Laundry in Unit?

[Robert McEachern]

Hello All:

I just purchased a 4-plex which has washer/dryer hook ups in each unit.  I was speaking with a colleague about his rentals and he told me "I got some advice a long time ago that said, never install washer/dryer in your units.  Always make the Tenants put in their own washer/dryers.  If you're lucky, the next tenant will purchase the washer/dryer from the previous tenant."  

Should I install washer/dryer units?!?!  What about coin operated washer/dryers?  Are tenants adverse to those?

Thanks for the help.

Rob

[Roy N.]

@Robert McEachern

This discussion / debate pops up at least once a year here on BP.   The answer really depends on your market (what is your competition doing or not doing?), your clientele (students, young professionals, families, etc.), and your strategy.

We have moved to en-suite laundry in all of our properties of 6-units or less.  We supply high efficiency laundry units (no coin-ops) in each unit.  Our rational is as follows:

• We can command $30 - $50 additional rent for en-suite laundry;
• It is a differentiator in some of our markets (not have coin-op in student rentals goes a long way);
• Installing the laundry ourselves ensures it is plumbed correctly with drip/catch pans (plumbed to a floor drain) under the washers;
• Providing the machines cuts down on the damage to the building of tenants moving machines in-and-out;
• Using high-efficiency units cuts down on water consumption;
• appliances are depreciated over 5-years (in Canada).  We also typically purchase our appliances from HD using their 18 - 24month 0% interest financing.  When you combine these two elements together with the extra rent we can command, the laundry units are typically "paid off" in 2-years.   After that they make money for another 8 - 10 years.

Now, there will be someone else come along here shortly and give you a similar list of why you should never supply laundry (or other appliances) to your tenants.   I go back to my opener ... it depends on your market, clientele and strategy.