Value of Coin-Op W/D in Small Multi-family properties
Aaron NelsonBusiness Member
Real Estate Agent · Seattle, WA · Member since 2016 · 307 posts · 191 votes
White Coat Realty536 Reviews
Value of Coin-Op W/D in Small Multi-family properties
Most Popular Reply
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
9yOur situation:
8-plex, no washer/dryer hooks ups in units, separate laundry room accessed from the outside with a key, each tenant household is issued a laundry key, rules for use of the laundry are posted in the laundry room and written into the rental agreement, laundry room hours are 8am-10pm, there's a natural gas hot water heater, one electric washer ($1) and one electric dryer ($1) - which is less expensive than local laundromats, one utility sink, one laundry work surface attached to the wall for tenants to sort and fold their laundry, one baseboard heater, one floor drain. Concrete floor, window with lace curtains, one framed picture (artwork) on the wall. The laundry room is painted an apricot color, because the name of the complex is Apricot Court. :-) Comfortable and clean. Vandalism is not a problem. Tenants get along.
All appliances are owned by us and we pay for repair service (which is rarely needed), the electric and natural gas for the laundry room are separately metered (electric, natural gas) which we pay, the water is not separately metered for the whole property and we pay for it (covered by the rent), we pay one of our tenants $30 per month to keep the laundry room clean and tidy. We visit the property once a month to check on things, empty the coins and deposit them into our bank account. All bills for the property are set up on auto-pay.
The amount of money we bring in from the machines just about covers the expense of having the coin-op laundry room. It serves mostly as an added amenity, since the units don't have W/D hookups and most people like the convenience of not needing to haul their laundry off-site. Not having W/D hookups in the units reduces their attraction to new tenants, but there is no practical way to add such. It is an older property, built in 1973. The property units are 2bed/1bath and attract mostly small households of one or two people, most are on fixed incomes (seniors, low income). This property cash flows well. We have many long term tenants (5 - 25+ years)
Hope this helps!
6 Replies
- 9yRoy N.Pro MemberRental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
You've asked a question which has almost religious responses here on BP ;-)
As you acknowledged, local electricity and water rates will impact how well your coin-op laundry does. However, it has been our experience, particularly in small buildings, that coin-op laundry does well to be cost neutral in the long run (cover the utility costs and extra capital cost for commercial, coin-op machines).
We have eliminated common laundry in all of our small buildings in favour of en-suite laundry. We have found the following benefits:
1) We can demand an extra $30 - $50 per month in rent for the convenience of en-sute laundry;
2) Tenants pay their own electricity, hot water and, if sub-metered, water costs related to laundry;
2) In small residential buildings (like your quad) we often no longer require an electrical entrance for the house;
3) Vandalism of the laundry machines is non existent {though it was never significant} ... if something happens to a machine, we know who is responsible.
4) High-efficiency residential laundry units are 50-70% the capital cost of equivalently performing commercial coin-op machines {between the extra rent and depreciation, we find the machines are paid-off in ~2.0 - 2.5 years}.
- Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes9y
Our situation:
8-plex, no washer/dryer hooks ups in units, separate laundry room accessed from the outside with a key, each tenant household is issued a laundry key, rules for use of the laundry are posted in the laundry room and written into the rental agreement, laundry room hours are 8am-10pm, there's a natural gas hot water heater, one electric washer ($1) and one electric dryer ($1) - which is less expensive than local laundromats, one utility sink, one laundry work surface attached to the wall for tenants to sort and fold their laundry, one baseboard heater, one floor drain. Concrete floor, window with lace curtains, one framed picture (artwork) on the wall. The laundry room is painted an apricot color, because the name of the complex is Apricot Court. :-) Comfortable and clean. Vandalism is not a problem. Tenants get along.
All appliances are owned by us and we pay for repair service (which is rarely needed), the electric and natural gas for the laundry room are separately metered (electric, natural gas) which we pay, the water is not separately metered for the whole property and we pay for it (covered by the rent), we pay one of our tenants $30 per month to keep the laundry room clean and tidy. We visit the property once a month to check on things, empty the coins and deposit them into our bank account. All bills for the property are set up on auto-pay.
The amount of money we bring in from the machines just about covers the expense of having the coin-op laundry room. It serves mostly as an added amenity, since the units don't have W/D hookups and most people like the convenience of not needing to haul their laundry off-site. Not having W/D hookups in the units reduces their attraction to new tenants, but there is no practical way to add such. It is an older property, built in 1973. The property units are 2bed/1bath and attract mostly small households of one or two people, most are on fixed incomes (seniors, low income). This property cash flows well. We have many long term tenants (5 - 25+ years)
Hope this helps!
I saw a good tip on here a few weeks ago. If you're going to get coin op machines, they are expensive. Just get a coin op washer (or dryer). Buy the other machine non coin op. Charge double for the coin op loads. Now you only have to pay for one coin op machine instead of 2.
- Specialist · Greater Atlanta Area · Member since 2015 · 5 posts · 5 votes9y
Originally posted by @Max T.:
I saw a good tip on here a few weeks ago. If you're going to get coin op machines, they are expensive. Just get a coin op washer (or dryer). Buy the other machine non coin op. Charge double for the coin op loads. Now you only have to pay for one coin op machine instead of 2.
I would definitely pick the washer as the coin-op machine. I could quickly see people washing their clothes for free and then air drying them. Even with the higher cost of electric for the dryer I think it would be less used without the washer than the other way around. I honestly don't think I would go the one coin op machine route, but it is something else to consider and I love being armed with as many options as possible so thanks for passing the tip along.
- Real Estate Agent · Seattle, WA · Member since 2016 · 307 posts · 191 votes9y
Thank you for all of your responses. This information is very helpful!
White Coat Realty536 Reviews - Investor · La Grande, OR · Member since 2014 · 194 posts · 176 votes9y
I have coin op washer and dryer in my 4 Plex in common area. I pull approximately $12.50 per month per bedroom ($1.25 a load, $1.25 per dry, 5 loads a month). I had both machines paid off within the first year, only to have the dryer get ripped off by some meth-head and be forced to buy a new machine. My clients love it, and it makes me a little extra cash.
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