ROI of washer / dryer in multifamily 6 unit?

ROI of washer / dryer in multifamily 6 unit?

Member since 2021 · 18 posts · 3 votes

Looking into the option of installing a pay to use (coin/card) washer / dryer in a 6 unit multifamily. This could potentially add monthly income, but also be a benefit and convenience for tenants.

Investigating machines that accept electronic payment only as I am out of state and this would remove the need for onsite collection of coins.

1. What are you charging per use?
2. What is your ROI?
3. Any brand recommendations?
4. Is it worth it?

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Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
4y
Quote from @Alex Ramirez:

@Chris Anderson there are companies that will do this for you. They will literally put the machines for you and run them including maintaining them and the split is 50/50 most of the time. Not sure where you are at but you don’t really want to have the liability of faulty machines and having to deal with them. Let me know if you have any questions 

 Aloha,

Some coin-op companies will also give you an incentive check when you agree to a 5 or 10 year placement of their equipment. It depends on how many units, what price setting you want, and how secure the location is. I have received as much as $1500 to cleanup/fixup a space to install their machines (or spend as I want), and still get the 50/50 split with no maintenance cost. Put a large sign on the wall with the phone number for the tenant's to call if any problem (they usually do not notice the sticker with the phone number on the coin slide box!)
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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    If you do this, I would do it it to attract a better class of tenant, and not for the slight added income you might get. Also you should consider the increased maintenance issues that will come with this. I'd buy the 'protection plan' (extended warranty) that they always offer, see if you can get it for 5 years....

  • Rental Property Investor · Houston, TX · Member since 2019 · 184 posts · 147 votes
    4y

    @Chris Anderson there are companies that will do this for you. They will literally put the machines for you and run them including maintaining them and the split is 50/50 most of the time. Not sure where you are at but you don’t really want to have the liability of faulty machines and having to deal with them. Let me know if you have any questions 

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y

    We have coin washer dryer in our 12 unit. Revenue average is 250/mo this easily pays for everything-power, water, premises etc. The tenants schedule and clean up. We collect the coins once a month and need to inspect the property anyways. Rolling the coins is a little tedious-but I love money, and if I get tired of it we use Coinstar and exchange for airline vouchers! 

    Your revenue in a six unit would be lower but you will likely break even, and your units should rent faster; I'd do it anyway.

    Adjusting the coin charge mechanism is really tedious, but there are youtube videos and my handywoman took care of that. Doing it today I would go CC based. The laundry services don't cover our area, so that's out.

    The washers and dryers are expensive and only a few appliance brands to choose from. All in all it is well worth it for you and your tenants.

  • Member since 2021 · 18 posts · 3 votes
    4y

    @Bjorn Ahlblad Wow great info! What are you charging per load for each unit?

  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    4y
    Quote from @Chris Anderson:

    @Bjorn Ahlblad Wow great info! What are you charging per load for each unit?


     For now 1.75. 

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    4y
    Quote from @Alex Ramirez:

    @Chris Anderson there are companies that will do this for you. They will literally put the machines for you and run them including maintaining them and the split is 50/50 most of the time. Not sure where you are at but you don’t really want to have the liability of faulty machines and having to deal with them. Let me know if you have any questions 

     Aloha,

    Some coin-op companies will also give you an incentive check when you agree to a 5 or 10 year placement of their equipment. It depends on how many units, what price setting you want, and how secure the location is. I have received as much as $1500 to cleanup/fixup a space to install their machines (or spend as I want), and still get the 50/50 split with no maintenance cost. Put a large sign on the wall with the phone number for the tenant's to call if any problem (they usually do not notice the sticker with the phone number on the coin slide box!)
  • Member since 2021 · 18 posts · 3 votes
    4y
    Thanks for all the help and input!
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Is there a separate meter for water and electricity?  As Alex said, I'd partner with a company and split things 50/50 as they will deal with any problems.  It would make the units easier to rent and having an onsite laundry is really convenient.

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    4y
    Quote from @Theresa Harris:

    Is there a separate meter for water and electricity?  As Alex said, I'd partner with a company and split things 50/50 as they will deal with any problems.  It would make the units easier to rent and having an onsite laundry is really convenient.

     In a multi-unit building, you would typically have one or more "house" or "common area" circuits on separate meter(s) for general hallway and stairs lighting, security systems, elevator, and maintenance use. Your laundry equipment would need to be on those circuits, otherwise you will need to compensate the resident(s) whose electric service is being used. The vendor can provide the specs regarding the various utility usage per cycle, you just calculate from that the actual usage (dividing the 100% payout by the cost paid for each load to determine  number of cycles), and you come up with a pretty close cost of actual utility usage.
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