Laundry Equipment - Cleveland, Ohio

[Karl Kauper]

Just curious if there's a consensus: Is it better to own or lease your laundry equipment in the Cleveland, Ohio area (or any area)? My PM is recommending we get rid of our coin-operated laundry machines and replace them with leased ones. The PM says they break down too often. The other option would be to buy new coin-operated machines, but I honestly haven't yet looked into what the cost would be for new machines. - Thanks. - Karl

[Ryan Hehman]

How many machines do you currently have? Would you be leasing or purchasing the same number, or more? Leasing definitely makes sense from a maintenance perspective. Not uncommon in my area for owners of even small multi-unit buildings to lease to have a smaller profit center there but without the headache.

[Karl Kauper]

Thanks, Ryan. It's a 12-unit MF with four machines total. I'm leaning toward buying instead of leasing because (1) I've heard of leasing companies skimming profits and I don't know how that could be prevented and (2) I'm already paying my PM to collect the coins from the machines I own (this service is covered by my existing PM agreement) so I'm not sure there's any additional value for me in paying the leasing company, unless I can pay my PM less, and I know I can't. The machines are expensive, so it's a fairly big up-front cost, but I'm starting to think it may be worth it over the long run.

[Iman Miley]

Hello Karl, 

There are pros and cons to owning or leasing equipment. Depending on the average monthly income you receive from the machines, and the warranty that is provided for any damage that could arise, either option can be beneficial for your cash flow. Leasing may eradicate you having to deal with any re-arising issues the machines may go through if needed repairs are a common occurrence. 

[James Wise]

Quote from @Karl Kauper:

Just curious if there's a consensus: Is it better to own or lease your laundry equipment in the Cleveland, Ohio area (or any area)? My PM is recommending we get rid of our coin-operated laundry machines and replace them with leased ones. The PM says they break down too often. The other option would be to buy new coin-operated machines, but I honestly haven't yet looked into what the cost would be for new machines. - Thanks. - Karl

 Coin operated machines are the worst. The actual process of dealing with that many coins is expensive, dangerous and time consuming. Not to mention they break down and or get broken into frequently... Coinless is the way to go.

[Mohit Asthana]

Leasing them causes less problems imo. We're looking at a 22 unit which has mostly coin-operated and trying to switch them out with leased ones with cards for the tenants. 

Also hard to find maintenance techs sometimes 

[Eric Vlahos]

Hey everyone, I actually work for a family-owned laundry service company that is based in Ohio. 

Even if you purchase, I would suggest eliminating quarters. There are systems like PayRange you can use to accept mobile payments only, and get rid of the dirty, time consuming, and unsafe business that is coin operated services. We offer lease services, and yes, we do require machine minimums, but since we do not put quarter machines in, there is 100% transparency in collections / fees removed for credit card fees. You will make more revenue if you own the equipment, but repairing commercial equipment is not cheap; it's more expensive than residential - so, just plan for that! 

I would suggest coinless and app first, then credit/debit at the machine, then loyalty card system if you have a large apartment community.

[Bob Stevens]

Quote from @Karl Kauper:

Just curious if there's a consensus: Is it better to own or lease your laundry equipment in the Cleveland, Ohio area (or any area)? My PM is recommending we get rid of our coin-operated laundry machines and replace them with leased ones. The PM says they break down too often. The other option would be to buy new coin-operated machines, but I honestly haven't yet looked into what the cost would be for new machines. - Thanks. - Karl

 We have had coin ones' in our 81 unit (east Cleveland)  for 8 years, no issues, Sure some maintenance issues, but all is good