Becoming a real estate investor is a dream for many folks. Recently, it’s become an even more attractive option for building wealth.
In 2020, CNBC reported that home-flipping profits reached a 20-year high. If you’ve wanted to explore real estate investing, flipping houses may be the way to go. However, the same can be said for rental real estate investing. With rents on the rise and given the fact that more Americans are now renting than at any time during the past 50 years, owning rental properties may hold the key to your financial success.
If you’ve already learned the basics of how to get started in real estate investing, you might think the first step is to pick the right type of property. First, however, real estate investors should consider key members of their real estate investing (REI) team before entering into a real estate contract.
Your REI team should include various professionals with the experience to support your long-term success, including a plumber, real estate agents, lenders, accountants, lawyers, and property managers. You’ll also want to add a cleaning service to the list—one you can depend on for your post-renovation needs.
Whether you focus on rental properties or fix-and-flips, here’s why you need to have a cleaning company on retainer for better success as a property investor!
Why Do Real Estate Investors Need a Cleaning Crew?
Long-term rental properties and fix-and-flip opportunities won’t serve you well without smart renovations or rehabs to improve property values, compete in the rental market, or sell homes at a profit.
For example, an investor might need to remodel a rental property between long-term tenants to keep a property competitive and set ideal rental rates. Additionally, fix-and-flips often require substantial work between sales.
Once previous tenants have moved out, and renovations have been completed, you’ll be left with a mess to clean up. While you could handle that yourself, this could potentially be a massive undertaking that delays income from the property. In addition, large amounts of construction debris or sloppy renters can create unwelcome situations for new renters or potential buyers. Playing “cleaning crew” yourself can become a physical, emotional, and financial burden.
The Risks of Not Hiring a Professional Cleaning Company
When you’re learning how to get started in real estate investing, it’s a good practice to look at the potential risks of short-cuts. Not having a reliable cleaning company at your disposal can compromise your investment in a number of ways.
- Delayed sales and rental agreements. An experienced cleaning company can often get a property ready to sell or rent in just a few days. However, if you’re DIYing this job, it could take much longer. In some cases, you might even be responsible for another out-of-pocket mortgage payment without a buyer or renter to cover the costs. Delayed contracts mean higher costs for you.
- Shoddy outcomes. Having a well-regarded cleaning company on retainer can ensure you have access to the quality cleaning and sanitizing services you need on-demand. Without this, you may be forced to either clean properties yourself or take a chance on an unknown company with availability. This could leave you vulnerable to less-than-desirable outcomes. In many cases, investors don’t have access to the equipment they need to do a thorough cleaning job, while “just any” company they hire might exhibit poor workmanship. Ultimately, that means wasting time and money and being left with a property that isn’t in shape for a showing.
- Higher costs. Having a cleaning company on retainer can allow you to reduce costs and maintain your budget to maximize returns when investing in residential real estate. Assuming you make good use of your cleaning services on a regular basis, retainer fees can be more affordable than making individual payments each time you need a property to be cleaned. You may be able to negotiate with your cleaning service of choice in exchange for providing the company with steady business. Hiring a different cleaning crew for every project can add up, particularly if you have to pay more to make up for their poor attention to detail. By building a relationship with one company, you can stick to your budget and have reliable help whenever you’re in a jam.
- Unhappy buyers and tenants. Whether you’re focusing on short-term investment property investing (including Airbnb properties), fix-and-flips, or long-term rental properties, you should always put your best foot forward. When taking listing photos or showing the property to potential buyers and tenants, you’ll certainly get better results with a turnkey appearance. Prospective buyers and tenants won’t want to spend time cleaning. In many cases, they won’t be inclined to see beyond the dirt. Having a cleaning crew on retainer can ensure a property will be ready in less time (without sacrificing quality), allowing you to maximize profits and impress property viewers.
- Undue stress and damaged reputation. As a real estate investor, it’s critical to consider the big picture. Although it might sound nice to save some money on your real estate investment strategy by forgoing “unnecessary” steps, there are certain aspects to a renovation on which an investor simply can’t compromise. Hiring a cleaning service is one of them. Not only will going the DIY route take up a lot of time, but it requires an incredible amount of effort. In addition, if your properties aren’t in great shape, your reputation might take a hit as a result. To reduce stress and protect your image in the real estate market, it’s best to work with a vetted cleaning team that meets your standards with every property.
You might assume that hiring a cleaning company won’t make or break the success of your investment properties. However, given the severity of the risks we mentioned on your bottom line, property investors can’t afford to skip this step. To avoid income delays, high costs, inferior results, dissatisfied clients, high-stress levels, and potential brand damage, partnering with an excellent cleaning company is one of the best additions to your real estate investing team for long-term success!
Find the Best Cleaning Company For Your Real Estate Investments
With an understanding of the risks and rewards we’ve talked about today, it’s clear that property investors need to find a reputable cleaning company to maximize success with rental real estate investing and other types of property investments. While finding a good cleaning company will require a bit of effort, it’s worth doing as you start operating a rental property or flipping properties.
When evaluating potential cleaning partners, be sure to read online reviews, compare quotes, and work with a local company with an excellent reputation. You may even want to try out a couple of companies before approaching them with a retainer proposal. Finally, as you find a cleaning crew you can rely on and start building your real estate portfolio, make sure you also have a reliable source to find new properties and the best deals!
The Privy Advantage helps investors spend less time finding properties and more time making excellent deals to build long-term income. Reach out soon to learn more about how our software delivers new deals to your inbox daily!
Learn more about building the team you need for success with the insights in our free resource, “Assemble Your Real Estate Investing Team: A Worksheet.”
