Starting a move-out cleaning business is a rewarding venture that combines a knack for detail with smart business sense. With the residential cleaning market worth billions, you can tap into a steady stream of clients like renters who want their deposit back, landlords preparing for new tenants, and real estate agents staging homes.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and acquiring equipment to help you launch a successful move out cleaning business in the U.S.
Step 1: Plan and validate your business
Market and competitor research
First, identify your ideal clients. Focus on property managers, real estate agents, and large apartment complexes. You can find them through local real estate association directories or by searching on LinkedIn for property managers in your city. This gives you a direct list of potential customers.
Next, analyze your local competition on Google Maps, Yelp, and Thumbtack. Look at their pricing structures, service packages, and customer reviews. Pay special attention to negative reviews, as they reveal service gaps in the market that your business can fill.
Estimate your startup costs
With a clear view of the market, you can map out your finances. Initial startup costs for a move-out cleaning business typically range from $2,000 to $5,000. A frequent misstep is to buy cheap, consumer-grade equipment to save money upfront. This approach often backfires with poor results and slower job times.
Here is a realistic breakdown of initial expenses:
- Professional Equipment & Supplies: $500 - $1,500 for items like a commercial vacuum, steam cleaner, and bulk cleaning solutions.
- Business Formation & Licensing: $100 - $500 to register your business name and obtain local permits.
- General Liability Insurance: $400 - $600 for an annual policy.
- Initial Marketing: $300 - $700 for a simple website, business cards, and flyers.
Here are 3 immediate steps to take:
- List five large apartment complexes in your area to target for contracts.
- Analyze the service packages and pricing of three local competitors you found on Yelp.
- Create a detailed startup budget based on the cost estimates above.
Step 2: Set up your legal structure and get licensed
You might want to consider forming a Limited Liability Company (LLC). This structure protects your personal assets, like your home and car, from business debts or lawsuits. Many new owners operate as sole proprietors to save money, but this choice exposes their personal finances to risk.
Secure your licenses and permits
First, get a free Employer Identification Number (EIN) from the IRS website. You need this number to open a business bank account and hire employees. It functions like a Social Security number for your business.
Next, check your state and city government websites for business license requirements. Most cities require a general business permit, which can cost between $50 and $150 annually. Expect a processing time of two to four weeks for approval.
Here are 3 immediate steps to take:
- File your LLC's Articles of Organization with your state's Secretary of State office.
- Apply for a free Employer Identification Number (EIN) directly on the IRS website.
- Search your city's official website for the "business permit application" to find specific local requirements.
Step 3: Purchase insurance and manage risk
With your legal structure in place, the next move is to protect your business. General liability insurance is non-negotiable. It covers accidental property damage, like spilling bleach on a client’s carpet. Aim for a policy with at least $1 million in coverage, which typically costs $400 to $700 annually.
You should also get a janitorial bond. This protects you if a client accuses you or an employee of theft. Many new owners skip this to save money, but at only $100 to $250 per year, it is a small price for the trust it builds with property managers.
Additional coverage to consider
If you hire employees, most states require you to have workers' compensation insurance. Also, if you use a vehicle mainly for business, a commercial auto policy is necessary. Your personal auto insurance likely will not cover accidents that happen on the job.
Finally, look into professional liability insurance. This covers claims of negligence if a client argues your work was subpar and cost them money, such as a lost security deposit. For quotes, contact providers like Next Insurance, Hiscox, or The Hartford who specialize in policies for cleaning businesses.
Here are 3 immediate steps to take:
- Request a quote for a $1 million general liability policy.
- Ask your insurance agent about adding a janitorial bond to your coverage.
- Compare quotes from two specialized providers, such as Next Insurance and Hiscox.
Step 4: Secure your space and equipment
Set up your home base
You do not need a commercial office. A home office is sufficient for administrative tasks. For storage, a 5x10 foot storage unit provides about 50 square feet, which is enough space for your equipment and supplies. Check your city’s website for home occupation permit rules.
