Starting a maintenance business is a rewarding venture that combines practical repair skills with business savvy. The property maintenance industry is a multi-billion dollar market, fueled by a steady demand for repairs and upkeep from homeowners, commercial property managers, and landlords.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining the right licenses, and acquiring equipment to help you launch a successful maintenance business in the U.S.
Step 1: Plan your business and validate your idea
First, define your service area and niche. Will you serve residential homes, commercial properties, or both? A focus on a specific area, like a 15-mile radius, or a niche, like rental property turnovers, can help you stand out initially.
For demand research, monitor local Facebook Groups and Nextdoor. Note the most common repair requests. You can also speak with local real estate agents or property managers. They often have a list of go-to contractors and can tell you where they see service gaps.
Analyze competitors and set your rates
Use Google Maps and Yelp to identify at least five maintenance businesses in your target area. Study their services, read customer reviews for their strengths and weaknesses, and check their websites for any pricing information. A frequent misstep is to compete solely on price.
Instead of a price war, find a gap you can fill. Perhaps competitors are slow to respond or do not offer weekend appointments. This is your opportunity. Your pricing should reflect your skill, insurance costs, and desired profit margin, not just what others charge.
Estimate your startup costs
Your initial investment will vary, but you can expect a range of $12,000 to $35,000. A reliable work vehicle is a large part of this, so you might want to explore financing options early. Here’s a typical breakdown:
- General Liability Insurance: $600 - $2,000 per year
- Business Licensing & LLC Formation: $100 - $500
- Essential Hand & Power Tools: $2,000 - $5,000
- Used Work Van or Truck: $10,000 - $25,000
- Basic Marketing (cards, website): $300 - $1,000
Here are 4 immediate steps to take:
- Draft a list of 10 specific services you can confidently offer right now.
- Identify five local competitors and note one service gap for each.
- Get a preliminary quote for general liability insurance.
- Create a spreadsheet of tools you own versus tools you need to purchase.
Step 2: Set up your legal structure and get licensed
Choose your business structure
Most new maintenance businesses should form a Limited Liability Company (LLC). This structure separates your personal assets from business debts. Operating as a sole proprietor is simpler but leaves your personal car and home at risk if the business is sued.
An LLC offers pass-through taxation, so business profits are taxed on your personal return. You can file for an LLC through your state's Secretary of State website. Costs range from $50 to $500, and processing takes a few days to several weeks.
Secure federal, state, and local licenses
First, get a free Employer Identification Number (EIN) from the IRS website. You need this to open a business bank account and hire employees, even if you start with just yourself. The process takes about 15 minutes online.
Next, check your state and city requirements. Most locations require a general business license, which typically costs $50 to $150 annually. Your city clerk's office or county website is the place to start your search for the right forms.
Be careful about the size of jobs you take. Many states require a contractor's license for any project over a certain value, often $500 to $1,000. Check your state's contractor licensing board website before you bid on larger projects to avoid fines.
Here are 4 immediate steps to take:
- Decide if an LLC is the right structure for your business.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Find your state's contractor license board and check its project value limit.
- Visit your city's website to find the application for a general business license.
Step 3: Protect your business with the right insurance
Insurance is your financial safety net. A single accident without coverage can wipe out your business before it even gets going. Your investment in the right policies protects your assets, your reputation, and your peace of mind.
Key insurance policies for your business
Start with General Liability insurance. This covers you if you damage a client's property or cause an injury. Most policies offer $1 million in coverage, with annual premiums from $600 to $2,000. A frequent oversight is relying on a personal auto policy for your work truck or van.
You need a separate Commercial Auto policy. It is specifically for business use. Also, consider Tools and Equipment insurance, often called inland marine coverage. This protects your gear from theft or damage, whether it is in your vehicle or at a job site.
If you hire anyone, even part-time, most states require you to have Workers' Compensation insurance. This covers medical bills and lost wages if an employee gets hurt on the job. Check your state's specific requirements, as penalties for non-compliance are steep.
Finding a provider and managing costs
You might want to get quotes from providers that focus on small businesses and contractors, such as Next Insurance, Hiscox, or Thimble. They understand the risks of your trade. Bundling multiple policies with one provider can often lead to a discount of 10-15%.
