Best Laundry Options for Landlords in Multi-Family ?

Question

Hello,

I am acquiring a 6 unit multi-family property. My first one!! What is the most effective option for new landlords? Coin Laundry service? Owner Operated or 3rd party? I don't want to deal with on-going srevice issues or collecting cash weekly or monthly from premise. I would love any recommendations or companies you use..

Karl B. · Answer

It's coin-op... they're paying $1.25 to use the washer and $1.25 to use the dryer. They can use them all day long if they'd like as the proceeds pay the majority of the yearly water/sewer/garbage bills.

Pat L. · Answer

We have a 6-unit & had the 20yr old $1/wash/dry machines that were rock solid. The coin boxes were no longer lockable & we couldn't raise the cost any higher, so we decided to raise everyone rent & supply a new set of (scratch & dent) appliances. Then the b*tching began, no-one seems happy with the free appliances, they started clashing with the available time esp since 3 of the couples are college students & are free most days & nights. The dryer was constantly overloaded & a $30 thermal switch finally failed resulting in a $150 service call/repair. Apart from the repair $$$ the raised rents definitely covered the cost of electric (I have a sub-meter on it & it now runs $22.95/month for electric with our $/KWH) & the water costs went down probably/maybe because of the more efficient washing machine???

I would definitely go ensuite, in fact we have added that to 2 of the units since & raised the rents for those units $100/month since.

Some peace at last!!!

I would definitely go ensuite, in fact we have added that to 2 of the units since & raised the rents for those units $100/month since.

Some peace at last!!!

Rob Singh · Answer

@Karl B. Thanks for the feedback. How do you control the water bill? If landlord is paying that expense item. I can see the tenants having a field day with laundry..

Rob Singh · Answer

@Roy N. Thanks for the security and access code concerns. I will have to research pre-paid cards vs. coin operated, since that would save me a lot of time.

Roy N. · Answer

Rob:

In our experience, the best bang-for-your-buck is en suite laundry where possible.   You can charge higher rent (~$50/mth); the tenant pays some - or perhaps all - the operating costs (electricity/gas, water, DHW); and you can use residential machines (A high-efficienty front-load laundry can be found for $1000.00 or less).   Additionally, if the machines are damaged, you know who is accountable.

If you are compelled to have a common laundry room then you need to explore access restrictions (keyed or keycode) and, possibly, surveillance.   Coin-op laundry is a pain for both landlord and tenant.   Systems which use prepaid cards or member cards/codes are better for the landlord (less incentive for theft), but are even more costly - unless your building is sufficiently large, the costs may not be justified.   If you will be outfitting a common laundry room, I would recommend looking for a third-party service where the partner supplies and maintains the machines and you share the revenue.  You should earn enough to offset the cost of operating the laundry machines.

Karl B. · Answer

I love the owner-operated route. In my 4-plex I need to empty the coin boxes (one washer and one dryer) once every 3 months (in a 6-unit you would likely need to empty them every two months).

I've only ever needed to repair the washer once during the 2+ years I've had coin-op in that property (never had to repair any of the washer/dryers in my other properties).

Best Laundry Options for Landlords in Multi-Family ?

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