make them your regular clients in the long term.
Careful planning is needed to test and evaluate every possible marketing technique that is suited to help your property preservation business reach its goals. It is imperative that your marketing strategies will make your company stand out and let the banks, lenders, and other financial institutions that are your leading clients notice your business.
It is better to associate your business with other large scale property preservation companies who have already established a reputation in the industry. Preparation is a must because there will be necessary bidding for works. Your established connections with financial institutions, lenders, and banks will be a huge edge for you in bids for jobs.
Here are a few marketing strategies that will help you in expanding your property preservation business in the long run.
- Send mails or emails to different real estate owned (REO) representatives with the corresponding services and needed requirements your business offers. In this way, you can directly market your business to your target clients.
- Make use of the digital age and create a website for your business. Keep it simple, clean, and informative to have a positive impact on your clients. Include your business contact, location, and the list of services and support your property preservation business has to offer. Place your advertisements on your website.This way, you can create a presence on the internet and reach a wider customer base around the world. You can promote your business site using the widely-used social media platforms like Facebook, Twitter, and Instagram.
- Be willing to learn and engage in seminars and conferences that discuss business strategies and discover the things that apply to your property preservation business. In this way, you can create a system of connections for business purposes.The more knowledge you have about how the business works, the abler you will be in coping up with the changes in the industry as the time goes on.
- Be prepared to accept contracts from your clients on the spot. Your business should guarantee that there will be no rejection of jobs after you got contracted.
Since no company can stand with one man alone, you will need people that can help you in running the business. You may employ people for executive positions like a personal secretary, an accountant, and a security guard.
For the repairs and fixings, the number of individuals that will execute the business depends on the kind of contract you will get. With this, you will have to transact with independent contractors and hire some workers that will carry out the construction.
Required Tools and Equipment
You do not have to worry about the finding the tools to be completely unfamiliar, costly, and too technical for most of the necessary equipment for property preservation business are the primary tools that are usually at home, cheaply bought in the neighborhood hardware shops or online.
Here are the essential tools and equipment that you need to have as you start your property preservation business.
A generator provides electricity especially in most cases that there is no power in the foreclosed house or property. Portable heaters are useful for supplemental heating in cases that central heating systems are too expensive and complicated to install.
Hammer, shovel, ax, flashlight or torchlight, camera, and safety gears like a hard hat and safety gloves are also the necessary tools to start your preservation business.
According to a shopping place for foreclosures online called RealtyTrac, there were more than three million foreclosures in the US as of 2010 which indicates an increase of 23% since 2008. It means that you have best chances for marketing your business.
With the advancing technologies that accompany increasing demands, coping up with the changes in regulations and implementations of the best business practices, the property preservation business offers a diverse industry that proves not everyone can sustain its needs.
However, the number of distressed houses and other properties continue to increase, and that makes the industry continue to thrive and be more competitive despite all the challenges.
Thank you Patrick Panuncillon, founder and CEO of LinkVista Digital Incorporated.
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