Here are 4 immediate steps to take:
- Get a quote for a $1 million General Liability policy.
- Contact your auto insurance agent to ask about a Commercial Auto policy.
- Research your state's requirements for Workers' Compensation insurance.
- Make a list of your tools and their value to get a quote for equipment coverage.
Step 4: Secure your space and buy equipment
Find a home for your business
You do not need a commercial storefront. Most maintenance businesses start from a home garage or a small storage unit. If you use your home, check your local zoning ordinances to confirm a home-based business is permitted. Some neighborhoods have restrictions.
A 10x15 foot storage unit provides about 150 square feet, which is enough space for tools and materials. Before you sign a lease, ask the facility manager if you can operate a business from the unit. Some rental agreements prohibit it.
Get your equipment
Your work vehicle is your mobile base, but you still need a place for your gear. You can acquire a solid set of starter equipment for $2,000 to $5,000. A frequent misstep is to purchase everything brand new. Look for quality used items on Facebook Marketplace to save money.
- Cordless Drill & Impact Driver Set: $200 - $500
- 24-foot Extension Ladder: $200 - $400
- Basic Plumbing Tools: $100 - $300
- Drywall Repair Tools: $50 - $100
For supplies, open a pro account at Home Depot or Lowe's. These accounts give you access to purchase tracking and potential discounts. They do not have minimum order quantities, so you can buy what you need for each job.
Here are 4 immediate steps to take:
- Check your city's website for home-based business zoning rules.
- Call two local storage facilities to ask about their rates and business policies.
- Price out your starter equipment list both new and used.
- Register for a free pro account at Home Depot or Lowe's online.
Step 5: Set up your payment processing
A mistake many new owners make is offering "Net 30" terms, which can strain cash flow. Instead, set your payment term to "Due upon receipt." This means you expect payment as soon as the job is finished, which keeps your finances healthy.
For larger projects over $500, you might want to require a deposit. A 25-50% upfront payment helps cover material costs. You can outline these terms in a simple service agreement that details the work scope and total cost before you begin.
You need a way to accept payments on the go. While average commission rates from other providers can be as high as 3.5%, there are better options. For maintenance businesses that need to accept payments on-site, JIM offers a streamlined solution.
With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and done. At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for collecting payment immediately after a small repair.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done—no waiting for bank transfers.
Here are 3 immediate steps to take:
- Set your standard payment term to "Due upon receipt."
- Create a basic service agreement template for jobs over $500.
- Download the JIM app to see how it works for on-site payments.
Step 6: Fund your business and manage finances
Secure your startup funding
For equipment or a vehicle down payment, you might want to look into an SBA Microloan. These loans range from $500 to $50,000, with interest rates typically between 8-13%. Lenders like Accion Opportunity Fund often work with new service businesses.
A business credit card with a 0% introductory APR is also a solid choice for initial supplies. A trap many fall into is using personal cards for business buys. Keep finances separate from day one to avoid a headache at tax time.
Set up your financial systems
You will need working capital to cover costs before client payments come in. You should aim to have enough cash to cover your first six months of fuel, insurance, and marketing. This is typically between $3,000 and $6,000 for a new maintenance business.
To track your money, use software like Wave, which is free, or QuickBooks Self-Employed. This lets you see your income, log expenses, and understand your profit margin on every job. It makes tax filing much simpler down the road.
Here are 4 immediate steps to take:
- Research SBA Microloan lenders like Accion Opportunity Fund.
- Apply for a business credit card that offers a 0% introductory APR.
- Calculate your estimated working capital needs for the first six months.
- Create a free account with Wave to track your business income and expenses.
Step 7: Hire your first employees and set up operations
Hire your first technician
Once you are consistently booked for two to three weeks out, it is time to hire. Your first hire should be an experienced Maintenance Technician. Look for someone with at least three years of field experience in tasks like basic plumbing, drywall repair, and painting.
Pay for this role typically ranges from $22 to $30 per hour, based on skill and location. A mistake some owners make is hiring someone too green to save money. This often backfires with callbacks and poor reviews. Experience is more valuable than formal certifications for general maintenance work.