Purchase professional-grade gear
Many new owners buy consumer-grade equipment to cut costs, but these items fail under heavy use. Invest in commercial-grade gear from janitorial suppliers like Uline or SupplyWorks. They handle daily work better and make your jobs faster. Expect minimum orders around $100.
Your initial equipment investment will be between $700 and $1,500. Here is a sample list:
- Commercial Backpack Vacuum: $300 - $600
- Vapor Steam Cleaner: $200 - $400
- Microfiber Mop System: $75 - $150
- Bulk Cleaning Chemicals: $100 - $250 for initial stock
Here are 3 immediate steps to take:
- Research monthly rates for a 5x10 foot storage unit near you.
- Price a commercial backpack vacuum from two different janitorial supply websites.
- Create a starter supply list with bulk chemicals and microfiber towels.
Step 5: Set up your payment system
Establish clear payment terms from day one. A standard practice is to require a 50% deposit to secure the job. You then collect the remaining balance upon job completion. This protects you from last-minute cancellations and ensures you get paid for your work.
You need a reliable way to accept payments, especially on-site. Many new owners get stuck with processors that have high fees and clunky hardware. Look for a solution with transparent pricing that lets you take credit cards, debit cards, and digital wallet payments easily.
For move-out cleaning businesses that need to accept payments on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone. Just tap and you are done. It is a simple way to get paid right after a final walkthrough.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful to collect final payments from tenants or property managers on site. Average commission rates from other payment solutions are often higher, which eats into your profit.
- 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:
- Draft your payment policy, including a 50% deposit requirement and accepted payment methods.
- Download the JIM app to see how it works for on-site payments.
- Compare JIM's 1.99% transaction fee with the rates of two other payment processors.
Step 6: Secure funding and manage your finances
Funding options for your business
Most owners fund their launch with personal savings. You do not need a large bank loan. A business credit card can cover initial supplies, but you should pay the balance off quickly to avoid high interest rates. This approach keeps you out of debt early on.
If you need a small boost, look into the SBA Microloan program. These loans range from $500 to $50,000 and are perfect for buying professional equipment. Interest rates typically fall between 8% and 13%. Local community development financial institutions (CDFIs) often administer these loans.
Set up your financial systems
Once you have funding, open a dedicated business checking account. This separates your business finances from your personal ones, which is a key step for protecting your personal assets if you have an LLC. It also simplifies tax preparation.
You should plan to have about $2,500 to $3,500 in working capital. This amount covers your first six months of operating costs like fuel, insurance, and marketing before you have a steady client base. Also, consider using simple accounting software like Wave or QuickBooks Self-Employed to track every dollar.
Here are 3 immediate steps to take:
- Open a dedicated business checking account to keep finances separate.
- Research SBA microloan lenders in your state for equipment financing.
- Calculate your estimated operating costs for the first six months.
Step 7: Hire your team and set up operations
Build your cleaning crew
When you are ready to hire, look for a "Cleaning Technician." Pay between $18 and $25 per hour to attract reliable staff. A mistake many new owners make is hiring independent contractors to save on taxes, but this can lead to legal trouble with the IRS over worker misclassification.
It is often safer to hire W-2 employees. This gives you more control over their schedule and work quality, which is important for maintaining your brand's reputation. You can post job openings on sites like Indeed or local community job boards.
Standardize your workflow
To ensure consistent quality, create a detailed, room-by-room cleaning checklist. This document becomes your training guide and quality control standard. Also, provide basic safety training on chemical handling, following OSHA guidelines, to protect your team and limit liability.
Next, streamline your daily schedule. Use a scheduling software like Jobber or Housecall Pro to manage appointments, dispatch teams, and handle invoicing from one place. As you grow, plan for labor costs to make up 40-50% of your total revenue. This is a healthy benchmark for profitability.
Here are 3 immediate steps to take:
- Draft a job description for a Cleaning Technician with a competitive pay rate.
- Create a detailed, room-by-room move-out cleaning checklist.
