Thieves....How to stop them!

Multi-Family and Apartment Investing
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Thieves....How to stop them!

Nik S.
OH · Member since 2014 · 454 posts · 227 votes

I just put in a new washer and dryer a few months ago for a 12 unit buidling and things were going great. Tenants were happy with the new machines & I was generating a little more laundry income!

Unfortunately, I just found out that someone has been stealing from my machines. They must have a key to the change compartments and are removing all the change. The machines don't show any evidence of tampering. My PM gave the keys to the older gentleman who lives right next to the laundry room and he will be collecting the change throughout the day, no set times. That solves the problem temporarily as he's always home and is now on the watch for suspicious activity. 

I don't like to rely in individual for things like this so it's my obligation to devise some sort of lock mechanism that covers the key hole of the change compartments. A separate lock mechanism that only I have access to (my PM). 

As you see below, the change compartment is located on the bottom of the whole coin mechanism. It is recessed in the mechanism. To remove the change, you simply insert the appropriate key, turn and pull out. I am thinking I need to "cover" that area with some locked metal but I am unsure as what to devise...

Any suggestions anyone? Has anyone gone through this? 

The picture of the older machine isn't mine however it is setup the exact same way as mine. How can I deter the thieves who have a key to my change compartment?

Thanks all!

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Arlen Chou
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
11y

@Nik S.This is petty robbery so who ever is doing this is not going to spend much time trying to get your money.  I would suggest just bolting or welding a hasp across the front of the key area and locking that with a pad lock.  With the hasp across the front they won't be able to get their key into the lock. This will deter them and hopefully they will just move on to easier pickings.  When you need to get in, just unlock the hasp, hing it open so you can insert your key and get your money.  Think of it as a chastity belt for your coin box.

A camera is great if you have the time to react. But unless you actually can tell who the person is in the video the cops will not do anything about this crime.

Good luck and let us know what works for you!

-Arlen

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  • Ken Barrett
    Specialist · Anniston, AL · Member since 2013 · 59 posts · 32 votes
    11y

    And I hope you are charging more than $1.25. Those slides can go up to $2 and I wouldn't be any less than that.

    People pay extra for convenience that why a bottle of water at a gas station is $1 and a case is $2.99 at WalMart. Depending on water and sewer rates it may be costing you $0.40 to $0.60 per wash. Maybe more as Top Loaders use a lot of water.

    At $0.65 profit you will need to run it 125 times to cover the cost of a Service Tech to show up. And if you are cheaper than the local Laundromat there is more incentive for your machines to get constant use.

    Consider how much someone would pay per month to use that room for storage and you should be making at least that amount in the Laundry.

    1Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @Ken Barrett I charge $1.75 for washer & dryer.

    Tenants love being able to do their laundry there, that's why I don't want to remove them. After paying utilities, I make prob $150-200 per month on those units, profit. Nothing great.

    It was an apartment but it's now used as the utility room (previous owner made the change) 

    I agree, I'm thinking a steel bar will be more sturdy!

    0Reply
  • Val Garrow
    Lender · Henderson, NV · Member since 2014 · 36 posts · 16 votes
    11y

    Happy tenants are more important than that coin machine.

    Keep the laundry and make it free to all of them.

    Problem solved!

    1Reply
  • Shane Setzer
    Real Estate Agent · Minneapolis, MN · Member since 2014 · 25 posts · 9 votes
    11y

    As a seasoned property manager I have been numerous similar situations in the past at different properties.  If it was someone outside, they would saw off the entire coin mechanism.  If it's an inside job and the machines aren't damaged, they would use a key.  The only person with a key is the property manager- as no two keys are alike.  There are ways to tell when it's professional and when it's not.  We noticed that having a coin service pick up coins for deposit, or having anyone other than the owner, money would go missing. 

    My advice to you would be to change the lock.  I recommend you be the only person with the key and should empty them every month.   It's not worth the risk of leaving a key with someone who might be justifying their actions because they feel you are in someway indebted to them.  This is not so easy if you are located out of town, but I know from experience that it works. 

    I wouldn't put a camera in.  That will only put you out more money. 

    1Reply
  • Shane Setzer
    Real Estate Agent · Minneapolis, MN · Member since 2014 · 25 posts · 9 votes
    11y

    Laundry room hours from 8:00 AM-10:00 PM also helps.  If neighbors hear someone in there after hours they will call the police.

    0Reply
  • Shane Setzer
    Real Estate Agent · Minneapolis, MN · Member since 2014 · 25 posts · 9 votes
    11y

    @Val Garrow 

    Laundry machines are the highest grossing profit per SQ FT on a property.  There are many ways to keep tenants happy that don't have to dip into your cash flow.

    0Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @Shane Setzer if I were to convert laundry room back into apartment, I would earn about the same after expenses! Your right! However, apartment maintanance kills the deal so laundry room it is! 

    BUT, adding another unit to the building adds 30k worth to the property value.... Catch 22 

    ;-)

    It's an inside job, no doubt. I'm pretty sure I know the slickster, regardless I'll handle it! I just bought my "deterent kit" via Home Depot! 

    Tomorrow morning I'm driving up to the property to get it done right! Also I'm going to do laundry money pick up myself, not my PM. Not that I dont trust her, it's just "cleaner" if I do it! 

    0Reply
  • Shane Setzer
    Real Estate Agent · Minneapolis, MN · Member since 2014 · 25 posts · 9 votes
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    @Nik S. 

    It sounds like a good plan.  The company I worked for had over 3000 units and the CEO chose to drive out to each and every building once a month to collect coins.  It made a huge difference! 

    Good luck!!!

