Perry Hall, MD · Member since 2013 · 32 posts · 5 votes
What is considered a good monthly commission on gross monthly collections from the company providing equipment for my laundry rooms? They are putting in four brand new frontload washers and dryers. I am signing a five year lease and will be responsible for the water bill.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
I'm in an agreement for 50%/50% right now with my laundry company. It works out pretty well, though when my contract ends, I think I'm going to get my own machines.
Real Estate Agent · Columbia, SC · Member since 2012 · 112 posts · 106 votes
13y
Is it CoinMach? If so, read the fine print of the contract. I know in one of our contracts with them, the contract automatically renews for 5 years unless you cancel it a year in advance of the rollover. I don't have it in front of me now but I am pretty sure that's how it's structured.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Chris D. - our service is with American Meter and Appliance. And funny - I'm dealing with that very issue. My lease just renewed for 5 more years and I had no idea it was suppose to. To me, it seems like they should give some kind of notice, or at least I should have seen a contract when I bought the building and read that - but I didn't. I guess it's just a lesson learned!
Perry Hall, MD · Member since 2013 · 32 posts · 5 votes
13y
Brandon, if you end up staying with your current provider
because of the leasing issue, you may want to request new machines. Also, fifty percent per month seems rather low to me compared to what I've seen. Maybe you can work out a better deal?
Commercial Real Estate Broker · Scottsdale, AZ · Member since 2013 · 36 posts · 11 votes
13y
Side note on laundry, ask that they throw in machines that accept credit or loaded cards if you can in place of or along with coins. It increases laundry revenue by large margins in basically every study.
Real Estate Agent · Columbia, SC · Member since 2012 · 112 posts · 106 votes
13y
@brandon turner yea, and I was told by a friend of mine who owns a bunch of laundromats that their lawyers aggressively fight if you try to break the contract. You might have legal grounds to break it but they're gonna fight it and its going to make it not worth it.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Chris D. that's what I was thinking too. I got my lawyer to look at it - but I doubt much will happen. Oh well, I guess I'll split 50/50 for a few more years! Less hassel that way, anyways.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
Originally posted by Irene Grabau:
What is considered a good monthly commission on gross monthly collections from the company providing equipment for my laundry rooms? They are putting in four brand new frontload washers and dryers. I am signing a five year lease and will be responsible for the water bill.
... and the electricity or gas to run dryers?
Hi Irene! The largest coin-op guy up here gets 70%. He does repairs and rebuilds, does the collections, and writes you a check every month. You pay utilities and maintenance of the laundry rooms.
Since they're front loaders you might ask him if he cleans the boot on the washers when he comes to empty coin boxes. It needs to be done and done right so you dont end up with stinky moldy sludge in the folds of the boot.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
Originally posted by Brandon Turner:
Chris D. that's what I was thinking too. I got my lawyer to look at it - but I doubt much will happen. Oh well, I guess I'll split 50/50 for a few more years! Less hassel that way, anyways.
And a hassle it can be!
I have seen way too many coin-ops after they have been broken into. Most give up after they realize how much work it takes to get paid, but the damage is done. Tenants want to save money so they overload them, reducing the length of time between servicing. Once they get used to convenient laundry they tend to get demonstrative about how well the machines dont work, and when theres a breakdown... And there will be... some leave nasty notes on the offending unit for everyone to enjoy. Dirty stuff is brought in and lint is left behind and few will care to do anything about the machines being dirtier than the clothes they put in them. All in all it isnt what the coin-op guys make it out to be. Great for them, but for a landlord not so much.
Me thinks it best to be of the mindset that its simply a service provided, and set it up to take care of itself and not a headache generator. Then if you make money its gravy.