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Coin opearted washer/dryers
Installing a laundry room in my 6 unit. I explored coin operated units and stumbled across a company that has a product that converts any regular washer or dryer into a coin operated unit. I like the idea because I hear the coin operated can break down and are also expensive to purchase. This unit could be connected to any washer/dryer and only cost $300. Has anyone used them or have heard of such a thing?
Thank you!
Alex
I saw on Youtube a couple with a 4 unit that collect aan average of $50-100 a month. Seems like a good way to cover the water costs and increase overall rent with on sight laundry.
@Alex Jacobson I haven't used them but I have heard that commercial machines hold up better to apartment use. I also looked into shinepay when I was thinking of adding laundry and it allowed payments by card. That is a big advantage having lived with a quarter machine last year during a coin shortage. Just some thoughts.
@Alex Jacobson I agree with @Colleen F. in that you would be best off with commercial machines since they will hold up to the use in an apartment complex. Having these available will increase the attractiveness of your property as well. No tenant likes to go out in snow and ice to go to a laundromat. I am also in Colorado. I have done many site reviews and cost segregation studies on multi-family properties. The tenants I have had the opportunity to talk to, love this feature. They can help you with your taxes as well.
@Alex Jacobson absolutely! Do it! That will boost your NOI and your property will be worth more. If you didn't know this, there are companies that will put laundry machines in your complex and they will pretty much maintain them for 50% of the profit. I think it's a win. You will not have to worry about anything but just collecting more income. Best of luck to you!
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
I am not familiar with the add-on coin option, but I would be very concerned about security for that, if you use quarters. If there is a refillable card option, might be ok. Commercial coin-op are typically pretty long lasting, and as prior poster mentioned, there are companies that will provide and maintain them, keeping 50% of the income. These same companies ALSO, for a long term (10 year) contract, provide you with a nice cash payment up front to set up or redecorate the laundry space. If you BUY commercial machines, I would recommend a card or chip payment system, not cash you need to empty regularly.
I'll jump in and agree that coin-op washers are built better and will handle the abuse of many tenants. I would be cautious about sharing a residential set with six units.
I'm planning on putting in the card operated machines in my 2 unit building. I don't want machines in the actual apartments. There are companies out there who will maintain the machines and you lease from them and get a portion of the profit. I think it's a great idea, but it's probably best to lease than own the machines because you don't have to deal with the maintenance.
Quote from @Colleen F.:
@Alex Jacobson I haven't used them but I have heard that commercial machines hold up better to apartment use. I also looked into shinepay when I was thinking of adding laundry and it allowed payments by card. That is a big advantage having lived with a quarter machine last year during a coin shortage. Just some thoughts.
Thank you Colleen. Unfortunately many of my tenants do not have CC. Hard to believe but true. Thank you for the reply. There are also machines that use an app and are credit card and cashless. The future is here!
Quote from @Bonnie Griffin Kaake:
@Alex Jacobson I agree with @Colleen F. in that you would be best off with commercial machines since they will hold up to the use in an apartment complex. Having these available will increase the attractiveness of your property as well. No tenant likes to go out in snow and ice to go to a laundromat. I am also in Colorado. I have done many site reviews and cost segregation studies on multi-family properties. The tenants I have had the opportunity to talk to, love this feature. They can help you with your taxes as well.
Thank you Bonnie, Sounds like it is a worthy addition.
Quote from @Richard F.:
Aloha,
I am not familiar with the add-on coin option, but I would be very concerned about security for that, if you use quarters. If there is a refillable card option, might be ok. Commercial coin-op are typically pretty long lasting, and as prior poster mentioned, there are companies that will provide and maintain them, keeping 50% of the income. These same companies ALSO, for a long term (10 year) contract, provide you with a nice cash payment up front to set up or redecorate the laundry space. If you BUY commercial machines, I would recommend a card or chip payment system, not cash you need to empty regularly.
Aloha,
Wow that would be great if they help cover some of the costs of a remodel!
