Laundry in 4 unit: coin vs free?

Question

I want to put a laundry in the basement of my 4U as an amenity. I've done it "free" in a 3U with success for the most part. In the "free model you build the cost into the rent. The upside of free is cheap machines, you can buy a basic low maintenance Whirlpool top loader for $100 on CL. Can make it cheaper to buy another than repair. Beside the maintenance of the machines the downside I'm worried about is in a 4U with 8-12 people in it folks might be casual about hogging the laundry with partial loads or the one unit of legacy "low functioning" tenants letting in their friends.

The upside to coin-op is explicitly covering expenses and no wasting of resources. The downside is a considerably larger buy-in, like $1600 to $2400 for machines vs maybe $200 for non coin-op.That could take years to recover. I'd consider the leasing companies since I'm not really looking at this as a moneymaker, the rent roll in the 4U is $5100, and someone else being responsible for maintenance is appealing. But I've heard some of them aren't interested 4U places. Any thoughts?

Johann Jells · Answer

I'm somewhere in between, in a gentrifying area. 3 of the 4 units are now college educated people I placed. The basement studio is an issue, with a low functioning couple on SSI. They don't cause real problems, he helps out with garbage and shoveling, but they're not who I would choose.

Sam Shueh · Answer

Coin definitely unless you invite the entire block of renters get it for free.

Roy N. · Answer

We have removed coin-op laundry and common laundry rooms from all our properties of 6-units or less in favour of en-suite laundry. Residential machines are about 1/2 the capital outlay; the tenant pays their own operating costs (electricity, hot water and, more frequently, water itself); we can charge higher rent for the convenience of en-suite laundry; and if the machines are abused, we know who is responsible.

Rocky Sanguedolce · Answer

COIN! If you dont they will have their friends and family over to do free wash on your dime.

Account Closed · Answer

If you want to leave no stone unturned and determine the feasibility of outsourcing your laundry room function to an on-site service provider, Google "laundry room service" and check out what might be available in your area. A long time ago, I was watching a small publicly-traded company in this space, but it got acquired and its shares are no longer available for purchase. I have no idea how many units in a multi-family building are required to make this kind of service practical.

Johann Jells · Answer

I just had an interesting thought. I could save equipment cost by buying just the washer coin op and using a standard dryer. No one is going to bring in their wet clothes to use my free dryer! Those old Whirlpool gas dryers are pretty robust and I can probably get one for $50.

Roy N. · Answer

Johann:

Between the higher capital costs for commercial coin-op machines, the operating expenses , and the space set-aside for a laundry room, we found that common, coin-op laundry does well to break even ... which is why we ignore laundry revenue when analysing an apartment building and why we found more benefit in moving to en-suite laundry in our smaller buildings (as mention above).

Steve S. · Answer

I just bought 4 washers (2 working and 2 that were broken) all same make for $900 that were coin operated. That gives me two that are working and two I store for spare parts.

If I was you in your situation I would do coin operated. Look around for used ones. Sometimes apartment blocks have the machines on lease and send them back to the company. They're okay units that just have some wear on on them, many if you buy them by the supplier you can get some sort of 1 yr refurbished warranty as well. I'd just go with the coin op as a way to put the coins into an account that will pay for the next washer and dryer when those units break down. Otherwise the money has to come from your own pocket or an inflated rent.

Dick Rosen · Answer

Washer is set at $1 and dryer is $1.50

I don't think we paid that much for machines though.

Laundry in 4 unit: coin vs free?

Laundry in 4 unit: coin vs free?

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