    0Reply
  • Anya K.
    Investor · Rochester, NY · Member since 2014 · 66 posts · 27 votes
    11y

    @Michael Tempel , what is the brand of the credit card laundry equipment you use? We have one building without laundry at the moment where we want to add one and are trying to decide whether to put in the paid machines or free ones. 

    0Reply
  • Jon HuberPro Member
    Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
    11y

    @Nik S.

    I am sure you should be able to swap out the lock for a new one. Perhaps even a master locksmith could do it. It may be a cheaper alternative than a camera. Because with a camera, you may only confirm the fact that someone is stealing, but without a face recognition, where does that leave you?

    0Reply
  • Curtis BidwellPro Member
    Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
    11y

    You can change the key so the perpetrator doesn't have the current key.  Also, game cameras are getting very popular and more inexpensive. 

    My manager used to collect the coins but I suspected I wasn't getting full value.  After a particular incident we changed locks and I kept the key. I collect the money myself once a month and my income rose about 25%!  Removing the temptation and ability removed her guilt!  Often she was just helping someone out, but it still affected things significantly. 

    Podcast Guest on Show #95
    0Reply
  • NIck Yuva
    Property Manager · Lake Oswego, OR · Member since 2014 · 1 post · 3 votes
    11y

    Hello Nik,

    I understand that you purchased the machines. A lot of the posts here recommend security cameras which are a reactive measure. They may deter some thieves but not all. At this level of expense you can have card readers installed on the machines with reloadable cards given to the tenants. They can add funds online. Therefore, you will not have to secure any cash, worry about more expensive equipment being damaged or stolen and all money is transferred electronically to your account. I have seen this work at properties and it has been fantastic.  

    3Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @NIck Yuva 

    I see where your coming from, my rig that I devise tomorrow will "test" the waters to see how far these people go.

    I would love to get some resources for having card readers installed. More so, credit card readers because some of my tenants aren't "tech" savy. A lot of older tenants who have no access to internet and/or computers. Most have a bank card however.

    Any one have any sources for this equipment?

    0Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @Curtis Bidwell 

    I assume whoever got in has a master key for those locks. I am just going to place a solid steel bolt w/ a lock through the front of the coin mechanism.

    I will be collecting the money on a monthly basis as well, myself. Even though it will cost me a few hours extra a month of driving time, in the long run it's worth it. Thanks for the suggestion.

    0Reply
  • Bill Fennelly
    Hingham, MA · Member since 2014 · 73 posts · 29 votes
    11y

    re-key the locks...just my opinion !

    0Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    11y

    @Nik S. 

    @Michael Tempel has the right idea.  If you are going to use pay-per-load laundry, then using a card-based system is preferred.

    We have removed common laundry in favour of en-suite laundry in all small buildings - the vandalism and theft is gone and the overall cost has been lower.

    0Reply
  • David Veeder
    Investor · Dallas, TX · Member since 2014 · 112 posts · 83 votes
    11y

    I believe I found a solution for $ 19 at http://www.aaamidwestlaundry.com/order/box_guards.....

    I don't have experience with the supplier.   Looks like a solution with a lock you only have the key to.

    3Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    11y

    Is it possible to put some type of lock on the door that has codes that can be changed, or a card that has to be swiped? 

    0Reply
  • Kendall T.
    Real Estate Investor · Fort Pierce, FL · Member since 2014 · 132 posts · 57 votes
    11y

    A game camera that is motion activated and can see in the dark would be around 100.00-200.00.  Just make sure to get one that has high megapixel so you get good detail

    0Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @David Veeder 

    I'm tempted to order that asap! What do the rest of you think??

    0Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    While the solution @David Veeder posted is probably the most cost effective I think it looks a little off putting. You don't want your residents to feel like they live in the ghetto especially if your property isn't. Listed above is the same reason why I don't like bars on windows. If you don't want to drop several hundred on a camera you could always try this approach...

    http://www.thehomesecuritysuperstore.com/fake-came...

    Send all of your tenants a notice explaining that due to theft with the new machines you will be installing a security camera.  

    If that still doesn't work go with David's option and lock that thing shut.

    0Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    OR.... Nanny clock cam!

    0Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    11y

    @Nik S., I would suggest a security camera with some twists.  First I believe it provides some security for folks using the laundry.  Whether it is a woman alone by herself or someone who leaves there clothes in a machine and comes back later.  I have successfully prosecuted folks stealing from machines.  Next the cameras need to be secure.  We had folks come in in a hoodie then go and break into the room where the camera was then take the hard drive the camera was feeding into.  By searching the dumpsters for a few blocks around the laundromat we found the computer and were able to download the images despite them smashing the outside.  sometimes they will damage the camera then leave and come back later.(I assume in case they are on a live feed somewhere)  I would suggest some obvious dummy cameras, they are real cheap, and some not so obvious real cameras.  Make sure they are secure.  If it makes anyone feel better we caught all 3 guys, we also got them on other burglaries, and all of them got probation.  All of them screwed probation up and all eventually went to prison.  None of them had lived here even 6 months before doing the burglaries.  @Joshua D. will laugh at this but all 3 of them were from Michigan.

    1Reply
  • Curtis BidwellPro Member
    Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
    11y

    I LOVE the idea from @David Veeder !  I'd get a little more discreet lock, but I'm ordering mine!

    Podcast Guest on Show #95
    0Reply
  • Nik S.
    OP
    OH · Member since 2014 · 454 posts · 227 votes
    11y

    @Curtis Bidwell  I'm ordering them too!!! I don't know what size, no one at the property has a tape measure lol!

    What size are your ordering?? 4x4 OR 4x3.5

    I have the newer whirlpool top loader... From lowes.

    0Reply
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