Coin Ops profitable for you?

Question

Generally how much are you taking in a month....  Thinking of upgrading a 3 family I have, but with the coin ops and electrical work, I'm figuring about 5k total to get going.  Trying to gauge if its worthwhile....

Bill Thompson · Answer

I have the above setup in four of my MF properties that collectively yield between $400 - $600 per month. This equates to about $100 - $150 per property per month.  How much you make depends on the type of tenant... my buildings that have tenants with kids yield a lot more than the ones without.

Operating expenses are very low because I use gas dryers (instead of electric), tankless water heaters for hot water, and high efficiency, front load washers to save water.  I've only had to call for repair twice in my eight year history as a landlord.

I chose to buy and install new equipment when I purchased my properties.  I've already recouped my initial investment via coin money.  Now everything I get from those machines is "gravy"...  just got back from a 10 day vacation in Hawaii paid for entirely with quarters... lol

Bettina F. · Answer

We make about $60 bucks a month on our coin ops in our 6 plex.  Our tenants also each have a "laundry alcove" with  washer and dryer hookups and a scissor gate. Currently only two residents have washers and dryers, the others just use their alcoves for extra storage.   We bought the coin ops used, as most laundromats in our area are going to card systems.  It is not a profit center, it is a convenience that helps our building be more competitive.  We spent $1400 on 2 used commercial washers and 2 dryers.

David K. · Answer

The 3 unit building I have barely gets any use out of the coin op....then again there's a laundry mat 100 yards away, so I figured I'd bring this to the forum!  Thanks for the responses.

Seth Borman · Answer

Like most everyone else, we view the coin laundry as an amenity rather than a profit center. After repairs and expenses they tend to break even. We are working on a new building now that will have a W/D in each unit as that will drive rent.

Wade Sikkink · Answer

We have a 14 unit building with a laundry in the basement.  It brings in about $2500 per year and over the last 4 years we've spent probably $1000 maintaining the machines and $800 to put in a new water heater that was 15 years old.  Dryers and are gas and the laundry uses very little electricity.  Overall a money maker and also a nice draw for tenants as there is no laundromat in this town.  We charge $2 per load, which is the max the machine coin slot can accommodate.

I'm not sure it would be as profitable on a smaller building, but might be worth it if you could buy used machines.

We're thinking of adding a vending machine down in the laundry room as another revenue source.  Need to find a used one to try it out.

Francesco G. · Answer

I think you best bet on a smaller sized multi-family in this case is to allow tenants to connect their own washer/dryer for a fee or just charge slightly more rent for the convenience rather than buy coin-op machines.  The fee/increase in rent will cover the increase in water usage.  The tenant will be happy at the convenience of having laundry.  If you find that tenants in your area aren't able to purchase their own laundry units then you could purchase and lease them back to the tenants as another option.  I have two fourplexes where I allow the tenants to bring their own machines.  I'm not responsible for them and i'm able to charge slightly higher rents for this added convenience of allowing them to have machines on the property.  Having more amenities or allowing for laundry/storage without an additional charge has enabled me to get better quality tenants in my neighborhood compared to some of the other properties nearby.  It also helps keep them around longer with less turnover since they're less likely to want to move.

Deanna McCormick · Answer

It's a Plus for your tenants.. would I want to lug laundry down the block or down to the basement.. your tenants will stay longer, and you'll rent the units out quicker.

overall original start up on anything is a cost consideration.. call around for quotes on lease options.. ask if they have used machines for sale ... check craigslist for used machines.

Chad Hale · Answer

My strategy is not to make money per se on the coin ops, but part of the overall housing package that I provide to the tenants.  You'll make far more in maintaining good units and giving appropriate yearly rent increases.

Some multi-units own the equipment others rent.  The benefit of renting is all maintenance/repairs are included.  A step closer to passive management.

Patrick M. · Answer

Like @Bettina F. we are installing coin-ops as a convenience, but unlike Bettina we are doing it because we remove the washer dryers upon vacancy/renovation. It will have the added benefit of reducing water costs while also off-setting them. (I pay +$4k in water yearly at each building).

William Robison · Answer

The machines only hold so many quarters.  Consider also who will be collecting those when its full and the value of that time.  We spend $20 in labor to collect $50 in quarters...sometimes.  There is also Jetz Laundry.  Search BP for them....its a horrible solution.

Coin Ops profitable for you?

Most Popular Reply