Home Cleaning Business Overview
A home cleaning business provides homeowners and renters with professional cleaning and sanitization services. House cleaners may also offer their services to apartment owners or AirBnB properties that need to be cleaned between tenants. These professionals maintain homes through tasks like dusting, vacuuming, mopping, bathroom cleaning, kitchen sanitization, and general tidying.
Most cleaning businesses start by offering general cleaning services and build their client base through regular repeat customers who schedule services weekly, bi-weekly, or monthly. Many cleaning business owners begin as solo operators and expand by hiring additional staff as their client base grows.
The most common business models in residential cleaning include:
- Independent Cleaner: A self-employed individual who works directly with clients to provide personalized cleaning services
- Small Cleaning Team: A business with 2-5 employees who can handle multiple properties each day
- Multi-Team Operation: A larger company employing several cleaning teams to serve more clients across different areas
- Specialized Service Provider: A business focusing on particular cleaning services like deep cleaning, move-in/move-out cleaning, or eco-friendly cleaning
Related: Checklist To Start A Business
How Do Residential Cleaning Businesses Make Money?
Residential cleaning businesses earn their primary income through recurring service agreements with homeowners and renters. Most companies set their pricing using square footage calculations or hourly rates, with average service visits lasting between 2 and 4 hours. Pricing typically includes basic supplies and equipment, though some businesses charge extra for specialty cleaning products.
Additional revenue sources for residential cleaning businesses include:
- Deep Cleaning Services: One-time thorough cleanings for special occasions or seasonal maintenance, often charging premium rates due to the extra time and effort required
- Specialized Floor Care: Additional services for carpet cleaning, hardwood floor maintenance, or tile and grout cleaning
- Window Cleaning: Interior and exterior window washing services as add-ons to regular cleaning packages
- Move In/Out Services: Comprehensive cleaning services for people moving into or out of homes, including cleaning inside cabinets, appliances, and detailed surface cleaning
- Organization Services: Help with decluttering, organizing closets, and arranging spaces while performing cleaning duties
Industry Statistics
Residential cleaning services fall under NAICS code 561720 – Janitorial Services, which includes maid services and house cleaning operations. Here are some interesting numbers about the residential cleaning industry.
Residential Cleaning Industry Size & Growth: The residential cleaning industry generated $18.8 billion in revenue last year. The industry has grown by 3.2% annually over the past five years. Growth is expected to grow by 6.2% through 2027 as more households with incomes over $100,000 hire cleaning services. Rising disposable income and busier lifestyles among homeowners suggest continued expansion in the years ahead. (IBISWorld)
Number of Residential Cleaning Businesses: There are approximately 357,000 residential cleaning businesses operating nationwide. The industry primarily consists of small businesses and independent operators, with no single company controlling a significant portion of the market. This creates opportunities for new businesses to enter and establish themselves in local markets. (IBISWorld)
Residential Cleaning Profit Margin: Cleaning businesses typically maintain profit margins between 10% and 28% of revenue. Labor costs represent the largest expense for these operations, followed by cleaning supplies and equipment. (IRS)
States with Most Residential Cleaning Businesses: California, Texas, Florida, and New York have the highest concentration of residential cleaning businesses. These states have large populations and many high-income households that regularly use cleaning services. (U.S. Census Bureau)
Startup Stories
Costs To Start a Residential Cleaning Business
Starting a residential cleaning business typically costs between $1,500 and $6,000. The lower end represents basic equipment and supplies for a solo operator, while the higher end includes professional equipment and liability insurance for a small team.
There are several expenses to start a cleaning business, but here are some of the more expensive items to plan for:
Equipment and Supplies: A professional cleaning business needs vacuum cleaners, mops, brooms, buckets, cleaning solutions, disinfectants, cloths, and sponges. For a one-person operation, initial equipment costs range from $500 to $2,500. Higher-end commercial-grade equipment lasts longer and cleans more effectively but costs more upfront.
Insurance: Professional liability insurance and bonding protection safeguards against accidents, damage, or theft while working in clients’ homes. Insurance costs typically range from $500 to $1,500 annually, depending on coverage levels and number of employees.
Uniforms and Safety Equipment: Professional uniforms, gloves, masks, and safety equipment help present a professional image and protect workers. Initial costs for these items typically range from $200 to $500.
Marketing and Advertising: Initial marketing efforts to establish the business could cost between $500 to $3,000. This includes creating a basic website, business cards, local advertising, and potential online marketing strategies to attract initial clients.
Software and Booking Systems: For more advanced operations, investing in business management software could range from $200 to $1,000. Higher-end businesses might opt for comprehensive booking and customer management systems that offer advanced features like online scheduling and client tracking.
These estimates provide a general idea of startup costs, but actual expenses will vary.