Are you planning to build your own property preservation business but don’t have any idea where to start? Check out complete guide to become a Property Preservation Specialist.
How Property preservation Works
Property preservation companies mainly provide miscellaneous cleaning and maintenance services on behalf of lenders and financial institutions for foreclosed properties. Given that banks are not characteristically in the property management business, they outsource various related responsibilities to various property preservation companies. Due to the number of foreclosed properties on the market, more and more property preservation companies are filling the demand by banks for these services.
Becoming a Property Preservation Specialist:
1. Set up your business frame. Before anything, formally establish the property preservation company. It may not necessary requirement depending on your area, but it is important for professionalism and business opportunities. In addition, it is important; in order to be taken seriously by large banks. The main rule is that property preservation companies should have a formal structure. Whether it is an LLC or a corporation, at a minimum it should carry basic liability insurance policies and be licensed to operate in the geographic area it is targeting. These are very crucial factors for the success of your business.
2. Launch a website. Establish a professional presence on the Internet. A key component of marketing a new property preservation company is developing a professional website. A quick Internet search will reveal numerous competitors in the marketplace. Thus, it is important to differentiate yourself from the field by highlighting competitive advantages. These include:
⦁ Existing business relationships
⦁ Depth of professional experience
⦁ Geographic location
⦁ Specialized property preservation capabilities
3. Spread the word. Apply to the REO department of major banks. To be hired as a property preservation company, management should prepare business summaries to be submitted to the REO (real estate owned) department of major banks to solicit requests for proposal (RFPs). Each bank and lender has different procurement channels, but in order to be retained on contract, the decision maker first must notice you. Contact banks to assess properties that have been or facing foreclosure. Report on condition or maintenance requirements, and other important factors.
4. Seal deals. Act on a preservation contract immediately. If a bank contacts you in response to a proposal or finds your property preservation company website, you should be able to accept a contract offer on the spot. This means having the assets in place and human resources requirements lined up in advance. With the amount of competition in the market for property preservation companies, if you are unable to meet a bank’s immediate needs, you may not get a second chance.
Services done by property preservation 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.
Areas of Specialization for Every Property Preservation Specialist:
The Property Preservation Specialist is always responsible for reviewing reports produced by preservation vendor and identifying any and all issues which will prevent deterioration of asset. They will be responsible for filing hazard claims on damaged properties, reviewing work orders submitted by field vendors, coordinating preservation efforts, and also adhering to all local ordinances by registering properties at the appointed time.