DC Landlords: Is In-Unit Laundry Worth the Investment?

Question

DC/Kingman Park landlord question:

I own a 4-unit building and currently have 3 vacant 2BR/1BA units around $2,400-2,500/month. Leasing has been slower than expected, and management is suggesting another rent cut.

A recurring objection from prospects is no in-unit washer/dryer.

I’m considering installing stacked washer/dryers in all 4 units now while most of the building is vacant and access is easy from the basement.

For DC landlords/investors:

• How much rent premium have you actually seen for in-unit laundry?
• Does it materially reduce days on market?
• Would you install it now or just keep cutting rent?
• Rough retrofit cost per unit?

Trying to figure out whether this is mainly a pricing problem or an amenity/product problem.

Diana Khan · Answer

@Todd Froelich, if I were in your position, I would pay close attention to the fact that you are hearing the same objection more than once. I’ve seen landlords keep lowering rent when the real problem was that the unit was missing something renters in that area expected. Before cutting the rent again, I would compare similar 2BR units nearby with and without in-unit laundry and see how quickly they are leasing and what they are actually getting.

I would also price out the full retrofit before doing all four units at once. Plumbing, electrical, venting, permits, and the actual machines can change the numbers fast. If the cost is reasonable, I would seriously consider testing it in one of the vacant units first and watching whether it gets more interest or leases faster. That gives you real information before spending the money across the whole building.

I’d be glad to stay connected, Todd. I work around the DMV market and always enjoy comparing notes with local landlords on what is actually moving the needle with tenants.

Chris Seveney · Answer

If you are hearing the same things from prospects then it would appear to be an issue. For me I would install it vs. cutting rent as in the long run it will most likely reduce turnover and the time it takes to lease up units.

Richard F. · Answer

Is there currently NO laundry facility, in a common area of the building? It is a big expense to add proper supply and waste plus electrical, and gas, if available. You need to calc the payback period based on what the market tells you the rent differential COULD be.

Much less costly to turn an existing ugly/unused laundry area into a fresh space, add some coin/card operated machines, leave the maintenance to the vending company while you get 50% of the income. Many vend cos will pay you a spiff to offset your fixup costs, for a 10 year contract. They can tell you exactly what the cost per cycle is for the equipment, so you can determine the pricing that they set based on your anticipated tenant load. Add a snack or drink vend, and you get additional income. Of course, the space needs to be secured, and should have security cameras, but that depends on the market.

DC Landlords: Is In-Unit Laundry Worth the Investment?

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