Set up your field service software
As you grow, you need a system to manage jobs. Software like Jobber or Housecall Pro helps you schedule work, dispatch technicians, and send invoices from one place. You can start with Google Calendar, but dedicated software saves hours of administrative work each week.
A good rule is for each technician to generate 2.5 to 3 times their annual salary in revenue. If you pay a technician $50,000 per year, they should bring in between $125,000 and $150,000 in business. This metric helps you price jobs for profitability.
Here are 4 immediate steps to take:
- Draft a job description for a Maintenance Technician.
- Research local pay rates for technicians on Indeed or Glassdoor.
- Sign up for a free trial of a scheduling software like Jobber.
- Calculate the annual revenue target for your first hire based on their salary.
Step 8: Market your business and get customers
Start with a free Google Business Profile. This is how local customers will find you on Google Maps and in search results. You might also want to try physical marketing. Order 250 door hangers and distribute them in a neighborhood you want to work in.
Your best source of recurring work can come from property managers and real estate agents. You can find them on LinkedIn or by calling local realty offices. Offer them a reliable solution for their repair needs. A single property manager can provide dozens of jobs per year.
Build your online presence
A simple website builds trust. It should list your services, show your service area, and feature photos of your completed work. For social media, focus on local Facebook groups. Answer questions and offer advice to establish yourself as a helpful expert, not just a salesperson.
A frequent mistake is not tracking where customers come from. You should ask every client, "How did you hear about us?". This helps you calculate your Customer Acquisition Cost (CAC). If you spend $200 on ads and get two jobs, your CAC is $100 per job.
Here are 4 immediate steps to take:
- Set up and fully complete your free Google Business Profile.
- Design and order 250 business cards to give to potential clients.
- Identify three local property management companies to contact.
- Join two neighborhood Facebook groups to monitor for opportunities.
Step 9: Price your services for profit
Choose your pricing model
You have two main options: hourly or flat-rate. An hourly rate, typically $60 to $90, is simple. A mistake many make is not setting a minimum service fee, like one or two hours, to make small jobs worthwhile.
Flat-rate pricing offers clients a clear, upfront cost. For example, you might charge $225 to install a ceiling fan. This model requires you to accurately estimate your time and material costs before you start the work.
Calculate your costs and profit
Your price must cover more than just your time. You should add a markup of 50-100% on all materials you supply. If a part costs you $50, you should charge the client between $75 and $100 for it.
Aim for a net profit margin of 30-50% on your labor after you account for all business expenses. A trap many fall into is forgetting to factor overhead like insurance, fuel, and software into their hourly rate calculation.
Here are 4 immediate steps to take:
- Calculate your minimum hourly rate to cover all business and personal expenses.
- Create a flat-rate price list for your five most common repair jobs.
- Decide on a standard markup percentage for materials, such as 75%.
- Call two local competitors for a quote on a simple job to gauge market rates.
Step 10: Control quality and scale your operations
Establish your quality standards
Your reputation depends on consistent work. You should track your callback rate, which is the percentage of jobs that require a return visit to fix an issue. A rate above 5% is a sign that you have a problem with workmanship or communication.
Some owners make the mistake of not tracking this metric at all. Also, consider certifications to stand out. An EPA 608 certification for appliance repair or a Certified Pool Operator (CPO) license for pool work can help you command higher prices.
Know when to grow
Once you are consistently booked three or more weeks in advance, it is a strong signal to hire another technician. This prevents you from turning down work and burning out. This is also the point where you outgrow simple scheduling tools.
With a second technician, you might want to upgrade from Google Calendar to field service software like Jobber or Housecall Pro. These platforms help manage complex schedules, optimize routes, and keep track of client history without the administrative headache.
Here are 4 immediate steps to take:
- Calculate your callback rate from your last 20 jobs.
- Research the requirements for one certification relevant to your services.
- Set a revenue goal that would trigger hiring your next technician.
- Watch a demo video for Jobber or Housecall Pro to see its features.
Your journey begins with one repair, but your business is built on trust. A reputation for reliable work will bring you more clients than any advertisement. You have the steps; now go build a business you are proud of.
As you complete each job, getting paid should be just as straightforward. JIM lets you accept cards right on your smartphone for a flat 1.99% fee, with no extra hardware. Download JIM and you are ready for your first customer.
