The Dirty side of Real Estate money making

the dirty side of real estate money making

This is also another way you can participate in making money in the Real Estate Industry. This is can be a real estate stand-alone service or could be part of a packaged service of property management.

What am I talking about? I’m talking about cleaning services. The cleaning industry may not be the most glamorous or complex, but established business owners say there's always something to learn and that someone has to do the “Dirty Work”!

As I have mentioned on previous real estate articles, when you have a property for rent, you have to do everything to make that space actively income generating. You have to be the landlord and collect fees. A marketer to promote your “for rent” property (that includes photography, doing open houses, engaging potential customers and the like). Manage the cash in/outflows (utilities, money management) and that also includes maintenance and cleaning!

Recommended Read: Lazy Real Estate Investment - Condotels

Service Pricing

There are multiple ways to estimate, bid, and price real estate cleaning services (Condo, residential, small office spaces and the like). The most common practices include:

1. Flat rate - Contractors charge a set fee or flat rate based on the size—number of bedrooms and bathrooms and/or square footage—plus any extra services the customer requests or needs. Costs also depend on the services provided such as painting, carpet cleaning, and maintenance repairs normally incur an additional cost.

2. Cost-plus or time and materials - In this scenario, the customer agrees to pay the cost of labor, supplies, chemicals, and equipment, plus overhead and/or other costs, with or without a cap (plus profit!).

3. Cost per sqm – This pricing model is employed for specific types of services based on size of space cleaned. This is for large spaces that requires a lot of work (Warehouse, multiple buildings..etc.)!

4. Hourly rate - In this scenario, service providers establish an hourly rate for specific types of services and simply multiply the hourly rate by the number of hours it takes to complete the work. Any additional costs are negotiated separately (materials, marketing/referral service..etc.).

5. Packages – A combination of cleaning service plus marketing service. Could also be an exclusive short/long-term partnership wherein you manage both cleaning and rental services of a condo or residential property.

Recommended Read: How to avoid Real Estate scams in the Philippines

Three tips on starting in the cleaning industry:

Don't try to be all things to all people, pick a niche market you can best serve, and focus on that. For example, choose to service smaller office buildings as a start and grow from there. Excel in what you're doing and build consistency in the services you provide.

The quality of your cleaning is important, but it's not everything. Customer service is also important by building strong relationships with your clients. Ask for feedback to find out any room for improvements.

Regardless of what you're cleaning and whether you're doing traditional housecleaning, janitorial work, or providing a specialty cleaning service, clean like you're cleaning your own home or office!

What do you think of the dirty side of real estate money making?

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The Dirty side of Real Estate money making The Dirty side of Real Estate money making Reviewed by Vernon Joseph Go on Sunday, September 23, 2018 Rating: 5

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