You’re thinking of starting a mold remediation service, but you are wondering just how much it will cost you. Luckily, mold remediation is one of the less expensive ventures to get into. I have made a price list of essentials you’ll need to get started, so read on for a general idea of what you need and about how much it will cost.
It should cost about $50,000 to start a mold remediation service. Factors that will affect this cost include cost of work vehicle, cost of insurance, location of business, prices of desired remediation equipment, quantity of equipment, and cost of building rental.
In the list, I will give you the item and its cost, tell the function it serves, and tell why you need it for your mold remediation business. Now, let’s have a look at the numbers.
Acquire a mold remediation contractor license, if necessary
Contractor License Fee, $250-$550
Most states don’t require a mold remediation contractor license, but you should double-check your state’s requirements to be sure, as regulations change. Currently, Texas, Florida, Louisiana, Tennessee, and District of Columbia require a mold remediation contractor license for those who provide this service. Florida and Louisiana contractor license fees aren’t readily available, but the other states’ fees range from $250-$450.
Some states also require a mold remediation company license as well, so check with your state’s department of licensing and regulation to see if that applies to your business.
Purchase Insurance
General Liability Insurance, $42 per month
General liability insurance will protect your mold remediation business from third-party claims of property damage or injury. A client tripping over a piece of equipment or a work ladder damaging a client’s wall are very plausible situations for mold remediation work.
Because you will be working with property belonging to clients, and because you’ll be working in close proximity to your clients at times, general liability insurance is recommended.
According to small business insurance marketplace Insureon, the average cost of general liability insurance is $42 per month.
Worker Compensation Insurance, $47 per month
Sometimes working around mold can be hazardous to one’s health. Worker compensation insurance will assure that your employees’ lost wages and medical costs related to on-the-job injuries or work-related illnesses are covered. Insureon says the average cost of worker compensation insurance is $47 per month.
Commercial Auto Insurance, $142 per month
You’ll have a dedicated vehicle for your mold remediation service, and you’ll need to have repairs made quickly or have access to a loaner vehicle so you can keep on schedule. Commercial auto insurance can cover expenses that regular auto insurance doesn’t. Insureon says the median cost of commercial auto insurance is $142 per month, or $1,704 per year.
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Commercial Property Insurance, $63 per month
You may not need a commercial building at this stage in your business, but if you plan on renting a building for your business to house equipment, the purchase of commercial property insurance is a good idea. In the event of a burglary, vandalism, or building fire, the equipment you use every day is covered. Insureon puts the cost of commercial property insurance at $63 per month, on average.
Equipment
It’s a good idea to research different types of mold remediation equipment to make the best choice for your business. I have given the prices for commercial equipment when applicable. It’s important to use professional equipment to do the job right so you can avoid unhappy customers or legal action.
Commercial Dehumidifier, $2,500
Commercial dehumidifiers are needed to hasten the drying process in large areas where flooding, natural disasters, or leaks have occurred. They are very effective, each removing 150-200 pints of water per day!
150-pint dehumidifiers are good for spaces like garages and basements, 8,500 square feet or less. 200-pint dehumidifiers are good for spaces such as offices and gyms, up to 11,500 square feet. 250-pint dehumidifiers are for very large spaces, such as grocery stores, schools, and hospitals 15,500 square feet or less.
Commercial Thermo-hygrometer, $2,300
Thermo-hygrometers are necessary to determine relative humidity levels of each room, and to help identify which rooms have higher than normal humidity for the structure. The spaces with higher humidity are likely to contain the source of the water intrusion. This is the first step to zeroing in on the mold source.
Take care with the sensor of the thermo-hygrometer as it is susceptible to contamination; once the sensor is contaminated, the thermos-hygrometer not repairable and must be replaced.
Commercial Moisture Meter (Pinless), $550
After determining the spaces with higher than normal moisture, it’s time to find the waterlogged building material. Pinless moisture meters find which building materials have excess moisture and likely harbor mold.
Air Scrubber, $1,200
Air scrubbers are machines that pass air through a series of filters—primary, secondary, and HEPA, with each filter designed to remove a different type of particulate, including mold spores. You’ll need this heavy-duty air cleaner to remove mold spores released during cleaning, and to remove excess chemicals from the air once treatment is complete. Some models feature UV radiation for extra sanitation.
