A vacation rental cleaning company is a business that cleans vacation rental facilities. Vacation rental cleaning service is a niche idea in the janitorial services industry and players in this line of business are usually up and doing to meet up with the cleaning demands of vacation rental facilities.
Vacation rental cleaning services encompass a wide range of services such as window washing, floor cleaning, vacuuming, furniture cleaning, carpet cleaning, air duct cleaning, water damage restoration, and other similar services.
The market size of the janitorial services industry in the United States increased steadily between 2011 and 2019, reaching a value of 77.25 billion U.S. dollars. Due to the coronavirus pandemic in 2020, the industry size decreased to a value of 72.66 billion U.S. dollars.
The global cleaning services market size was valued at $55,715.0 billion in 2020 and is projected to reach $111,498.8 billion by 2030, registering a CAGR of 6.5 percent from 2022 to 2030. The floor care segment was the highest contributor to the market, with $12,293.8 billion in 2020, and is estimated to reach $22,820.2 billion by 2030, at a CAGR of 5.7 percent during the forecast period.
Steps on How to Start a Vacation Rental Cleaning Business
Table of Content
Conduct Market Research
Conducting market research before starting any business is key to the success of the business hence you must not start a vacation rental cleaning business without conducting market research. This is so because Market research provides critical information about your market and your business landscape.
It can tell you how your business is perceived by the customers and clients you want to reach. It can help you determine who and where your customers are, and which customers are most likely to do business with you. In essence, thorough market research will help you understand how your target customers think to turn them into regular customers and brand advocates.
a. Who is the Target Market for Vacation Rental Cleaning Business?
- Vacation rental property companies
- Motels
- Hotels
b. Is Vacation Rental Cleaning Business a Profitable Business?
Yes, the vacation rental cleaning business is profitable. This is so because globally, the industry is projected to reach $111,498.8 billion by 2030.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the vacation rental cleaning business because the business is a niche idea in the janitorial cum commercial cleaning services industry.
d. Who are the Major Competitors?
- ABM Industries Inc.
- The Service Master Company, LLC
- CleanNet
- Anago Cleaning Systems
- Aramark Corporation
- Sodexo
- Jani-King Inc.
- Stanley Steemer International, Inc.
- ChemDry
- Pritchard Industries Inc.
- BONUS Building Care
- Red Coats
- UGL Unicco Services
- Vanguard
- Jan-Pro International
- Clean First Time
- Compass Group Plc
- Duraclean International Inc.
- Harvard Maintenance Inc.
- Steamatic Inc.
- Stratus Building Solutions
- Temko Service Industries Inc.
- Mothers House Cleaning.
e. Are There County or State Regulations or Zoning Laws for Vacation Rental Cleaning Business?
No, there are no county or state regulations and zoning laws for vacation rental cleaning businesses, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
f. Is There a Franchise for a Vacation Rental Cleaning Business?
Yes, there are franchise opportunities for vacation rental cleaning businesses. Here are some of them;
- TruBlue Total House Care
- Buildingstars Int’l. Inc.
- Bonus Building Care
- Home Cleaning Centers of America
- Jantize America
- Heits Building Services
- The Boardwalk Cleaning Co. Franchise LLC
- Maid Simple House Cleaning
- ANB Clean Franchising LLC.
g. What Do You Need to Start a Vacation Rental Cleaning Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Office facility
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Cleaning Supplies and Equipment
- Employees
- Startup Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a vacation rental cleaning business are;
Creative Vacation Rental Cleaning Business Name ideas
- Maimi Harbor® Vacation Rental Cleaning Services, LLC
- Angelic White® Vacation Rental Cleaning Services, LLC
- Albertian Roe© Vacation Rental Cleaning Services, Inc.
- Decagon® Commercial Cleaning Company, Inc.
- Christian Tomball™ Vacation Rental Cleaning Services, Inc.
- Rowland Justin™ House Cleaning Services, Inc.
- Joseph Léonard © Vacation Rental Cleaning Services, Inc.
- Jose® Commercial Cleaning Services Company, LLC
- Daniella Jake© Commercial Cleaning Services, Inc.
- Green Life© Commercial Cleaning Services, Inc.
- Double Clean® Vacation Rental Cleaning Services, LLC
- Lake Freetown® Vacation Rental Cleaning Services, LLC
- Benjamin Jordan© Vacation Rental Cleaning Services, Inc.
