Laundry Room

[Mark Vieira]

I recently bought a 14 unit garden apartment value add deal and currently am trying to get the laundry room situation dialed in. The current laundry room is small and can only accommodate (1) washer and (1) dryer. A couple of the units have plumbing for washer and dryers but I plan on safing all of that off as I go and remodel each unit. I pay for the water so it doesn't make sense for me to let them do that in unit anymore.

I have a proposal from WASH to install the units, maintain them, and then give me a check for 50% of the gross every month.

- Is this a good deal for me and comparable to what other companies could offer me? I am self managing from 2 hours away so I do need someone that can handle the laundry and collect the money as opposed to doing it myself.

- Has anyone had experiences with WASH and can share how it was?

- Any other tips, tricks, or pitfalls as I gear up to sign a lease with these guys? It's either a 3 or a 5 year lease term...

[Bill S.]

@Mark Vieira a number of people I know say that the companies that rent machines to owners are terrible. When the owners finally did it them selves the machines seemed to make more money (the conclusion being that someone was skimming). The contracts are completely one-sided (toward the washer company) and its nearly impossible to get out of them as they keep rolling over. If you are doing a value add then buying and managing them yourself will return the most to your bottom line.

As for washers and dryers in the unit vs in-house laundry. In my market, that is worth about $100 more in rent per month to have the w/d in the unit. The value to the property depends on the class of tenant that the property attracts. A and B and upper C tenants have the money to pay extra for rent and not to have to share laundry facilities. You should do a market analysis to determine what is best in your market. The cost of water and the machines may be more than offset by increased revenue. If the units support the individual washers and dryers. I also rent them out for $30 per month per pair for extra revenue. If the setup is for a stacked unit then I've been unable to rent them out separately.