What is An REO Clean-Out Business?
With an unstable economy the REO clean-out businesses are increasing. REO is an abbreviation for Real Estate Owned by banks and mortgage companies. An REO services are the business of cleaning and removing former owners property from the foreclosed property.
What Services Does An REO Clean-Out Offer?
An REO clean-out business can do a variety of tasks. Therefore, real estate brokers want a company that is reliable with a fast turn-around. The three most important services that are required from these companies.
- First, remove any excess trash, junk or debris in the house.
- Secondly, deep clean the inside of the house or commercial building and on the property.
- Third, change the locks of the property.
- Finally, any important-looking paper documents are kept until the end of the job.
Other Services Offered by REO Companies
- lawn maintenance
- minor repairs
- window cleaning
- pressure cleaning applied to the outside of the building and any entrance decks.
Specialty services are not necessary for a REO clean-out businesses. Although, these specialty trades allow the clean-out company to broaden their services. Asset management companies would rather hire a company that can do all necessary services.
Does an REO Clean-Out Provide Insurance and Any Licenses Needed?
Understanding legalities for this type of business services is important. In some states they may require special licenses to clean foreclosed homes. Liability insurance that covers at least $1,000,000 is also required in many states. This covers the possibility any property damaged. Workman’s Compensation also is needed in case any of the employees are injured on the job.