Here's how you run comps for laundramat rates. Check out what all the nearby laundramats are charging. If there is no nearby competition then you can charge a little more for the close proximity of your WD. If there are none in your town, you can charge even more. If there is a deluxe place across the street, then you probably have to charge less.
You have to remember to empty the coin deposits, as they can accumulate faster than you think.
Shaker Heights, OH · Member since 2013 · 26 posts · 8 votes
12y
In Alaska it might be expensive to heat the water continually during the colder months so that might raise the water bill. It really depends on your desire, the water bill and what your tenants feel is reasonable and fair. I hate diming people to death but $1.00 for wash and free dryer or some combination that leads to $.75-$1.50 with the more expensive one being the washer. Thats just my opinion.
Here's how you run comps for laundramat rates. Check out what all the nearby laundramats are charging. If there is no nearby competition then you can charge a little more for the close proximity of your WD. If there are none in your town, you can charge even more. If there is a deluxe place across the street, then you probably have to charge less.
You have to remember to empty the coin deposits, as they can accumulate faster than you think.
Both replies above are excellent: see what the laundromats are charging, and also make sure the rate covers your water and electric use. I started at a $1 for each and then raised it 25 cents based off my bills.
One more tip: make sure you have a locking door that only the tenants can access. If you're the only place in town you'll find the neighbors using the place quickly. You don't want your tenants bumping into strangers, or someone leaving the door open on a cold winter night.
Another caution: If you price below local laundromats, all your tenants friends will be coming to your building to do laundry.
We've removed common coin-op laundry from all buildings <6-units in favour of en-suite laundry. In the end, we found they just basically covered their own capital and operating costs and didn't make any significant revenue. We have also found en-suite laundry is less likely to get damaged and when it does, you don't have to go chasing "I don't know".
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
I'd also like to add that 4 units is the minimum number of units to have community washer & dryer. Less units than that and it will be a losing proposition.
In general we don't supply washer-dryers in SFH. We do generally supply them in apt. & condos. And if supplied the rent is higher to cover costs, repairs and utilities (if applicable).
In SFH we generally do not supply refrigerators either, so that the tenants supply their own washer dryer and frig. and then they are responsible for maintenance and repairs. I also theorize that the more heavy things a tenant moves in to the rental; the longer they stay.
Anchorage, AK · Member since 2013 · 9 posts · 1 vote
12y
Luckily we don't pay usage for water. It is a set fee. But I'm happy to have the change apply for the electric and gas bill. Who knows, I will have to see how it goes and when this one breaks we may decide to use a different approach. For the time being, looks like I have some research to do.
@Tom S.
the building has a common entrance which I hope I can get the tenants to keep locked. I would hate to come out of my apartment and find someone sleeping in the hallway. I don't think it would happen but you can never be too careful.
Investor · Vincennes, IN · Member since 2013 · 223 posts · 108 votes
12y
All good advice. We try not to have laundry rooms in small buildings either. They are more of an amenity for your tenants than a money maker. We have found that there are better uses of our time than maintaining a laundry room.
Once you get to where you have enough units in a property, it's best to use a service that owns and maintains the machines and you provide the room and utilities. Most companies probably won't do it for less than 12-24 units, though.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
12y
I supply washer and dryer hook ups , the tenants supply their own machines if they want . Why ? I have a 1 bedroom efficency and I am working around the house and i see the renters daughter (45 year old )come over and she has 3 laundry baskets . I ask her what she is doing ? She replies , my laundry . I tell her YOU DONT LIVE HERE , you need to take those clothes to the laundry mat . A very easy problem to solve , I knocked on the door and mentioned to the renter , that I this will stop or he will be getting a $ 75.00 a month rent increase .
Problem Solver / Investor · Anchorage, AK · Member since 2012 · 118 posts · 34 votes
12y
hi April!
Are the washer/dryer gas or electric? For the common door, you can get the self locking knobs or put a locking door on the laundry room. One key per apartment setup. Or even switch to a keypad lock on the door for the laundry room. Typically up here we see about $1.25-1.75 for washer, and .75-1.25 for dryer. Congrats on the four plex!
