Common Area Laundry Rooms - problems or amenity?

[Michael Calderaro]

First, why did I post this blog in this forum?  Because gentle readers, a laundry vendor is a commercial tenant.   And the reason they are commercial tenants is because if you signed a contract, as it is called, it really is a "real property lease".   

Commercial laundry vendors invest capital to purchase equipment, provide service, collect and process payments and for that they want to ensure their "real property leases" convey should the property flip.   They do not sign a "service" agreement or a "License" both of which can be cancelled.  As you know by now, a real property lease conveys with the land.

Similarly, I can't tell you how many times I got a call from a new owner saying "Your lease isn't valid because I didn't sign it."....my response was to gently ask them to show the lease to the counsel and ask them the same question.   It's valid and it conveys just like all those apartment leases from the individual units you acquire but did not sign.  

Now, onto the challenge: Problems or Amenity?

Without a well written lease that spells out performance metrics, protects your payments in a timely fashion and ensures the lease doesn't automatically renew or have other onerous clauses the laundry room can be an amenity.

How?  Consider technology.  Today machines can be equipped with coin as well as digital payments like Apple Pay or Samsung Pay - it works off a Bluetooth connection and is a modestly priced upgrade to a laundry room.   

Is the laundry room safe?  Is it well lit, clean, freshly painted and sanitary?  If not, you're likely not showing it to prospective residents.  

If you have to compete with other properties that may have in unit connections, a laundry room that accepts digital payments, is clean, safe, well lit and with properly maintained equipment can attract and retain residents.

I welcome your comments, questions and remarks.  Thanks for reading!