The property management landscape has transformed dramatically, with foreclosure filings totaling 322,103 properties in 2024, representing 0.23% of all U.S. housing units. Meanwhile, the global move-out cleaning services market was valued at approximately $12 billion in 2023 and is expected to reach around $20 billion by 2032. For property managers, real estate investors, and financial institutions, understanding the critical importance of quick turnover services has never been more crucial.
The Current State of Foreclosure and Rental Markets
Foreclosure Market Overview
The foreclosure market continues to present significant opportunities despite declining numbers. Foreclosure filings in 2024 were down 89% from a peak of nearly 2.9 million in 2010, yet “The continued decline in foreclosure activity throughout 2024 suggests a housing market that may be stabilizing,” according to Rob Barber, CEO at ATTOM.
Key Foreclosure Statistics for 2024:
- The foreclosure rate in 2024 was 0.23% of all housing units
- California led with 29,529 foreclosure starts, followed by Florida (29,239) and Texas (28,946)
- Florida had the highest foreclosure rate with 1 in every 267 housing units
- Bank repossessions totaled 36,505 properties in 2024, down 13% from 2023
Rental Turnover Market Dynamics
The rental market faces its own challenges with turnover rates that significantly impact property profitability. The national average apartment retention rate hovers between 50-58%, indicating an average apartment turnover rate of 42-50%. The average time a rental property stays on the market is 23 days, making quick turnovers essential for maintaining cash flow.
Critical Turnover Statistics:
- The average cost of tenant turnover is about $1,750
- Investors working with property managers reported shorter vacancy windows (4 weeks versus 4.6 weeks)
- In most cases, the turnover process lasts at least 2 weeks
The Growing Cleaning Services Market
The cleaning industry has experienced unprecedented growth, driven by increased hygiene awareness and post-pandemic cleaning standards. The global cleaning services market was estimated at USD 415.93 billion in 2024 and is projected to reach USD 616.98 billion by 2030, growing at a CAGR of 6.9%.
Market Growth Drivers
The increased emphasis on hygiene and cleanliness, significantly influenced by the COVID-19 pandemic, has driven businesses to embrace advanced cleaning technologies. North America holds a 32.20% global revenue share, with the U.S. market expected to grow at a CAGR of 5.6%.
Specialized Cleaning Market Insights:
- High rental turnover rates and rising short-term rental demand drive increased need for move-out cleaning services
- Deep cleaning hourly rates increased from $25-30 pre-pandemic to $55-65 per hour
- Residential house cleaning approaches $20 billion in annual sales with a projected 20% annual growth rate
Why Quick Turnovers Are Critical
Financial Impact
Property vacancy costs extend far beyond lost rental income. Quick turnover times are important for property owners to avoid loss of income, as vacant properties result in lost rental income. The longer a turnover takes, the more rental income you forgo.
Hidden Turnover Costs Include:
- Lost rental income during vacancy periods
- Increased utility and maintenance expenses
- Cleaning, possible repainting, and re-carpeting costs
- Marketing and showing expenses
- Time spent screening new tenants
Market Competitiveness
The cleaner and fresher-smelling the property is, the more likely it will be leased quickly, which is what every property owner and manager wants. In competitive markets, properties that can be turned over quickly maintain higher occupancy rates and command better rents.
Essential Quick Service Categories
Professional Foreclosure Cleanout Services
Foreclosure properties present unique challenges requiring specialized approaches. The most efficient way to do a full foreclosure cleanout is to hire a professional property cleanout crew with foreclosure cleanout experience.
Foreclosure Cleanout Considerations:
- Homes are often in very bad condition, with angry previous owners sometimes damaging physical elements
- Properties may have TVs left on, food in refrigerators, and abandoned animals
- Deliberate damage including broken windows and removed hardware is common
Rental Turnover Cleaning Services
Professional rental turnover cleaning differs significantly from regular residential cleaning. Turnover cleaning involves thorough cleanup after tenant move-out and before new tenant move-in, more intensive than general cleanings.
Turnover Cleaning Scope:
- Deep kitchen and bathroom sanitization
- Interior and exterior window cleaning
- Carpet cleaning or replacement assessment
- Paint touch-ups and wall repairs
- HVAC filter replacement and system checks
- Floor refinishing and maintenance
Specialized Property Services
Maintenance and Repairs:
- Common tasks include replacing burned-out bulbs, changing HVAC filters, and testing emergency equipment
- Plumbing and electrical system inspections
- Security system updates and key changes
Pricing Strategies:
Professional services employ various pricing models. Industry pricing varies based on property size, complexity, and volume of debris, with some companies charging flat rates after assessing variables.
Example pricing from market research:
- Linen service starting at $20 per turnover, deep cleaning at $40/hour starting rate
- Cleanup and removal of 5-6 cubic yards of debris: approximately $700
Best Practices for Quick Property Turnovers
Pre-Turnover Planning
Working with a standard make-ready process allows you to go over every detail and handle the process step-by-step. Determine which tasks you can handle yourself versus those requiring professional services, and schedule professional services well in advance.