Rental Property Investor · Lexington, KY · Member since 2012 · 115 posts · 64 votes
12y
I won't say what has already been said. I will say that these coin op laundromats can be great investments. Don't ever get in a contract with a large company like Coinmach. They get you in long contracts that are impossible to get out of and auto renew every 7 years. Oh yeah, there's only like a 30 day window (every 7 years) to give your notice that you do no want to renew. Crazy, but that's business I guess.
Nice to see a face from Alaska. The washer and dryer are both electric. Thanks for the door advice. I didn't think about a self locking door. I have so much to learn and think about.
I know what you mean with Coinmach and the contracts. All the trash companies seem to have gone the same way, with the contract for eternity.
Other than that though, we like Coinmach. The tenants have a problem with the machines, we tell them to call the 800 number. They are pretty much there within a day to fix it.
It seems like once a year someone is trying to bust into a machine for the quarters. Last year we had someone rip the whole top off a machine. All for maybe $10 worth of quarters. If it was at one of our properties with Coinmach they would have replaced it. Unfortunately we owned that one.
And don't even get me started on how often they prop the doors open in the middle of winter so that your pipes freeze....
Salt Lake City, UT · Member since 2013 · 29 posts · 4 votes
12y
When I lived in Anchorage (most recently in 2012), I weighed heavily the price of laundry into the decision of where I lived. I was still a college student, but I actually did the math and saw that it was cheaper to actually buy a washer/dryer and use it for a year (between my roomate and I) than to pay the prices I saw people charging.
It was common to pay $1.50 for washes and $1.50 for drying. The last place I lived was an apartment complex on Susitna st (real easy to figure this out haha), and I just took my laundry to a laundromat every 2 weeks, even though it was a hassle to drive 15 min each way. I did this because the apartment was cheap and used the horrible 120 volt electric driers that took 3 runs to actually dry a full load of clothes (they were piped wrong as well).
Anyway, moral of the story, you will most likely not get an engineering student who is bored and anal enough to do a cost analysis on his laundry lol.
Here's a quick summary of what it costs to do laundry with Anchorage electricity prices:
Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
12y
We have a coin op laundry in the basement of our 14 plex. $1 wash and $1 dry. Pulls in $70-$80 per week. I think it's great, but also haven't had any maintenance issues with the machines yet.
Interestingly, after buying this building and learning about the laundry we realized that the bedroom community this building is in doesn't have a laundrymat at all. Lots of rental activity in this town, so it got me thinking that maybe we should build a laundrymat. Anyone have any experience with that?
Investor · Anchorage AK and Hampton, VA · Member since 2012 · 140 posts · 82 votes
12y
Hi April,
We've operated a laundry in our 8 plex (1 BR units, so just singles & couples doing laundry) for 6 years now. I think Roy nailed it on the pricing for Anchorage. However, I would caution that as was mentioned earlier, if the price gets to high people will just go to the big laundries instead. We actually found (after 2 yrs) that we made more by lowering our prices. And I highly recommend self closing hinges and a keypad lock on the door. Schlage makes a couple very good locks that can store multiple opening codes and are easily re-programed, kinda spendy but well worth it.
This is my first time posting anything here at BP. I own a 20 unit complex in Metairie, LA. I have 4 dryers and 4 washers total at $2.00 per wash and $2.00 per dry! I would raise the rates due to increase in water,gas and electric!
Anchorage, AK · Member since 2013 · 9 posts · 1 vote
12y
Lots of great advice to consider. I appreciate everyones responses.
I do have to say I was wrong about the water charges. I just got off the phone with the water and sewer company. I guess if you own a 4-plex or larger you are charged per 1000 gallon, 2-3 plex has the choice of metered or set.
@Scott Sewell
yes, I've heard Schlage makes the best locks. Also learned that one from experience. Winter is difficult on the locks here or so they say.
Salt Lake City, UT · Member since 2013 · 29 posts · 4 votes
12y
Hmm interesting. Water company considers 4 plex's commercial (metering) while the banks don't. Didn't know that, thanks. Still, water is practically free there.
For locks, use graphite lubrication, not something with oils that gel/gunk up when cold.