Converting Unit into Laundry room

Oklahoma City, Oklahoma
Multi-Family and Apartment Investing
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Converting Unit into Laundry room

Daniel Suarez
Fairfax, VA · Member since 2017 · 183 posts · 58 votes

Hey All, 

I have a one bedroom 16-plex that has been having trouble getting tenants and keeping occupancy for the past year, one of the feedbacks we mostly get is that even though the apartments are nice they want a washing and drying machine. 


Our manager suggested turning one of our empty units into laundry room to attract better tenants and charge them a fee to use it (that would pretty much cover the price of rent that the unit would get) 


Has anyone done something similar or any thoughts on this approach? Thanks in advance. 

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Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
2y

@Daniel Suarez I don’t think charging a monthly fee to use the laundry facility is a good idea. I have a washer and dryer at a 4 unit I own and they are only set at $1.00/load. There is a laundromat across a rather busy road from the building.

Still 2 of the tenants in my 4 tenant building still choose to go to the laundromat and pay $7.00/load for a big washer and even more for the large dryer and throw two weeks worth of clothes in at a time because they perceive the value of their time is worth more than running 2-3 loads in my cheaper machine and having to spend 4 hours on laundry and $6.00 when for $15.00 they can be done in 1 hour.

I think a monthly fee of $50-75 to use small machines would be a turnoff for busy tenants who likely are just looking for something to complain about.

I also have an 8 unit 1 bedroom apartment building that I bought in April and now that it’s stabilized have had 0 turnover on.

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    Where is this located? What is the starting rent?

    0Reply
  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Oklahoma City, 73112. All bills paid starting at $795

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    Your turnover is not due to lack of laundry at the premises. I would not eliminate the unit and have the headache of laundry facilities that need repair, common areas that will need cleaning, potential for theft and lost articles, etc. There are plenty of laundromats in that area and they are faster and cheaper (bigger machines than you will have).

    Are you accepting applicants who have old evictions? Do you strictly require the gross household income of your tenants be at least $2400 per month? Do you allow pets? Do you offer a cheapest-option first renewal for 24 months?

    1Reply
  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Thank you that was my thought. 

    We don't accept applicants with evictions. Yes, the manager strictly requires 3x the rent. No pets are allowed since it's a very small apartment. We haven't tried the 24 month lease. I don't know why 60% of the tenants just leave breaking the lease without saying anything. 

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  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    2y

    Maybe a slab Up next to the foundation with an enclosed lean too type shed room with electric heat and its  own Hot water tank???

    Maybe a multifamily laundry service in the area can give you some pointers and tips on the number of machines you need and the electrical draw and et cetera. 

    Good Luck!

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  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    @Scott Mac Thank you. That was my thought originally. The price of building something like that with electrical and plumbing might get completely out of hand though. 

    1Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    60% leave without saying anything? Initial lease term of one year?

    I suggest pulling the files where this has happened, redoing the screening yourself and see if you find stuff that was missed by your team. Try to reach the former tenant at work or through emergency contact and ask them why they broke their lease.

    Vacancies lasting for 90-120 days in a 16 unit project of all one bedrooms are entirely possible, but the building should stabilize. Even in high crime neighborhoods you can get a building to stabilize with careful screening. There will always be some turnover in one-bedroom units because they are stepping stones - people either stepping up or down in life. BUT 60% leaving is a major red flag. Next step would be to lower your rent to $695 on your next five leases and see if you attract a better quality candidate. I'd be personally doing the employment, landlord and eviction checks until you figure out what is the source of this turnover.

    2Reply
  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Thank you @Melanie P.

    I’ve been completely hands off letting my property manager take care of everything. I will certainly be a bit more involved in the process.

    Another alternative I saw recommended was maybe doing Airbnb in a couple of units, also we don’t do any section 8 now. That’s sometbing i might want to explore as well 

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    I would not recommend doing AirBNB in an unstable building. You'll invest a lot of money in furniture and making the unit look like an AirBNB and it will either be trashed or get horrible reviews and be delisted. Section 8 tenants are good because they are sticky, but if the screening is bad you can get difficult/hoarder type tenants that are a drag on the building because they can't get along with the normal tenants, cause roaches/rodents, etc. Simply adding that you happily accept housing vouchers to your advertising will bring in Section 8 applications that you can screen like you should be doing with everyone else.

