Residential cleaning costs $500 to $2,000 to start and serves homeowners. Commercial cleaning costs $5,000 to $15,000 to start and serves businesses. Residential gives you faster client growth and flexible hours. Commercial gives you bigger contracts and steadier income.
What Is the Difference Between Residential and Commercial Cleaning?
The cleaning industry has two very different business types. Residential means cleaning homes. Commercial means cleaning offices, buildings, and other work spaces. Both can make money. But they are very different in cost, how you find clients, scheduling, tools, and how fast you can grow.
Picking the right type is a big choice. This guide gives you a clear side-by-side look at both. It will help you choose the path that fits your goals, budget, and lifestyle.
How Do Residential and Commercial Cleaning Compare?
| Factor | Residential | Commercial |
|---|---|---|
| Startup Cost | $500 – $2,000 | $5,000 – $15,000 |
| Revenue Per Client | $120 – $350 per visit | $500 – $5,000+ per month |
| Profit Margin | 15 – 28% | 10 – 25% |
| Schedule | Daytime, weekdays | Often evenings/weekends |
| Getting Clients | Fast (referrals, online) | Slower (proposals, bids) |
| Contract Length | Ongoing, cancel anytime | 6-24 month contracts |
| Equipment Needed | Basic household grade | Commercial/industrial grade |
| Employees Needed | Can start solo | Usually need staff |
| Client Relationship | Personal, trust-based | Professional, contract-based |
| Revenue Predictability | Moderate | High (locked contracts) |
What Are the Pros and Cons of Residential Cleaning?
Residential cleaning means cleaning private homes. This includes apartments, condos, townhouses, and houses. Most new cleaning business owners start here.
Advantages
- Low startup cost — You can start with basic supplies and your own car for under $1,000
- Flexible schedule — Work during the day, Monday through Friday. Many owners set their own hours
- Find clients fast — Referrals, Google Business Profile, and social media can bring in clients within weeks
- Higher profit margins — Lower costs mean 15-28% profit margins, even with fair pricing
- Personal relationships — You build trust with clients who tell their friends and family about you
- Easy to grow slowly — Add one client at a time. Hire one worker at a time. Grow at your own speed
Challenges
- Cancellations and no-shows — Clients cancel at the last minute. This messes up your schedule and income
- Emotional work — Homeowners can be picky. You are in their personal space where they expect a lot
- Income limit per client — One residential client might pay $150-$300 every two weeks. That limits how much you earn per account
- Seasonal changes — Some clients pause during holidays, summers, or when money is tight
- Drive time — Traveling between homes takes away from your working hours
A solo cleaner who does 4-5 homes per day, 5 days per week, at $160 per home can earn $3,200-$4,000 per week. That is $160,000-$200,000 per year. With the right prices from our pricing guide, profit margins of 20% or more are doable.
What Are the Pros and Cons of Commercial Cleaning?
Commercial cleaning covers offices, doctor's offices, retail stores, schools, warehouses, and other business spaces. The contracts are bigger, but the work is more complex.
Advantages
- Bigger contracts — One commercial client can bring in $1,000-$10,000 or more per month in steady income
- Steady income — Signed contracts (usually 6-24 months) give you reliable cash flow you can count on
- Less personal stress — Commercial work is professional and contract-based, with clear rules
- Grows faster — Adding a $3,000 per month contract does more for you than adding a $300 per month home client
- Evening and weekend work — Many commercial jobs happen after business hours. This can fit alongside a daytime home cleaning schedule
Challenges
- Higher startup cost — Heavy-duty equipment, more insurance, and sometimes uniforms add up fast
- Takes longer to land jobs — Getting commercial contracts means writing proposals, doing walkthroughs, and sometimes going through a formal bidding process
- Need workers sooner — Most commercial jobs are too big for one person. You will need evening and weekend teams
- Lower profit margins per contract — When many companies bid, margins can drop to 10-15% on bigger accounts
- Risk of losing a big contract — Losing one large contract can really hurt your income. It is important to have many clients
For a step-by-step guide on winning commercial work, read our How to Bid on Commercial Cleaning Contracts article.
How Much Does It Cost to Start Each Type?
Residential Startup
- Business registration — $50-$400
- Insurance (general liability) — $400-$800 per year
- Cleaning supplies — $200-$500
- Marketing (to start) — $100-$500
- Total — $750-$2,200
Commercial Startup
- Business registration — $50-$400
- Insurance (general liability + workers' comp) — $1,500-$3,000 per year
- Commercial equipment — $2,000-$5,000
- Cleaning supplies (in bulk) — $500-$1,000
- Marketing and proposals — $500-$1,500
- Uniforms and signs — $200-$500
- Total — $4,750-$11,400
How Do Pricing Models Differ?
Residential and commercial cleaning use different ways to set prices. Knowing these differences is key to making a profit.
- Residential — Usually priced per visit with flat rates based on home size, room count, and service type. Use our Price Calculator for residential estimates
- Commercial — Usually priced per square foot, per visit, or as a monthly contract rate. The price depends on how often you clean, what is included, and what time of day you work
How Do You Choose the Right Path?
Choose Residential If...
- You are just starting out — It is easier to get into and less risky
- You like daytime work — Home cleaning happens during normal hours
- You want to work alone at first — No need to hire workers right away
- You like personal connections — Getting to know homeowners is rewarding
- You have a small budget — Under $2,000 gets you started
Choose Commercial If...
- You want more money faster — One contract can equal 10-20 home clients
- You are okay with hiring — Commercial work almost always needs a team
- You like steady income — Locked contracts give you stable money
- Evening and weekend work is fine — Many commercial jobs happen after hours
- You have money to invest — $5,000-$15,000 to start
Can You Do Both Residential and Commercial?
Many of the most successful cleaning businesses end up doing both residential and commercial work. Here is the best way to do it:
- Start with homes — Build your income, good name, and daily habits with lower risk
- Hire your first workers — Train them on home jobs where you can watch them closely
- Add commercial slowly — Start with small offices (under 5,000 square feet) that fit alongside your home cleaning schedule
- Make separate teams later — As work grows, create a home team and a commercial team, each with their own tools
The most common way to grow is: Clean homes by yourself, then hire 1-2 workers for home jobs, then add small commercial accounts, then split into separate home and commercial teams. Each step builds on the money and habits from the one before it.
Choose What Fits Your Goals
There is no "better" choice for everyone. The right pick depends on your money, how you like to work, how much risk you can take, and how big you want to grow. Residential gives you a faster, safer start with flexible hours. Commercial gives you bigger income with steadier contracts.
No matter which path you pick, the basics stay the same. Give great service. Set prices that make a profit. Build good habits. Invest in your team. For a full startup plan, read our How to Start a Cleaning Business guide.