- Jay Township® Vacation Rental Cleaning Company, Inc.
- Cloe Lucas ™ Vacation Rental Cleaning Services, Inc.
- Fresh Air™ Vacation Rental Cleaning Services, Inc.
- King’s Pride© Vacation Rental Cleaning Services, Inc.
- Queen’s Pride® Vacation Rental Cleaning Company, LLC
- Shining Star© Vacation Rental Cleaning Services, Inc.
- Parada© Vacation Rental Cleaning Services, Inc.
Register Your Business
a. What Type of Business Structure is Best for a Vacation Rental Cleaning Business?
The truth is that you have several options when it comes to the business structure of a vacation rental cleaning business, but the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Start a Vacation Rental Cleaning Business?
- General Business License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your office
d. What Type of Certification is Needed to Start a Vacation Rental Cleaning Business?
In reality, you don’t need any special certifications to start a vacation rental cleaning business but you can work towards owning one or more of the following certifications;
- Institute of inspection cleaning and restoration certification – IICRC
- International janitorial cleaning services certification – IJVSC
- House cleaning technician certification – HCT
- Cleaning business owner certificate – CBO
e. What Documents are Needed to Start a Vacation Rental Cleaning Business?
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Terms of Use
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a vacation rental cleaning business, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Vacation Rental Cleaning Business?
On average, you can budget as low as $5,000 to as much as over $100,000 to start your vacation rental cleaning business.
b. What are the Costs Involved in Starting a Vacation Rental Cleaning Business
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding and Promotions – $2,000.
- Business Consultant Fee – $2,500.
- Insurance – $1,400.
- Rent or lease – $50,000
- Other start-up expenses like commercial satellite TV subscriptions, and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Website: $850
- Miscellaneous: $3,000
c. What Factors Determine the Cost of Starting Vacation Rental Cleaning Business?
- The size of the vacation rental cleaning business
- The choice of locations
- The required licenses and permits
- The cost of branding, promotion, and marketing
- The cost of furnishing and equipping the facility
- The cost of insurance
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
No, it is not compulsory to build new facilities for your vacation rental cleaning business, you just need a budget-friendly office to start the business. This is because your services will be deployed in your client’s facilities (vacation rental facilities).
e. What are the Ongoing Expenses of Vacation Rental Cleaning Business?
- Cost of stocking up supplies such as disinfectant, soft scrub, high duster, caddy with a handle, cleaning chemical supplies, detergents, and soaps.
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Transportation
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Manager – $38,000 per year
- Accountant/Cashier – $35,0000
- Marketing and Sales Officer – $35,000 per year
- Cleaners – $26,000 per year
- Security Officers – $24,150 per year
g. How Do You Get Funding to Start Vacation Rental Cleaning Business
- Raising money from personal savings and sale of personal stocks and properties
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Double Clean® Vacation Rental Cleaning Services, LLC is a licensed and registered vacation rental cleaning company that will be located in Silver Spring, Maryland but will have an active presence all across cities in the United States.
Double Clean® Vacation Rental Cleaning Services, LLC is equipped to offer vacation rental cleaning services that are designed to prepare vacation rental properties for renters in a fast, efficient, and thorough manner.
b. Products and Service
Offering professional cleaning services specifically for vacation rental facilities.
c. Mission Statement
Our mission is to establish a vacation rental cleaning business that will provide top-notch vacation rental cleaning services. We will do it with eco-friendly and biodegradable products and tools that are free of toxic chemicals and are safe for pets and children.
Vision Statement
Our vision is to establish a standard vacation rental cleaning business that will become one of the leading brands in the United States of America.
d. Goals and Objectives
The goals and objectives of the vacation rental cleaning business are to provide professional cleaning services for short stay accommodations such as holiday villas, apartments, cottages, condominiums, townhomes et al.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Manager
- Accountant/Cashier
- Marketing and Sales Officer
- Cleaners
- Security Officers
Marketing Plan
a. SWOT Analysis
Strength:
- Ideal Location for vacation rental cleaning company
- Highly experienced and qualified employees and management
- Wide network of vacation rental property owners
- We make use of eco-friendly and biodegradable products that are free of toxic chemicals and are safe for pets and children.
