Evaluating Laundry Room Proposals

[Oren K.]

Among other things, I am in the process of remodeling the laundry room in a 3 story, 39 unit property I purchased last year (25-2B & 14-1B = 64 Bedrooms). Currently, the building is set up with 3 laundry rooms, one on each floor (one set of machines per room). Only one is operational but has been sufficient as the building was less then 50% occupied. As it is now starting to fill up, I do need to provide this amenity at reasonable level.

Also, I 'lucked out' in that Coinmach canceled the previous contract / lease several months before I purchased the property (I have that in writing) so I am starting with a clean slate.

My intention is to consolidate the machines into one room on the ground floor and go with a card system. There is more then enough space for the 6 machines, folding tables, already has a gas line, minimal plumbing changes required but some electrical to accommodate the 6 machines.

The proposals I have received vary in a couple of different ways; Shorter vs Longer term, New Machines vs Rebuild Machines, Different Share Ratios, etc.

My challenge in evaluating just the $ aspect of the proposals is determining what utilization rate for the machines will be for a property of this size. Assuming the building gets to 85% occupancy. I have to make some assumptions: # People / Bedroom & # Loads / Person / Week (or month).

Anyone track the utilization rate of the machines in their building; What is it?

How many people / unit are in your building?

Using the above, how many loads are done each week or each month?

What are reasonably numbers; 1.5 people per bedroom & 1 load per person per week?