A well-maintained property is most often an asset that can appreciate over time. For default or foreclosed properties, servicers try their best to ensure that the properties continue to remain well-managed. This is so that such properties will be viewed more positively when they come up for REO sale.
However, since servicers do not have the capacity to manage and handle the entire maintenance activities themselves, experienced Property Preservation companies come into the picture. Property preservation companies provide precious help and support to servicers by offering services to take care of, on their behalf, foreclosed properties that require cleaning and maintenance, among other things.
As the world is reeling under the impact of the COVID-19 pandemic, property preservation has become an even bigger buzzword as defaults and foreclosures are on the rise. In the month of March, when the pandemic started raging, it turned the $4.4 trillion U.S. real estate finance market upside down. Beyond the serious and heart-wrenching health and economic worries stemming from the crisis, a new wave of mortgage default foreclosures also started looming on the horizon.
Amidst these rising defaults and foreclosures, the role of property preservation companies has increased exponentially. They came in to offer a variety of services from coordinating with contractors to lawn and garden maintenance to keep the properties in good shape until they were sold.
However, it isn’t easy being a Property Preservation company, especially during such severe crisis situations. There are a host of challenges such companies are being forced to face during this time.
Properties in a foreclosure most often need an immediate investment for maintenance and repairs. This means, as a Property Preservation company, you will need to have a steady flow of contractors and other employees always ready to handle the complete emergency repairs. You will require an impeccable organizational structure that will let your maintenance team swing into action to improve the home and its future sales prospects.
Chronic Issues in Property Maintenance
Once you start the maintenance, you may realize that there are chronic concerns that were not addressed since long like a leaky roof that has caused rot or mold. There could also be issues like a rotten step that could turn the staircase into a hazard. You may also discover that when the previous owners or tenants left the place, they moved out in a hurry and in the process left behind a huge mess. They may have probably left behind pieces of furniture or garbage lying right there. All these issues need to be managed well.
While there may be several issues to face when the property comes for preservation, before that too, it’s not easy to survive in the volatile environment that the business is. The state of the economy and the housing sector can have a massive and immediate impact on property preservation. Also, companies have to face tough competition from many other big and small players in the field.
Market Ups and Downs
Another key challenge for Property Preservation companies is facing the vagaries of the market and operating amidst these fluctuations. Especially, in situations like the pandemic, there is a huge amount of uncertainty surrounding most businesses and property preservation is no exception. In a general scenario, when consumer assurance grows and interest rates remain low, there are fewer foreclosures. The need for property preservation business’ services is likely to decrease at such times.
How Property Preservation Companies Can Deal with the Challenges
To overcome such challenges, the best way is to join hands with an expert partner who has the market experience and who can lend back office support services to help Property Preservation companies manage the most complex tasks with the utmost ease. Given the myriad obstacles in the default space due to ever-changing rules and regulations, software updates and changes, chargebacks, and the need to manage a large vendor base effectively while maintaining good quality work, Property Preservation companies could definitely benefit by relying on a skilled partner.
How PrologiQ Can Help
Companies like PrologiQ have a well-trained Property Preservation team that helps you to manage every demanding job in the space while reducing costs by more than 50%. The company’s specialized environmental engineers also offer consultation on special properties that are causing environmental hazards. PrologiQ offers a suite of services in the Property Preservation and Inspection space including Pre Foreclosure and REO Inspections on both Maintenance and Repair Orders, Utility Turn On and Off, Vacant Property Ordinance Research and Registration, HOA – Identification and Management, Utility Bills Management, Curative Services / Code Violation Identification and Resolution, Vendor Management Services, and Recurring Services that include Bi-Weekly Inspections, Lawn Care and Winterization.
As a property preservation company, if you are serious about expanding your business, PrologiQ can help you. We can manage your existing portfolio of properties and increase your capacity over time. To discuss more about the services, you can reach out to us at email@example.com