Writing a business plan, determining the business's legal structure, choosing a location and obtaining financing are the first steps to starting a property preservation business, according to the U.S. Small Business Administration. Business owners also must register their business names with their states, obtain federal and state tax identification numbers, and apply for the appropriate business licenses and permits.
The next step to starting a property preservation business is establishing an Internet presence with a professional website that highlights business relationships, advantages over competitors, specialized capabilities and professional experience. Business owners can perform Internet searches to discover competition in the local area, explains the Houston Chronicle. Some areas have multiple competitors in the same market, so preservation business owners must be able to meet the banks' requests immediately. Property preservation companies provide cleaning and maintenance service for foreclosed properties. Banks or other financial institutions hire property preservation companies.
Business owners then contact the real estate owned departments at major banks in their areas by submitting business summaries and requests for proposals, reports the Houston Chronicle. Proposals must reach the appropriate decision makers at the banks for contracts. Business owners should immediately act on contract proposals, so they need to have assets and workers in place before submitting proposals.