- Compare the features of Jobber and Housecall Pro to see which fits your needs.
Step 8: Market your business and get clients
Go straight to the source
Focus your efforts on property managers and real estate agents. Build a list from LinkedIn or local real estate association directories. A personalized email that highlights your reliability and shows you understand their needs often works well. A 1-3% response rate is a solid start.
Another effective strategy is to attend local real estate investor meetups. These events put you in a room full of potential long-term clients. Bring business cards and be ready to explain your service packages and pricing structure.
Establish your digital footprint
Set up a Google Business Profile immediately. Ask your first few clients for reviews. Many new owners overlook this, but positive reviews are powerful social proof for property managers who search for local services. Your goal is to keep your Customer Acquisition Cost (CAC) below $100 per client.
Your website does not need to be complex. A one-page site with your services, contact information, and photos of completed jobs is enough. You can build this for under $200 using a platform like Squarespace or Wix.
Here are 3 immediate steps to take:
- Create a list of 20 local property managers to contact via email.
- Set up your free Google Business Profile and plan how to get your first five reviews.
- Draft a template email to introduce your services to real estate agents.
Step 9: Price your services and create packages
Set your pricing model
Most move-out cleaning jobs use flat-rate pricing. For example, a standard 2-bedroom, 2-bathroom apartment might cost between $350 and $500. Alternatively, you can charge an hourly rate of $45 to $75 per cleaner, which is useful for properties that need extra work.
To find your price point, analyze competitors on Yelp and Thumbtack. A frequent misstep is to underprice just to win a bid. Property managers prioritize reliability over the lowest cost, so price your services to reflect quality work and aim for a 30-50% net profit margin.
Create your service packages
You might want to offer two main packages. A "Standard Clean" can cover all surfaces, floors, bathrooms, and the kitchen. A "Deep Clean" package could include add-ons like cleaning inside the oven and refrigerator, washing interior windows, and cleaning inside all cabinets.
Price these add-ons separately. For instance, you could charge an extra $50 for appliance interiors and another $75 for window tracks. This allows clients to customize the service to their budget while increasing your average job value. Clear packages prevent scope creep and manage client expectations.
Here are 3 immediate steps to take:
- Calculate a flat-rate price for a standard 1,200 sq. ft. apartment in your area.
- Define a "Standard" and "Deep Clean" package with a list of specific tasks for each.
- Create a price list for three add-on services, such as oven cleaning or window washing.
Step 10: Scale your business and maintain quality
Maintain quality standards
As you get more clients, consistency is everything. It is easy to let quality slip during a growth phase. To avoid this, implement a simple quality control check. After each job, use your master cleaning checklist for a final walkthrough to ensure nothing was missed.
You can measure client happiness with a simple metric. Send a follow-up email that asks for a 1-to-5 star rating and aim for a 95% satisfaction rate. For added credibility, you might have a team member pursue a certification from the IICRC.
Know when to scale
With your quality checks in place, you can plan for growth. Avoid the temptation to expand too fast, as it often overwhelms your systems. A good benchmark is to hire a new technician for every 15-20 recurring jobs you add per month.
Your revenue is also a great guide. Once you consistently hit $8,000 to $10,000 in monthly revenue, you likely have enough cash flow to support a second team. Use scheduling software like Jobber or Housecall Pro to manage the added complexity of more staff and jobs.
Here are 3 immediate steps to take:
- Create a post-job inspection checklist based on your service packages.
- Set up an automated follow-up email that asks for a 1-5 star rating after each job.
- Calculate the monthly revenue needed to cover the salary of one new full-time technician.
You now have a solid plan to launch your move-out cleaning business. Remember, your best clients are property managers who value reliability over the lowest price. Build that trust from day one. With this guide, you are well-equipped to turn your hard work into a successful venture.
And when it comes to getting paid, keep it simple. JIM turns your smartphone into a card reader, letting you accept payments on the spot without extra hardware for a flat 1.99% fee. This way, your funds are available immediately. Download JIM and you are set.