Technology Integration
Leveraging technology simplifies and expedites turnover processes, with property management software helping track maintenance requests and schedule professional services. AI technology adoption is accelerating, with 34% of property management professionals currently using AI, up from 21% last year.
Quality Control and Documentation
Thorough documentation protects all parties and ensures quality standards. Document damage, check for wear and tear, look for pest infestations, and keep detailed records with photographs.
Selecting the Right Service Providers
Vetting Professional Services
When choosing turnover service providers, consider these critical factors:
Experience and Specialization:
- Select providers with specific experience in foreclosure cleanouts, as this requires different skills than other cleanout services
- Verify licensing, insurance, and bonding status
- Check services, fees, policies, and online customer reviews
Service Capabilities:
- Look for comprehensive services including deep cleaning, minor repairs, and hauling of large items
- Ensure proper disposal capabilities, including partnerships with charities and recycling centers for hazardous materials
Building Vendor Networks
Line up service providers including trash haulers, cleaning services, locksmiths, and handymen before seeking business. Establish relationships with multiple vendors in each category to ensure availability and competitive pricing.
Industry Trends and Future Outlook
Market Growth Projections
The property management industry shows strong growth indicators. Industry projections indicate the property management sector will be worth $123.502 billion in 2025, up from $119.1 billion in 2024. The broader cleaning services market shows robust growth at USD 415.93 billion in 2024, expected to grow at 6.9% from 2025 to 2030.
Technology Adoption
Improving efficiency continues to be the benefit that property management professionals are most excited about regarding technology adoption. Technology adoption stands out among defining property management trends for 2025, with efficiency ranking as companies’ second-highest priority.
Labor Market Challenges
The industry faces ongoing staffing challenges. Employee turnover for on-site multifamily property management teams is usually around 30-50%, higher than other industries. Property management sees higher-than-average turnover rates due to demanding schedules and continued demands for higher wages.
Cost-Benefit Analysis of Quick Services
ROI Calculations
Investing in professional quick services typically pays dividends through:
Reduced Vacancy Periods:
- Minimizing turnover times ensures disruption in rental income is insignificant
- Faster market readiness leads to quicker tenant placement
- Higher occupancy rates improve overall property performance
Quality and Compliance:
- Established professional businesses stand behind their work with guaranteed results
- Professional services provide equipment, staff, and expertise for highest service levels
Long-term Benefits
Professional turnover services enhance property value and ensure positive tenant experiences, leading to longer occupancy periods and positive reviews. Professional services support faster turnaround, facilitate safer transactions, and contribute to sustainable practices.
Environmental and Sustainability Considerations
Modern property turnover services increasingly emphasize environmental responsibility. Prioritizing recycling and proper disposal practices contributes to protecting the environment and ensuring minimal waste ends up in landfills.
Sustainable Practices Include:
- Donation of usable items to local charities
- Proper recycling of electronics and hazardous materials
- Use of eco-friendly cleaning products
- Growing preference for eco-friendly, sustainable cleaning products in North America
Regional Market Variations
High-Activity Markets
Metropolitan areas with highest foreclosure activity include New York (15,327 starts), Chicago (11,508), and Houston (10,197). These markets typically offer more opportunities for specialized turnover services but also increased competition.
Emerging Markets
The Asia Pacific region expects the highest growth rate at approximately 8% CAGR, with rapid urbanization in China and India driving demand. However, North America holds the largest market share due to high rental turnover rates and widespread acceptance of professional cleaning services.
Implementation Strategies for Property Managers
Developing Service Protocols
Create standardized procedures for different property types and conditions:
- Assessment Phase: Professional assessment before any work begins
- Planning Phase: Careful layout of work needed per room and waste disposal strategies
- Execution Phase: Coordinate multiple service providers efficiently
- Quality Control: Final inspection and documentation
Building Strategic Partnerships
By presenting yourself as a reliable partner in the foreclosure cleanout process, you become a valued asset to property managers and landlords. Establish preferred vendor relationships for consistent service quality and pricing.
Conclusion
The foreclosure and rental turnover service industry presents significant opportunities in 2024-2025, driven by market dynamics, technological advancement, and changing property management needs. With foreclosure filings totaling over 322,000 properties and apartment turnover rates of 42-50%, demand for professional quick services remains strong.
Success in this market requires understanding the unique challenges of both foreclosure and rental properties, building strong vendor networks, and leveraging technology for efficiency. Focus on finding quality, long-term solutions while investing in comprehensive platforms that combine automation with robust security features.
Property managers, investors, and service providers who embrace these trends and implement best practices will be well-positioned to capitalize on the growing demand for professional turnover services. The key lies in balancing speed with quality, technology with personal service, and cost-effectiveness with comprehensive solutions.
As the industry continues evolving, those who adapt quickly to market demands while maintaining high service standards will thrive in this essential segment of the property management ecosystem.
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