How much is on-site laundry worth

[Heidi Backer]

Hi there BP, How much is on-site laundry worth? Trying to analyze a deal and the area rental rates are great, but the property we are considering has no laundry on-site and the nearest laundromat is not walkable. Any thoughts on much to deduct from the average rental rate would be much appreciated! -Heidi

[Levi T.]

I got them... Forget the supply/maintain equipment split thing, you wont make anything. Now of days, you can buy them at Lowe's online for cheep ($1.4k). Your local appliance tech can fix them whenever they breakdown, which is like never...

The main point of having coin machines in the building is to answer the one question all renters want to know, is there in unit laundry machines or coin machines in the building? 

You install the machines and jack the prices as high as the machines allow... I had them for $1.75 a load at one time, but then people used the machines all the time, and ran up the water bill. So we jacked the prices, and it worked out better with less loads, lower water bill, and the place rents faster. If they don't like the prices, they can go for a drive or walk to the local laundromat. For the unit's that use it, it works out to about $43.75 a month per unit that washes clothing once a week. If everyone uses it, your rocking, it not, o'well.. at least you can say you have coin machines in the building when showing the property.

Over all, it's not going to fetch you much in terms of improving a deal, but it will help move units faster when trying to rent them.