    You've got to get rid of the PM immediately. Are they charging lease up fees at each of these turnovers? The suggestion of laundry facilities shows that the PM is way out of their depth on turning around what you've got going there. You might be able to find out a lot about what's going on just by reaching out to your existing tenants. 

    1Reply
  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Thank you so much Melanie! I will definitely take that into consideration 

    0Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    2y

    @Daniel Suarez I don’t think charging a monthly fee to use the laundry facility is a good idea. I have a washer and dryer at a 4 unit I own and they are only set at $1.00/load. There is a laundromat across a rather busy road from the building.

    Still 2 of the tenants in my 4 tenant building still choose to go to the laundromat and pay $7.00/load for a big washer and even more for the large dryer and throw two weeks worth of clothes in at a time because they perceive the value of their time is worth more than running 2-3 loads in my cheaper machine and having to spend 4 hours on laundry and $6.00 when for $15.00 they can be done in 1 hour.

    I think a monthly fee of $50-75 to use small machines would be a turnoff for busy tenants who likely are just looking for something to complain about.

    I also have an 8 unit 1 bedroom apartment building that I bought in April and now that it’s stabilized have had 0 turnover on.

    3Reply
  • Lucia Rushton
    Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    2y

    @Daniel Suarez it’s a great idea. One you make money on the machines and two you want to evaluate the max market rent and where you are now; if there is not much upside left, then the cost of turnovers gets factored into your bottom line as well. So yes there can be much upside.

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  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    @Alecia Loveless, thank you. The trial is making sure the trial doesn't cost very much and that we have at least 50% of the current tenants agreeing if not definitely not worth it. That is awesome. Is your 8 unit in Oklahoma? Does it have any laundry units?

    The only laundromat is about .6 miles, was thinking of maybe partnering with them as option b. 

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  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    @Lucia Rushton Thank you! yes, one thing that worries me is that maybe we haven't thought about al of the possibilities to imrpove the place naturally. 

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Daniel Suarez  Do units with laundry actually go for 50/more a month? That is the question you have to ask.  Is there no other place to put laundry besides losing a unit?  Do you want to add laundry if you get no more rent? 

    A couple of things: 

    PM may have set the price for your units slightly above where it should be (because they don't consider lack of laundry).  

    PM is not putting the no onsite laundry in the ad so you get a lot of people that want laundry onsite showing up for a showing. Trust me no one changes their mind on this. I have a building with no onsite laundry and tell them upfront. You will still get people who come and see it and then say I really need laundry but it is about 1/3 as many like that. It is a waste of everyone's time if you have people looking who you have to convince to want the place. 

    If it is a borderline neighborhood where section 8 would help explore it. screen well.

    1Reply
  • Zach SikesBusiness Member
    Residential Real Estate Broker · Edmond, OK · Member since 2011 · 452 posts · 183 votes
    2y

    @Daniel Suarez - that many tenants breaking leases that quickly is definitely a flag.  

    We're in the OKC market and don't see that happening very often. 

    @Melanie P. has the right idea.  Trust the manager, but verify everything.   A good manager will be able to share all communication logs, screening reports, leases, etc.  Look for slow communication with tenants, and find out exactly what they are saying.  Hopefully this is something that can be fixed quickly

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    If you put a flat rate laundry room into a building like this everyone your tenants know from the neighborhood will be doing their laundry on your power and water. Tenants in need of money will do wash and fold for family, coworkers and friends. Did your manager bring up any of these risks or suggestions to mitigate them? 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    With 1 bedroom units, if they are younger people, they may move on to a larger place.  Have you thought about converting some of the units into a 2 bedroom unit? Depending on the layout, if you had 3 one bedroom units next to each other, divide the middle one in half and use each for a bedroom for the two 'end' units.  That would also give one of those units a second bathroom (or maybe both if you converted the kitchen into another bathroom).

    The laundry is likely an excuse. As someone else said, if there is a laundry nearby, you go there every week or two, load up machines and you're done in a few hours.  Lots of them have wifi, so you watch movies while waiting.

    0Reply
  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    2y

    Use coin-op instead. If you use a base fee your tenants' friends and family will show up and will run your laundry machines ragged. I discovered this in a small multi-family I had purchased years ago; the friends and family made my water bill very, very high as they had their own washer and dryer there when I purchased the place. 

