New 3 family, owner occupied, Providence RI: coin op or regular machines?

[Ellen Feiss]

Hi BP -- I have learned so much from this community so far, thanks so much to all

I have a 3 family in a nice, A- area of Providence. Currently I have inherited tenants, but I am planning for lease turn over. There is currently 1 washer/dryer set, regular/non coin operated, in the basement. I live in the building.

The machines are constantly in use -- it's annoying to me, and another set will be nesc for the higher end tenants I want to attract. From what I've seen there is no abuse (outside laundering) going on. However, because the set up is free, the machines are constantly in use. 

I could either 1) install a coin operated set up for the two tenant apartments 2) install another regular set and have two sets in the basement. 

I have read extensively on this site about coin op vs non coin op and the opinions are decidedly mixed. I aim to attract middle income, long term tenants. All plumbers I have spoken with have advised me against in unit laundry due to the floors (old building) and potential for leaks. I could get *maybe* $100 more a month if each unit had a dedicated set up in the basement. At the same time, it might be more cost effective to install coin op to lower laundry usage overall and add a bit to my water bill. I pay the water bill.

I have a local appliance guy who has whirlpool coin operated machines for $2400 total. He says his average repair is $150-$175.

The rental range for my units are $2300-$2550 (the latter would be with a dedicated laundry set up). I could also put in the hook ups and have tenants bring their own equipment. But I am also aiming to attract graduate students who will not want to put in their own equipment. 

Surveying landlords on my block - one suggested dedicated regular set ups in the basement, and setting rent at $2550, another suggested coin op and being more flexible with rent. The rental market does seem volatile, with the higher prices only supported in the high season (may-sept lease start). Many thanks! 

[Luan Oliveira]

Here's a thought - since you already have machines, assign a day for the week to each tenant. 

If you do get a second set, make them yours, and assign the tenants each alternating days to the other. 

The other option would be to set up three hookups in the basement if there is space. If you do this, plumb and wire each one to the individual units to keep your costs down. Then go to the Lowe's outlet in Avon and get a cheap set for less than $500 total. 

[Alecia Loveless]

@Ellen Feiss I have a 4-unit that shares one set of coin op machines. I just took the past 12 months worth of funds from them to the bank yesterday and had $244. You will not make much money from coin op machines.

So far in 5 years I’ve had one repair and with the parts it was about $275.

Personally I’d go to Lowe’s and buy a set of machines that only has dials for controls, no electric, digital panel. These are generally easy and cheap to repair and should last for at least 15 years. A set can usually be bought for $1200.

Assign one set to the tenants and keep the second set for you.

[Ellen Feiss]

Amazing advice - thanks to you both! 

[Ellen Feiss]

@Luan Oliveira I wish i had known about the lowe's outlet before I bought a bathroom sink for one of the units! Thank you so much 

[Ellen Feiss]

@Alecia Loveless the dial rather than digital panel is a great idea. and helpful to hear how much you made with coin op. have you considered metering the water? many thanks 

[Alecia Loveless]

In my area you can’t Submeter. And in most of the towns the water and sewer has to remain in the landlords name. It’s typically just a cost that we factor into our rent amounts. 

[Luan Oliveira]

Quote from @Ellen Feiss:

@Luan Oliveira I wish i had known about the lowe's outlet before I bought a bathroom sink for one of the units! Thank you so much 

 The Lowe's outlet is mostly appliances. But there are definitely deals to be had. 

also, water is cheap around here. I wouldn't get too caught up around sub metering. 

[Gino Barbaro]

@Ellen Feiss

I would put in the coin op, and magically, the machines will be running 50% less. They are just wasting water because it's free.

the best scenario would be in unit washer/dryr hookup, but if it's going to cause damage, then not a viable option.

You may lose $100 per month in rent, but will make some money with the machines and not have any additional work to run the plumbing

Good luck

Gino

[Jonathan Greene]

I prefer the card to the coin-op, even in a smaller property. Tenants who want to jam the coin-op when they are mad, can. It's not hard. The card has less mechanical fixes, but more usage fixes and costs more, but I think does better long-term since they can load the amount they want.

I also agree with @Luan Oliveira in that the best thing that you can do in any small multi is to set laundry days in advance, every other day.

[Bud Gaffney]

COIN OP !