Making the laundry room secure, as well, would be an added benefit. Coin operated also secures that only those willing to pay will use the laundry facilities instead of those who are just free-loading. Which is added security for the complex.

There are certainly variables to weigh, but overall, having the option there for the tenants is always a good idea.

I don’t know what it looks like in other states, but here I’ve never even seen so much as a commercial laundry business around town.(My current city has a population of 100,000)

Either I’m not looking hard enough, or the coin-operated laundry machine is going out of fashion.
.-= Zach @ Mid Mo Mortgage´s last blog ..Jan 29 – Market Growth Surging As GDP Reports Forthcoming =-.

1. You have a superintendent of a 50 apt residential building.

2. He has to deal with an offending coin-collector on a regular basis who pick-up coins from the coin-operated laundry room in that building.

3. The superintendent has an influential friend working for the building’s management company.

4. The coin-collector foolishly disclosed to the superintendent that he’s only been working for a few weeks on his collection routes on a 90-day trial basis (which means the coin-collector is not yet in the union).

Question:

Is it advisable, in order to get the collector to behave, for the
superintendent to approach the coin-collector (taking advantage
of the information that the coin-collector foolishly disclosed to him)
with a subtle threat to have him terminated explaining to him that the superintendent could have someone call his employers threatening to either pull the leasing account (for the coin-operated laundry machines)away from them or threatening not to have the lease renewed for a new term unless the collector’s employers terminate him immediately?

If no, why not? In detail, what could be the legal ramifications should the coin-collector be terminated as a direct result of the threat presented to his employers?

Could it be proven that the termination was the direct result of the superintendent’s wrongful and malicious interference of an employment relationship between the coin-collector and his employers? If so, how?

The hassle may be worth it for larger facilities where there is a potential for a large revenue stream, but if the net income to you is small, you may well ask yourself if the upside gain is worth the downside risk…

The three largest laundry service companies (LSC’s) are CoinMach, Mac-Gray Corp, and Jetz Service Co. None of the three have a presence in all 50 states. Each market will most likely have several smaller, local competitors as well.

Coinmach and Mac-Gray Corp. are publicly traded companies. Coinmach’s symbol is “DRA”; it also has a security called an “IDS” unit, trading under the symbol “DRY,” which consists of one share of stock and one bond of some type. Mac-Gray Corp. trades under the symbol “TUC.”

You can research Coinmach and Mac-Gray Corp. by going to the SEC’s website at http://www.sec.gov. Read each company’s 10-K report (annual report) to learn about the industry. The more you know about their business, the better your chances of negotiating a favorable deal for yourself.

The lease is structured such that the owner/property manager is lessor and the LSC is lessee; i.e., you as owner or property manager of the building will be leasing space to the LSC to place their washers and dryers.

As the commentator, rye, mentioned above, you can negotiate your cut of the monthly take of the machines. I would add that Coinmach and Jetz (and probably everyone else) will also pay a signing bonus or decorating allowance to induce you to enter into an agreement with them. Don’t forget to negotiate here as well.

Everyone seems to focus on the money; however, the terms of the lease are, IMHO, even more important. There are two clauses that you must insist are removed from the lease: 1) The rollover clause states that if you don’t give notice within a certain time frame, the lease will automatically renew for a successive term. For example, one of the leases I looked at provided something to the effect that if I didn’t terminate the lease within the first month, of the last year of the lease, it would automatically renew for a new term. At the time, we were talking about a ten year lease. So what this clause was saying was that if I didn’t give notice in January of 2016, it would automatically renew for another ten years. No thank you. I got it changed to 30 days notice on my part. 2) The right of first refusal clause. This provides that even if you cut deal with another company, your current LSC can match the offer and retain your business. You don’t want this one because it reduces the incentive for competitors to make a strong offer for your business when your lease is set to expire. Basically, you don’t want to be tied to the LSC after you sign your lease; you want to be an unobstructed free agent at the end of your lease term so you can once again negotiate the best terms for yourself, including an additional signing bonus/decorating allowance. As I mentioned earlier, this is an extremely competitive industry (I discovered this by reading Coinmach’s annual report, BTW), and you should be able to get the terms that you want, within reason.

Go through all the clauses of the lease and counteroffer on all the ones you find objectionable. For example, in both leases I looked at, the LSC wanted me to pay their attorney’s fees if we ended up in court. I countered with either the loser in any legal action pays the winner’s attorney’s fees, or no attorney’s fees. We ultimately ended up with the loser paying the winner’s attorney’s fees. Another clause provided that the venue for any legal action would be somewhere in Kansas. Since I live in Omaha, NE, I asked for, and got, the venue changed to Omaha.