How to Start a House Clearance Business

Starting a house clearance company can be incredibly lucrative as you can build up a strong customer base. There are many reasons why people require house clearances, meaning that it is a service that is consistently in demand.

You can offer many services within house clearance, allowing you to pick and choose what kind of clearance jobs you want to take on. It’s essential that you arrange the appropriate documentation and licenses before you proceed.

We delve into how you can set up a house clearance company, including a step-by-step guide. We also discuss how you can make money and the pros and cons of starting a house-clearance business.

Starting a House Clearance Business

You will need to carry out the appropriate registrations and ensure that all the correct paperwork is in order. Failure to do so can incur hefty fines and legal action taken against you.

Here is a step-by-step guide to starting your house clearance business:

Register with the HMRC

You will have to register with the HMRC before proceeding with your business venture. There are different forms depending on what kind of business you wish to register as. You can choose between operating as a Sole Trader, a Limited Company, or a Partnership.

Apply for a Waste Carriers Licence and Public Liability

All house clearance companies must apply for a Waste Carriers Licence. This helps to avoid any fly-tipping and minimizes the amount of waste sent to landfill. Bear in mind that the application process is different in each part of the UK. The Waste Carrier Licence is authorized by the following regulatory bodies:

• England – Environment Agency
• Wales – Natural Resources
• Scotland – SEPA
• Northern Ireland – Department of Agricultural, Environment, and Rural Affairs

You should also consider investing in Public Liability insurance. This covers the cost of any damage or injury that occurs on the job. While this is not compulsory, it adds an extra level of security and assurance for both the business and the customer base.

Look at Vehicles and Van Insurance

If you don’t already have a vehicle, you’ll have to look into renting or buying one. The size of your vehicle will determine what size clearances you can carry out. For example, if you purchase a smaller van, you may be restricted when it comes to large house clearances. However, a Luton van will be suitable for the majority of clearance tasks.

Once you’ve sourced your vehicle, you will need to take out Van Insurance For Hire and Reward. This is the insurance package required for those who are using transport as part of a profitable business. This ensures that the vehicle is covered when moving the items from the property to their final destinations.

Purchase Commercial Equipment and Tools

You’ll need to purchase equipment and tools that are up to industry standards. This can include trollies for moving heavy and large items such as furniture and white goods. Some clearance companies may also provide packing supplies to store any items that are going to be donated or sold.

It can also be beneficial to invest in a uniform. This will offer a professional appearance and provide a positive first impression. Choosing a uniform that is made of quality materials to endure any condition will save you a lot of stress and hassle in the long term. Clearance teams will also need a pair of thick gloves for the colder months and for safety.

House clearances can be dangerous when dealing with extreme cases that involve hazardous waste. Therefore, it’s best to invest in quality Personal Protective Equipment (PPE) to protect you and your employees.

Create a Website and Business Social Media Accounts

Having an online presence is a great way to reach out to the areas you plan to operate in. You should state your company ethos, the services you offer, and contact details. This will give your business credibility.

Another additional option is to set up social media accounts for your business. If you plan on operating locally, setting up a Facebook Business page is a great way to establish a presence and grow your client base. You can offer promotions through your social media to encourage people to use your services.

You can encourage friends and family to share your website which in turn will strengthen your business presence in the area. You can also invest money into paid ads. These will target people who require clearance services.

Can You Make Money From House Clearances?

House clearance businesses can be extremely rewarding thanks to the high demand. It can take a while to grow your customer base as you increase your experience and presence. However, many clearance companies that develop a positive reputation are able to thrive.

On average, small to large house clearances can cost between £325 and £595, according to Check a Trade. The cost is often dependent on the volume of goods and the type of items in the clearance. 

Here are some additional ways that clearance companies can make money:

Recycling

There are some recycling centers that offer payments. This is dependent on the goods being recycled and how much there is. It’s best to check your local recycling center to see if there are any payment offerings available.

Selling Valuables

One of the most popular routes for additional money is selling valuables cleared from the property. Some clearance companies work with local auction houses and will deduct any profit from the final billing cost.

Having experience dealing with valuable goods can contribute to developing a positive reputation. It also gives you the chance to create relationships with other businesses and build local trust.

Pros and Cons of Starting a House Clearance Business

As with any business prospect, there are pros and cons that you need to consider before proceeding. This ensures that you are prepared for any scenario and will have a higher chance of success.

Advantages

Owning a company means that you will be your own boss. You can choose your own work schedule and decide what services you will offer.

Compared to other industries, clearance businesses have fewer overheads to worry about. This means that it can take less time to make a profit. To minimize the financial risk, you could start the business part-time while working in your current job.

Disadvantages

The house clearance industry can be extremely competitive. You should research companies that are currently operating in your area and determine what makes your business stand out.

It’s very likely that you’ll come across hazardous waste during your career. In these instances, it’s crucial that you are wearing PPE to prevent any damage or injury. If you plan on taking on cases with hazardous waste, you will probably have to charge more as it requires extra steps to handle and dispose of these goods.

You’ll also be responsible for handling important paperwork and other documentation including taxes associated with self-employment. This can be overwhelming if you don’t have prior business experience.