To Coin, or to Not to Coin. That is the Question 14 posts by 10 users

Posted: 07/02/2008 at 08:43PM

Without getting too much into the numbers....I would say definitely coin.

Think about each person doing at least 2 loads a week. That's 18 loads of laundry a week at about $4 a pop. So that's $72 a week or $288/mo. It seems that if you are not having to add additional buildings it makes the decision pretty easy.

And that isn't considering the benefits to the quality of life of the residents. It might help your vacancy rate in the long run when people are comparing alternative buildings or deciding to move to a new place.
I think laundry rooms help build a sense of community. (good or bad thing, depending on the shape your place is in, i would hate to think they are complaining about their lousy landlord while their whites are drying :)

document the income though on your taxes, it will help your NOI for your resale.

Posted: 07/07/2008 at 06:10AM

You may want to consider another alternative. I bought decent washers/dryers for $750 and put them in secured spaces, then rented access to each unit at $20-$25/month. Even with utilities, on a multi-unit building, I'll pay for the washer/dryer in about 2.5 years and expect them to last much longer.

In addition, I'm getting the depreciation benefit which is small, but not insignificant.

I'm in the minority on this one and old-timers insist that I will lose money, but I'm pretty good with numbers and over the past 2 years, it's worked without a hitch. Tenants like not having to bring a big roll of quarters or deal with a coin card. Plus, I find they aren't using pantyhose or other techniques to rip off my coin laundry.

Doing it this way, I get appliances paid for and the project cash flows every month.

Posted: 07/07/2008 at 08:11AM

To be frank, I've been lucky so far; all the tenants bought in. In the event that they don't, I suppose I could separate them with different locks/keys.

Fraud could be a problem in the future, but I don't think it will be moreso than people cheating coin laundry...guess we'll see!

Posted: 07/07/2008 at 03:53PM

There are also companies that will provide the equipment, maintenance, and labor (empty the coins) for no charge. In fact, they pay you. You may want to look into this in your area.

Posted: 10/17/2008 at 05:16AM

I survey the local laundromats about once a year to see what they charge. Some landlords say they should charge more for the convenience. Others say they should charge less to be more attractive. I personally charge the same as the competition. For me that is $1.50 per wash and $1.50 per dry.

The newer coin-drop machines prevent fraud as opposed to the scams on the old sliders. Unless someone knows something I don't! If so, let me know.

The key to the laundry room idea seems like it would be easy for 1 resident to share a key with everyone. Heck, I've found them sharing cable tv & Internet! They love to find ways to take from "the man".

I lease from Coinmach. I pay monthly rent of $50 per set (washer/dryer) and keep all the money. I wouldn't trust anyone else to collect and give me a portion. I'd have no way of knowing how much they are really collecting. Each month, I collect about $250 / building (6 units each building), therefore keep $200 / month before utilities. I rent high efficiency machines to reduce utility costs. If I did the 50/50 split, and they were honest, I would only get $125/month.

Good Luck,
JetPilot500

Posted: 10/22/2008 at 09:05PM

With coin I can make it $1.75 per wash and dry = $3.50 Each unit avg 3 loads a week = $73.50 week just from my building as a ruff guess.

Of course, that's gross, not net and you need to subtract all the operating expenses, such as electric, water, maintenance of the room, security (and I'm not talking fake cameras), damage done by angry tenants, lease payment or debt, management (collecting the coins), capital expenses, etc.

I would suggest talking to one of the reps at a company that sells the coin operated machines. They can tell you how many tenants are needed to justify the cost of the machine and provide all the other information pertinent to installing coin operated machines.

Mike

Posted: 11/16/2008 at 07:07AM

If you have the means to empty the coins yourself, or your property manager will take care of it, then buy coined laundry units USED.

I see them all the time on ebay.

There is an up front cost, but you don't split the coins with anyone else.