Laundry Solutions - 4-Plex?

Question

Hello BP!

Thanks in advance for the  the advice.

I've got a 4-plex.  Each unit is a 1bed/1bath.  They're great little units, but they don't have a laundry option, and there is no room for adding washer/dryer hookups.  I have space on the property and a large storage shed I'm eyeing to install an on site laundry option within.

What are my options in terms of adding on-site laundry to the list of amenities?

I'm considering coin laundry, coinless laundry, free laundry and anything in between that will up the bottom line and provide more value for the tenants.

What are your thoughts?

Cheers!

-Sam

Roderick Carabott · Answer

Samuel:

Laundry is a great addition to any property so we add laundry to almost every building or unit if possible.  Here are some things to consider.

Coin operated Laundry - You make money, but you have to collect coins and machines are subject to vandalism/theft.

Card operated Laundry - There are card systems available, where tenants load the card at your office or online (requires internet connection, payment gateway). The cost of the software and hardware is substantial. In addition you are maintaining y software issues and hardware issues.

Free Laundry - You have to maintain the machine whilst not making money.

In my opinion, since you only have 4 units onsite, it would not make sense to have a card operated laundry system. There is too much upfront cost and maintenance of the software system and cards.

Personally I don't like free laundry either. You have expenses to pay to maintain the machines and pay for the water, electricity and gas! Obviously each market is different and depends on what your competition is doing and the market you are in.

Coin Laundry: If you feel that vandalism/theft in your building is not an issue, then this might be a viable option for you. From my experience, coin operated machines are easy to maintain (vs card operated machines - I am not referring to the actual  machine, but the payment mechanism).

You might also want to consider leased laundry machines, where a company installs their machines and  maintains them, whilst you get a cut from the revenue. I am not very experienced with this option but people I know always try to avoid leased laundry machines.  But anyways I mentioned it cos its another option for you.

Good Luck!

Colleen F. · Answer

I have a similar apartment but it will be a while before I am convinced that on site laundry makes sense (as it is on well ). My thought was always to make the laundry a paying proposition, that is the only way I can get the cost of install recouped. More importantly though it is the only way I think the tenants will be responsible with using it. What are the chances if you make it free that it will be used by people other then your tenants? How many separate loads will they do if the use is free and they aren't paying for water? I just don't see people conserving if there is no consequence for failing to conserve.

I do like the idea of card machines over coin but that may be more expensive for the card reader.

Sarnen Steinbarth · Answer

If you do put in laundry I would definitely do coin-op.  I have found free laundry often times gets abused.  If you price the coin-op lower than comparable laundromats around town your tenants will appreciate the benefit (but likely not abuse it).  I would recommend top-load Speed Queen washer / dryers.  I got some front load ones that were a maintenance nightmare.

Michael Boyer · Answer

I would price out the plumbing and electric for the smaller stacked units (think ge space maker or smaller) in the units before a free standing building....you just need a closet size space and they do this in the efficiency units (450square feet) where I have a condo rental..this may put the costs for electric back on tenant if individually metered.. I applaud you wanting to add value and improve quality of life for tenants... But above comment is probably right about tragedy of the commons effect on "everyone's laundry area" which can be a cleaning and utility cost issue and even vagrant or misuse issues.. Best of luck.

Laundry Solutions - 4-Plex?

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