Thank you
@Alex Jacobson hard to believe no CC or debit card. I don't know if you can set machines up to use Venmo or cash app but I know you can use those apps without linking it to your bank account and like you say there are cards that pre-load hopefully using an app and not an onsite machine.
It will just be a money question because for 6 units it will be a while before you get the money back. It does make your apartments more marketable. I would be curious the water use increase you see with machines. I am on a well and have considered adding machines but I keep going back to the water issue.
I would also consider a commercial machine, specifically Speed Queen. I bought new consumer grade appliances for my primary home when I moved in and within five years I had to replace my washer and fridge and it's just my wife and I in the home. I went ahead and did my research and spent the extra money to get a Speed Queen unit for my home. They are made in the USA and should last us 20 years. I have a feeling that if you put a coin-op on a consumer grade washer/dryer you will be replacing them every few years and will likely spend the same or more versus buying commercial units.
Quote from @Joel Case:
I would also consider a commercial machine, specifically Speed Queen. I bought new consumer grade appliances for my primary home when I moved in and within five years I had to replace my washer and fridge and it's just my wife and I in the home. I went ahead and did my research and spent the extra money to get a Speed Queen unit for my home. They are made in the USA and should last us 20 years. I have a feeling that if you put a coin-op on a consumer grade washer/dryer you will be replacing them every few years and will likely spend the same or more versus buying commercial units.
Thats what I am afraid of. Speed Queen Ok I will take a look. Thank you Joel!
#1 Tenant Screening Contributor
- Property Manager
- Honolulu, HI
Quote from @Colleen F.: I would be curious the water use increase you see with machines. I am on a well and have considered adding machines but I keep going back to the water issue.The commercial machine vendors provide a "per cycle" water usage figure, not sure if that is available on consumer models...I never looked! From that figure, you can guestimate based on how many people, how many machines, how many loads per machine...
@Alex Jacobson I have a coin operated machine in one of my buildings and in my other buildings I have in unit laundry. I make about $140 a month on the coin operated machine for my three unit building. I think if you put in machines in each unit you can get $100 more in rent per unit
Quote from @Bonnie Griffin Kaake:How will it help with taxes I wonder?
@Alex Jacobson I agree with @Colleen F. in that you would be best off with commercial machines since they will hold up to the use in an apartment complex. Having these available will increase the attractiveness of your property as well. No tenant likes to go out in snow and ice to go to a laundromat. I am also in Colorado. I have done many site reviews and cost segregation studies on multi-family properties. The tenants I have had the opportunity to talk to, love this feature. They can help you with your taxes as well.
Quote from @Alex Jacobson:
Quote from @Bonnie Griffin Kaake:How will it help with taxes I wonder?
@Alex Jacobson I agree with @Colleen F. in that you would be best off with commercial machines since they will hold up to the use in an apartment complex. Having these available will increase the attractiveness of your property as well. No tenant likes to go out in snow and ice to go to a laundromat. I am also in Colorado. I have done many site reviews and cost segregation studies on multi-family properties. The tenants I have had the opportunity to talk to, love this feature. They can help you with your taxes as well.
When you buy a property with appliances in it, you have paid for them with your purchase. When you remove them, you need to get them off your depreciation schedule. If you replace them the tax year following your purchase, you can expense the new ones rather than depreciate them. It is an item you will likely replace every 10 years so they can be expensed under the 2014 Tangible Property Regulations (TPRs).
This is easiest to implement if you have done a cost segregation study the first year of purchase and one that gives you not only the value of the appliances when the property is purchased but also what the replacement value is. This helps you, your tax professional and the IRS. Some owners can leverage the de minimis Safe Harbor Regulations and expense items under $2,500.
Bonnie, You are awesome. I have a feeling you are a wealth of good information. Thank you,
Alex
I have a speed queen coin operated washer, but couldn't find a dryer that was affordable. I found this add-on box that converts your standard laundry machine into a coin-op machine. They can also be set up to use an app based pay system in addition to coins. If the coin-op machines are lucrative enough, I might add in the app based pay system to limit the opportunities for theft and the need for tenants to carry around coins.
Details on the coin box are in the video: