What is An REO Clean-Out Business?
With an unstable economy REO clean-out businesses are increasing. REO is an abbreviation for Real Estate Owned. This is real estate that has been foreclosed by banks and mortgage companies. An REO clean-out is 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. Real estate brokers want a company that is reliable with a fast turn-around. The three most important services that are required from REO clean-out companies.
- Remove any excess trash, junk or debris in the house.
- Deep clean the inside of the house or commercial building and on the property.
- Change the locks of the property.
Any important-looking paper documents are kept until the end of the job, in case the previous homeowner comes back looking for the documents.
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 such as HVAC, electrical, plumbing, and construction 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?
It is important to understand legalities for this type of business services. Some states may require special licenses to clean foreclosed homes. REO clean-out businesses need liability insurance that covers at least $1,000,000. This covers the possibility that anything were to break in the house or if any property damaged occurred. Workman’s Compensation also is needed in case any of the employees injure him or herself.