Property preservation companies are needed to help banks maintain properties repossessed through foreclosures in order to preserve property values and meet local ordinances on property care and maintenance. According to RealtyTrac, over 1,836,634 million properties were foreclosed on during 2012 -- properties that banks could wind up owning and be responsible for upkeep. Banks generally do not employ in-house workers to care for these properties and will commonly contract this work out to businesses that have the right qualifications and backgrounds in preservation.
Duties and Responsibilities
Property preservation companies are expected to make sure a house is unoccupied and properly secured by changing all the locks and possibly boarding up windows and doors to prevent entry by outsiders. Inspections of the interior and exterior are to be performed to look for damage and repairs made. Winterization and extermination work should be done when necessary. Utilities must be properly shut down and ongoing lawn and property maintenance are completed when needed. Some institutions, like Fannie Mae, provide a Property Preservation Matrix that contractors use to see what work they are permitted to perform -- and how much is allowed as payment for that work.
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To thrive, a property preservation company must have both ability and expertise to carry out all contractual duties and responsibilities. Contractors should have the equipment and expertise to carry out the assignments that need to be completed. They should be locally licensed to perform work in the property's geographic area. Contractors also must have liability insurance in case of damages or injuries resulting from their work.
Contact the Bank
Almost every bank has a Real Estate Owned or REO department that handles the properties it has repossessed. Contact the REO department of each lender providing mortgages in their area to determine if the services you offer are needed. In many cases, lenders might already have companies lined up to do this work, and may only place your company name on a waiting list. However, opportunities can arise when a company fails to live up to their responsibilities and gets dismissed, or a lender experiences a sudden influx of repossessed properties and their current contractors cannot meet the demand.
Contact the larger property preservation companies doing work in your local area. Some of these larger companies, like Cyprexx Services, actively recruit small contractors to perform plumbing, electrical, roofing and other home maintenance services to help maintain the repossessed properties under their care. Vendors can often apply online at the larger companies to gain entry into the property preservation industry.