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?

[Adam Johnson]

We have coin ops in smaller buildings, so I am interested in hearing from others as well.  Do you have the ability own and keep up with your own machines? They aren't that expensive and, at least based on our experience, they are low maintenance, especially if purchased new.  Do you have someone (or can you) empty the coin boxes once per week and check on them? Will also need somebody to watch for cleanliness in the room a couple times during the week. In our buildings, we put it on the tenants to clean up after themselves.  This was an issue one time and we left a message on the machines that if they weren't used responsibly, they would be removed and they would be hauling laundry to the laundromat.  Problem solved