HUD Guidelines for Property Preservation

Property preservation for the U.

Facts

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S. Department of Housing and Urban Development (HUD) offers an excellent business opportunity for the aspiring entrepreneur. The property preservation business is responsible for maintaining homes that are foreclosed or about to be foreclosed. Property preservers do everything from inspecting properties and boarding them up to managing all of the permits that are required. By working in conjunction with HUD guidelines, business owners can engage in a line of work that is valuable for the HUD and offers a necessary service for communities.

Any business owner who decides to begin the process of property preservation for HUD must first begin by paying the fee for the registration of each property. Fortunately, this can and will be reimbursed with the proper paperwork. Once the registration is completed, the property preserver must then focus on inspecting the property and contacting contractors for any necessary repairs. Additionally, property preservers are responsible for ensuring that the property is in the correct condition to sit uninhabited for any length of time, taking whatever steps are essential to prepare the property for various climate conditions.

Significance

The property preserver completes a highly useful role within communities, because foreclosed properties are, sadly, an inevitability. And the properties must be managed and preserved for future buyers. Properties that sit unmanaged will rapidly develop any number of problems, from leaking pipes to mold growth.

Geography

A property preserver's geographic business is limited only to what the business owner can manage. Some property preservers focus specifically on a limited area: a small community, for example, or an area spanning several cities. Others focus their business across state lines and manage foreclosures in five or more states. This is completely legal, although the business owner must take the different state requirements into account and also work with contractors in each state. It is up to the property preserver to work out all of the details.

Considerations

Working as a property preserver according to HUD guidelines will require an initial fee, so you will need to have the capital to begin this line of work. Additionally, bear in mind that you will be working largely with contractors and that payment will depend on the activities of the contractors.

Warning

Property preservers absolutely must verify all permits and fees before beginning their work. Failing to do so will likely result in multiple and very costly lawsuits, so they should be sure to take the time to learn the rules and requirements in advance of beginning the work of preserving any property. Additionally, be forewarned that HUD has a limit to costs that it will reimburse per property, so don't spend more than you can receive for reimbursement.

About the Author

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.