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Chemical Applicator, $160 each
Mold treatment applicators are necessary to spray the various chemicals needed to kill mold, deodorize surfaces, and prevent mold regrowth. Applicators come in all sizes and configurations, and include handheld applicators, backpack applicators, and applicators on wheels.
Consider hand pump sprayers for application rather than finger trigger sprayers. Unlike finger trigger sprayers, hand pump sprayers will give better precision with a more continuous pneumatic spray, reduce finger fatigue and minimize the risk of repetitive use injury.
Miscellaneous Tools, $500
Leave room in your budget for essential odds and ends, like buckets, measuring tape, towels, knee pads and other incidentals you may not have thought of.
Thermal Imaging Camera, $500-$2,500
Thermal imaging cameras are essential for mold remediation. These cameras reveal the damp building material by generating a thermal picture of the temperature of the building material relative to the surrounding area. Damp building material displays a different color image than dry, letting contractors “see” behind the material to find the moisture and the building materials damaged by it.
Air Mover, $250 each
Air movers are powerful fans that are used to increase the airflow to an area. It’s important not to use an air mover during the treatment process to avoid the spread of spores, but they’re still an essential– for use either before mold growth can occur to a water-damaged property, or after mold remediation is complete to help dry the excess moisture that caused the mold.
Chemicals, $400/month
There are various chemicals used in mold treatment– disinfectants, deodorizers and mold regrowth inhibitors are all used in mold remediation. These chemicals are sold by the gallon but look for the 4-gallon options to get the better price.
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Personal Protective Equipment, $2,800
While mold isn’t always toxic, you can’t be sure just what you’re dealing with until it’s tested. That’s why it’s smart to play it safe and wear personal protective equipment as recommended by the EPA. Being exposed to any mold during the cleaning process can cause eye, nose and throat irritation. Additionally, the chemicals used in mold treatment can be unhealthy to breathe every day. Below is the breakdown of PPE costs for the first few months of your business.
- TYVEK Suit $2,000/20
- 3M Mold Respirator $600/20
- Goggles $100/10
- Gloves $50/600
- Shoe Covers $50/200
Warehouse or Office Space $1,400-$3,500 per month
If you want to have a warehouse or office space to start your mold remediation service, it will add a lot of recurring expense. According to business cost site CostHack, “You should budget about $15 per square foot for an office and about $5 per square foot for a warehouse. On average, you can expect to spend $1,400 per month for an office and $3,500 per month for a warehouse.”
Work Vehicle, $32,000-$60,000 (+$100 per month maintenance)
You’ll need a reliable vehicle to complete your tasks on time. A good, medium-sized used truck will cost about $32,000, according to CostHack. If you want a brand-new commercial truck, expect to pay $25,000 more (around $55,000-$60,000). Plan for an average monthly maintenance cost of $100.
Marketing, $1,000
Establishing your brand as a mold remediation contractor will mean promoting your business with professionalism. Expect to hire a graphic designer to create your official logo, then use your logo on your uniform, on flyers, in advertising, and for your work vehicle decals.
If you want to have a website for your business, CostHack says you will pay anywhere from $500 for a basic build (to $3,500 for a site with all the bells and whistles).
With mold remediation service being a relatively affordable business to start, and with the industry seeing no signs of slowing down, there’s never been a better time to get into the business!
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Frequently Asked Questions
How much would it cost to add an employee to my mold remediation service?
Adding an employee to your mold remediation service will cost about $3,500 per month, in addition to matching social security, payroll taxes, and providing unemployment insurance.
How do I market my mold remediation service?
Aside from paper and online advertising, get a booth at trade shows and home and garden shows. Partner with home remodelers so you can refer clients to each other’s services.
To learn more on how to plan your own mold remediation business click here!
Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.
About the author. A lifetime of Entrepreneurship.
Hi! My name is Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop (link here http://archives.starbulletin.com/2003/05/18/business/index.html) to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet new business owner, I see myself. I know how hard the struggle is to obtain and retain clients, finding good employees and making sure everything works together all while trying to stay competitive.