Washer/Dryer - Coin Op?

Question

The house I bought and will be house hacking in came with a coin-op washer and dryer.  The dryer works like a charm, the washer....unless I can fix it, RIP.

I am thinking of keeping the coin op dryer for my tenants and buying separate ones for myself (electric is wired for different units, I pay for all water).

I'm unsure if I want to go with a coin-op washer, or even coin-op in general.  I'm doing some work to the rental unit with the goal of charging close to/at market rate which is somewhat higher.  I feel like someone paying a higher rent would be like "really, coin-op in what I'm paying here?"  Personally when I rented I was always rolling my eyes when I saw a coin-op machine in the building and felt like that was just an extra hidden cost into my rent.

Dale Stevens · Answer

One aspect that most people do not consider, is the increased water and sewer usage bills due to the laundry. Your income has to cover that, plus any maintenance to the machines, as well as your time to collect the money.

For a single pair of machines, a speedqueen could cost $1000 per unit or $2000. If you set it at $1.50/cycle, how much are you really making? THat CCR is low isn't it.

Melissa Kirchhoff · Answer

@David Santore - It probably comes down to your numbers? Is the added income you make worth it, or is the higher rent more than covering that (current use and future repairs/replace)? Also, what are your competitors doing?

I feel like that would be the only way to make the decision, it comes down to numbers and if everyone else is doing coin-op, you could pull it off even with the higher rent and probably no one would care. On the other hand, it might make yours that much better to not have coin-op and people might be more easily pulled your way due to that.

Personally, if my profits were enough to do it, I would go no coin-op for the reasons you're saying. It just seems classier and less for the tenant to worry about in this day and age where most people use cards and don't want to worry about getting rolls of quarters anyway!

Patrick Liska · Answer

I have 2 stacked units in a 2 family student rental ( 8 beds ) on one hand i wish i did not get them because i have been having to reset the machines ( have to have someone look at that) so in that sense i wish i didn't have them because of this maintenance, but if the Students lived in a dorm they would have to pay to do laundry and the local laundry mats are twice what i charge, it's more for convenience for them. the money i do get helps pay for the gas, water and the electric that the machines use as @Dale Stevens mentioned. i do not make money on them, but helps with the cost when the rental market is so competitive for student housing where this is. I think in a SFH that is a little different and i would not put one in there, even whether it is a regular rental or a  student rental with 4 beds rented out.

Jeff Watson · Answer

How much do you plan to make on laundry $10 a month??? Not worth the "cheap skate" image it would portray.

I would keep the units because commercial coin operated W/D are typically higher quality, and worth fixing. Just remove the coin part. They can trip the sensor manually and do their laundry.

We did this at an apartment complex we bought on 7 W/D's. Works well as long as you can ensure visitors aren't using them.

Mindy Jensen · Answer

@David Santore , you said "house" and house hack. I'm assuming this is an SFR?

If I was renting a room, I would not expect to pay for laundry on top of that.

Johann Jells · Answer

I'm having a similar debate for my 4 unit. I worry that people will be inconsiderate about usage, running partial loads while others are waiting, etc. Plus one tenant, the only legacy,  I wouldn't put past inviting friends in to do laundry.  There's a coin laundry literally at the end of the block, It's not like this is desperately needed, just another amenity I can add.

John Warren · Answer

Hi @David Santore

I have dealt with coin op quite a bit this year. I am not sure for a small multi that they would be worth the time, especially if you are getting high rent. They are quite a bit more expensive to buy on the front end (even used), and so you are less likely to want to replace them. Also, keep in mind that someone has to collect those quarters. I know this sounds like no big deal, but it can be a time suck once you scale up! I have put them into my 9 unit apartment building in the Chicago west suburbs, but I doubt I would bother putting them in a duplex type situation.

Evan O'Brien · Answer

Just my two cents - I house hack a SFR by the room with several college grad students. I have a coin op washer and dryer downstairs and they are great. No one abuses them/has friends over to do laundry like a free w/d would attract. On a good month, they generate close to $200. I am in NY, and having a w/d inside in the winter is always appreciated by busy grads who don't have time to go to the place in town, where it costs double. Good luck!

David Santore · Answer

Clarifying early, it's a two family - I live on the bottom and will be renting out the top portion.

I think I am going to go with keeping the machine, but disabling the coin part as @Jeff Watson suggested.  Since I'm living on site I will have an idea of how the machine will be used, and I don't want to have that "coin-op" image.

Washer/Dryer - Coin Op?

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