    Buy some used coin-op machines. If you're patient and are willing to drive to get the machines you can buy solid coin-op washers and dryers for under $300 each. 

    I don't think I've ever paid more than $150 for a coin-op washer and it was a commercial Speed Queen - super rare to get one at that price but I came across it on FB marketplace and jumped on it. 

    Five or so years ago I bought electric dryers from a large apartment company for next to nothing - they just wanted to get them out of their office building. 

    Also, I've found tenants love the fact I have washers and dryers in the building. Some tenants cherish this though some will simply do their laundry at a friend or family members' place. The laundromat up the street charges $2.00 per run and my machines are set to $1.25. 

    I also recommend putting a soda machine in there as well (they can be purchased for relatively cheap and are plentiful on FB Marketplace) - but price the soda at a good, low price so you're not gouging the tenant. You wouldn't believe how well Mountain Dew sells in a soda machine (Coke/Pepsi and Dr. Pepper do well also but Mountain Dew sells like nothing else).

    0Reply
  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Thank you @Colleen F. that is a good question about how much more are units with laundry. And yes making sure to tell them upfront that there is no laundry makes sense to vet out people.

    @Zach Sikes, thank you. Yes i do hope to turn this around in a couple of months. 
    @Melanie P. That was one of my first thought. If we charge $50 to only some tenants, they can share the key as well. 

    @Theresa Harris, I haven't thought of this before, most of the tenant pool are not that young

    @Karl B. Thank you. i also though of that. The problem is i'm an out of state investor and it would be hard to get the coins, but yes, i don't like the idea of having them using the washer and dryer for friends, etc. 

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    2y

    Wow lots of feedback here.  Some good ideas.  I would not give up an apartment for a laundry knowing the area and the potential for lost rents.  If you do laundry look at some of the options out there to convert a typical washer to pay per use,  it is a decent deal i think and something we consider from time to time on units.  My opinion is that with that much turn over the issue is either price or condition.  You can overcome alot of condition issues (run down surrounding properties, noisy neighbors etc) with a lower price, you can also improve the condition although it would really depend what they are.  I would be aggressive on the price, see what they start filing at.  Also expect things to fill soon when you hit the price and right season.  We had 8 vacants in our 72 unit complex and then in the past week they all filled without any price change.  

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Daniel Suarez  Also depending on the area there are also pickup services to do laundry and drop off services that you  can have a list of as well as laundromat locations for potential tenants. I know it is less acceptable now to not have laundry than it used to be but it is common in some areas and you need to make people aware both upfront there is no onsite laundry and what there options are locally.  At first I was surprised to see the pickup services come to my building but it makes sense for busy professionals and my very senior friend who uses it. 

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  • LeeAnn Owens
    Investor · MD · Member since 2023 · 71 posts · 45 votes
    2y

    @Daniel Suarez if you’re having 60% of the tenants breaking leases I wonder if it’s the quality of tenants that are there? Meaning are people leaving because they feel unsafe with their neighbors? Do you have tenants who are loud and inconsiderate forcing others out? I’m also curious about what type of employment the people have who are breaking their leases. Try to rent to people who have jobs that keep them local and who have been with their company for a while if you can. That should help your durations. 

    Also- I’m for adding the laundry room. I wonder if you could lease the machines so you’re not responsible for maintenance? 

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  • Daniel Suarez
    OP
    Fairfax, VA · Member since 2017 · 183 posts · 58 votes
    2y

    Thanks @LeeAnn, 

    A lot of the tenants break the lease because they cannot pay the rent and just endup leaving. Just foudn out actually one of the tenants that broke the lease ended up being a crack addict that was stealing from another tenant (smh) 

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  • LeeAnn Owens
    Investor · MD · Member since 2023 · 71 posts · 45 votes
    2y
    Quote from @Daniel Suarez:

    Thanks @LeeAnn, 

    A lot of the tenants break the lease because they cannot pay the rent and just endup leaving. Just foudn out actually one of the tenants that broke the lease ended up being a crack addict that was stealing from another tenant (smh) 

    Definitely need to do a better job verifying income/ employment then! Sorry to hear you’re dealing with that. I use rent spree for tenant screening. Cheap and easy
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