Paid for laundry with shared space- good or bad?

Question

Hi,

My employer has a rental property with 9 units and is debating removing the washer and drier because it's been a hassle. It's currently coin laundry, but we're concerned about the upkeep and the hassle of needing change- as well as repairs. We're considering either removing the laundry units altogether, or adding something that accepts cards or Apple Pay. But not sure if it'll be worth the maintenance and cost. She's charging $900-$980/room in an area about an hour away from Tampa. Any advice?

Thanks, Bri

Kevin Sobilo · Answer

@Briana Peterson, not every cost/benefit decision hinges strictly on the tangible dollars and cents.

With each of my rentals, I want to be offering some things to attract better tenants and to encourage them to stay a long time. Better tenants and less vacancy is near impossible to quantify when making these decisions, but the anticipated benefits do exist.

For example, I include all appliances include in-unit washer and dryer. I also allow small pets (with additional terms, conditions, and costs). Both of those features are not a given in my market and tenants know in most cases if they move they will lose one or both of those things.

I can't quantify that I get better tenants applying, but I believe it to be true. I know pet owners gravitate to my rentals because many of my tenants have had pets. So, I do know that is a motivating factor as well but again I cannot quantify the benefit to me even though I know there is a benefit.

Theresa Harris · Answer

Talk to a local company.  They will supply units and split the profits.  Having on site laundry is good for tenants.

Colleen F. · Answer

@Briana Peterson  it hurts you when you are trying to find tenants.  I have this situation in a 6 unit  with no laundry and some people won't rent the units due to this.  Some have family local and do it at a family members house and we have several companies that pick up and deliver laundry in addition to laundromats.  However, it still costs tenants although not as much as it used to.

Nathan Gesner · Answer

Market dependent. Are they close to a laundromat? If so, an on-site washer/dryer shared between nine units isn't very attractive. If there's no laundry nearby, having a laundry room can help attract tenants.

A coin-op washer/dryer costs $2,000. With nine units you should be able to bring in $300+ per month. Your utility bill is probably less than $150 and your maintenance probably averages less than $50 a month, leaving you $100 per month. The machines are paid for in 20 months and the rest is profit.

Those are my numbers. Do the math yourself and conduct a simple cost:benefit analysis.

Paid for laundry with shared space- good or bad?

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