Weakness:
- Financial constraints
- A new business that will be competing with well-established vacation rental cleaning companies and janitorial services in the city.
- Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.
Opportunities:
- A rise in the number of vacation rental properties
- The high cost of hotel fees will push people to rent vacation homes
- Online market, new services, new technology, and of course the starting of new markets.
Threat:
- The arrival of a new vacation rental cleaning business within our market space
- Low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems
- The government could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
b. How Do Vacation Rental Cleaning Companies Make Money?
Vacation rental cleaning companies make money by offering professional cleaning services for vacation rental properties.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your vacation rental cleaning business by sending introductory letters alongside your brochure to vacation rental facility operators and other key stakeholders throughout the city where your vacation rental cleaning business is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your products.
- Advertise your business in travel and tour magazines, community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
Financial Projection
a. How Much Should You Charge for your Service?
The amount vacation rental cleaning companies charge their clients depends on the type of facility, the number of rooms, and the additional services rendered.
The cost of a vacation rental cleaning in top U.S. cities ranged from $38.85 at the lowest and $89.13 at the highest for a 1-bedroom rental apartment, according to TurnoverBnB’s 2022 Quarter 2 report. The average two-bedroom rate was $72.11, and three-bedroom cleaning averages slightly above $100.
b. How Much Profit Do Vacation Rental Cleaning Business Owners Make a Year?
It depends, but available reports show that on average, a small to medium-sized vacation rental cleaning business can earn anywhere from $55,000 to $80,000 and more for the vacation rental cleaning business owner.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the vacation rental cleaning business
- The types of additional services offered
- The locations of the vacation rental cleaning business
- The management style of the vacation rental cleaning business
- The advertising and marketing strategies adopted by the vacation rental cleaning business.
- The number of years the vacation rental cleaning business is in business
d. What is the Profit Margin of a Vacation Rental Cleaning Business?
The profit margin of a vacation rental cleaning business is not fixed. It could range from 25 percent to 55 percent depending on some unique factors.
e. What is the Sales Forecast?
Below is the sales forecast of a vacation rental cleaning business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $360,000
- Third Fiscal Year (FY3): $480,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for a Vacation Rental Cleaning Business?
- The demography of the location
- Accessibility of the location
- The number of vacation rental cleaning companies in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Start a Vacation Rental Cleaning Business?
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- Oak Lawn, Illinois
- Green Bay, Wisconsin
- New York City, New York
- Las Vegas, Nevada
- Los Angeles, California
- Ponte Vedra Beach, Florida
- Dallas, Texas
c. What Equipment is Needed to Operate a Vacation Rental Cleaning Business?
You would need working tools and equipment like; jet snakes, brushes, industrial vacuums, dry clothes for cleaning, brooms, dust masks, safety shoes, an overalls vacuum cleaner with attachments, bowl cleaner, brooms, dustpan & brush, dry mop, wet mop & bucket, latex gloves, wet floor signs, extension cord, disinfectant cleaner, soft scrub, high duster, caddy with a handle to keep your supplies in, and a truck.
Hire Employees
When it comes to hiring employees for a standard vacation rental cleaning business, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, accountant, cleaners, and security guards.
Launch the Business Proper
The best way to launch your vacation rental cleaning service is to engage in massive publicity for the business. While hosting an opening party is good, but if the finances used for the party are employed in other publicity avenues, it would yield better results for the business.
a. What Makes Vacation Rental Cleaning Business Successful?
- Choose good locations to launch the business
- Make sure your partner with key stakeholders and offer a wide range of cleaning services
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your vacation rental cleaning business
- Leverage all available online and offline platforms to promote your vacation rental cleaning business
b. What Happens During a Typical Day at a Vacation Rental Cleaning Business?
- The business is open for the day
- Staff resume and are deployed to locations (vacation rental facilities)
- Administrative work is done concurrently
- The cleaners and other staff members execute their job descriptions in location (vacation rental facilities)
- Stocking of cleaning and other supplies are done
- The office is administratively closed for the day.
c. What Skills and Experience Do You Need to Build a Vacation Rental Cleaning Business?
- Excellent janitorial and cleaning skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in the janitorial services industry
- Experience in managing people
- Experience in business administration
- Experience in handling different types of cleaning chemicals and tools.