Property Preservation Checklist for Vacant and REO Properties
Property preservation protects the value of vacant, bank-owned (REO), and foreclosed properties while ensuring compliance with investor and regulatory requirements. This checklist covers everything servicers, asset managers, and lenders need to maintain vacant properties.
What Is Property Preservation?
Property preservation is the process of securing, maintaining, and protecting vacant real estate assets. It includes initial securing, ongoing maintenance, winterization, and compliance with investor guidelines (Fannie Mae, Freddie Mac, FHA, VA) and municipal codes.
Initial Securing Checklist (Within 7 Days of Vacancy)
Property Access
- Confirm property is vacant (occupancy verification)
- Remove all personal belongings and debris (if legally permissible)
- Remove trash and hazardous materials
- Document property condition with date-stamped photos
Securing the Property
- Change all exterior door locks (install lockbox with code)
- Secure all windows (board if broken)
- Install deadbolt locks on all exterior doors
- Secure sliding glass doors with auxiliary locks or bars
- Secure outbuildings, sheds, and garages
Utilities
- Contact utility companies to transfer to property preservation company name
- Verify electricity is on (for sump pumps, security lighting)
- Turn off main water supply if winterizing
- Shut off gas at the meter
- Set thermostats to 55°F minimum (if utilities active)
Winterization Checklist (Seasonal — October through April)
Plumbing Winterization
- Turn off main water supply
- Drain all water lines (open all faucets)
- Blow out lines with air compressor
- Add antifreeze to all P-traps (sinks, tubs, showers, toilets)
- Drain and disconnect water heater
- Drain toilet tanks and bowls; add antifreeze
- Drain outdoor hose bibs and irrigation systems
Heating System
- Shut down heating system per manufacturer guidelines
- Drain boiler systems
- Add antifreeze to hydronic systems (if used)
- Remove window AC units or winterize through-wall units
Ongoing Maintenance Checklist
Monthly
- Exterior inspection (condition photos)
- Check for signs of vandalism or break-in
- Verify locks and boarding are intact
- Check for water intrusion (roof leaks, plumbing)
- Inspect yard for overgrowth
- Verify utilities are still active or properly winterized
- Remove accumulated mail, flyers, or newspapers
Lawn and Landscape (April through October)
- Mow lawn every 2–4 weeks (maintain under 6 inches)
- Trim bushes and shrubs
- Remove weeds from beds and walkways
- Remove fallen branches and debris
Snow Removal (November through March)
- Shovel sidewalks and driveways after snowfall
- Apply ice melt to walkways
- Ensure mailboxes and fire hydrants are accessible
Investor Compliance Requirements
Fannie Mae Requirements
- Initial securing within 7 days of vacancy
- Winterization by October 31 (cold weather states)
- Lawn maintenance every 2–4 weeks
- Monthly interior/exterior inspections
- Photo documentation of all services
Freddie Mac Requirements
- Similar to Fannie Mae with specific winterization deadlines
- Required to use approved vendor network
- Lawn height not to exceed 6 inches
FHA/VA Requirements
- Properties must meet minimum property standards
- Winterization required per HUD guidelines
Common Property Preservation Problems
Vandalism and Theft
- Copper theft from plumbing and AC units
- Broken windows and forced entry
- Graffiti and vandalism Prevention: Install security lighting, alarm systems, or surveillance cameras.
Squatters
- Unauthorized occupants moving into vacant properties
- Can be difficult and time-consuming to remove legally Prevention: Regular inspections, visible securing, neighbor notification.
Code Violations
- Overgrown lawns leading to fines
- Accumulated debris or trash
- Peeling paint or exterior deterioration Prevention: Maintain regular maintenance schedule, respond to code violation notices immediately.
Property Preservation Cost Guide
| Service | Typical Cost | |--------|-------------| | Initial securing (lock change, trash out) | $300–$800 | | Full winterization | $350–$700 | | Monthly inspection | $50–$100 | | Lawn maintenance (per visit) | $50–$150 | | Snow removal (per visit) | $75–$200 | | Board up (per window) | $50–$150 | | Roof tarp (temporary) | $300–$800 |
How Auxi Services Can Help
Auxi Services provides comprehensive property preservation services nationwide including initial securing within 48–72 hours, full winterization per investor guidelines, monthly inspections with photo documentation, lawn maintenance and snow removal, compliance with Fannie Mae, Freddie Mac, FHA, and VA requirements, and 24/7 emergency response. Contact Auxi Services for property preservation services for your vacant or REO portfolio.