Multi family coin op laundry Qs

[Brendan Reilly]

I have an old set of whirlpool coin op laundry machines at my recently purchased multi family.  based on the model number they are from around 1991 and the washer has had its second issue with the coin slide that renders the whole machine useless(the actual coin slot itself broke from the slide and I had to rig it to work last time since I can’t seem to find parts).

So now I have a dilemma with more variables than just an inop washer.

The washer/dryer prices are currently 1.25 and 1.50 since I purchased the place (can’t find additional coin slots ) and even if I found them the slots max out at 2.00 a machine (which appears low based on local laundromat prices). 

Do I

1. Keep working to find a fix(maybe another coin slide variety will fit?) to salvage these old machines from 1991?

2. Cut my loss on the washer, get a new one and use the working washer coin slots to bump up the dryer price until it breaks and warrants replacement? 

3. Cut them both loose and replace with newer machines?

[Pat L.]

We looked into these...

https://www.mqtekindustrialsup...

...but decided to just raise all rents & supply free washer dryer use with new scratch & dent appliances. We sold the dinosaur coin-op units. The tenants are happy & we haven't seen any abuse YET!!

[Dennis M.]

People will resent you everytime that load coins in those old inefficient terds . Just bump the rents up and get a normal used set . If they fail you can just get on Facebook or Craigslist and replace them for 100 bucks 

[Kenneth Garrett]

@Pat L.and @Dennis M.

How much per unit did you increase rents to cover the w/d cost.

[Dennis M.]

25 bucks if it’s family ,if it’s two 50 

[Pat L.]

One unit (family of 4) went from $675 to $775, (we also installed a dishwasher for them), others went up $45, $50 & $125/month (they just moved in). Another went to $995 from $875 but they have an ensuite washer with a gas dryer.

Our water bill is up an avg of $40/month. But last year we rented out the barn & office area for $700/month & that included electric, so the electric dryer isn't the main reason electric increased by $125/month. If I could run a gas line safely to the 2nd story laundry room dryer I would, but its not worth the expense & aggravation.

[Brendan Reilly]

My other issue is that the rents are already below market, planned on a 2 year $50 a year increase to get closer to market. These are long term tenant(10-20ish years for 4 out of the 5) I’m kind of worried about spooking them by jacking the monthly too aggressively, justified or not.

[John Casmon]

Just get new units. The money you save on fixing it will be offset by the time you waste searching for and coordinating the fix. Newer washers and dryers are more energy-efficient and can save you money on your utilities than the old units. Plus, it will be more appealing to residents.

[Bjorn Ahlblad]

I replaced the old washer and dryer in my 12 unit with brand new last year. I had to put up a sign to use 1/4 the amount of soap the old washer used. Too much soap in a new machine can result in a service call. Now the tenants use Pods. The tenants keep the room clean and set up schedules; prices are set at 1.75/ea. it brings in 280-320 dollars per month gross which meets my criteria easily. There are videos on youtube showing how to change charges per use etc.

[Brendan Reilly]

Good point, the new stuff is apparently more efficient all around. What made you decide on $1.75? I visited the laundromats in the 3 nearest areas and for a typical wash it’s $3.25-$4.25, I was thinking setting it to $3.00 to maximize profit but show I’m not gauging either. 

[Greg M.]

30 year old machines? You've got to be kidding to think about repairing them. 

I'd get new energy efficient ones that are also large capacity. If you don't want to be bothered collecting the quarters, they can be set up to take credit cards or debit a prepaid account that you can set up with the tenants. Or you could also set the rate in flat dollars and have it only take dollar bills. 

If you don't want to buy new units, or be responsible for their maintenance, or deal with collecting the money, there are many companies that will install them for you at no cost and split the proceeds with you. They will have a very good idea of what the market rate is for each load. It also absolves you of liability if the machine damages clothes. 

Whatever you do, keep in mind that laundromats typically have large capacity machines, so if you price near them, your machines better have a similar load capacity. 

[Brendan Reilly]

very good points, I did make sure to compare apples to apples on size/price. I’m quite handy and could probably make a permanent fix to any aged machine if parts were readily available, that’s the only reason I considered extending their life. I was curious on price as there may be something I’m unaware of that makes it wise to price much lower than a laundromat. In my mind the exclusive nature and convenience of in building machines would allow me to set a competitive price, but am unsure if I am missing something.

[Pat L.]

"...These are long term tenant(10-20ish years for 4 out of the 5) I’m kind of worried about spooking them by jacking the monthly too aggressively, justified or not...."

We inherited tenants who were there 14 years. We simply doubled their rents & they didn't complain. But we did get them a new scratch/dent stove & dryer. Upgraded the 25 yr old furnace & then they offered to pay for central air to be added to the install. We did that & they paid it off over an 18 month period. They are still there 5 years later, but they were VERY aware of the local mkt rents & didn't want to move.

[Bjorn Ahlblad]

Originally posted by @Brendan Reilly:

Good point, the new stuff is apparently more efficient all around. What made you decide on $1.75? I visited the laundromats in the 3 nearest areas and for a typical wash it’s $3.25-$4.25, I was thinking setting it to $3.00 to maximize profit but show I’m not gauging either. 

1.75/ea is fair IMO. As long as the tenants make the rules and schedules, keep the room clean and I can stay out of it. 300/month (3600/yr) is plenty to cover all my expenses associated with water, premises, equipment etc. and make my profit goals. We collect 15 pounds of quarters once a month, on our regular visit to the building.

[Ola Dantis]

@Brendan Reilly

Get the new ones and send messages to inform all residents. 

What you are doing is sending a very good signal to the tenants that new management won't be cheap and is ready to make investments where necessary. 

So, when you raise those rents, it may be more palatable by the tenants. There are financial and psychological benefits of getting new ones. I know it sounds weird...

[Joe Splitrock]

@Brendan Reilly coin op washer and dryer are designed to last for years and be easily repairable. They are built tough and cost more because of it. They are a great additional revenue stream. If you can keep them working, then great. Otherwise I would buy a new coin-op. 

[Russell Cazeault]

@Pat L.

Thanks for that link... I might get one for the kids video game console.

[James Wise]

Originally posted by @Brendan Reilly:

I have an old set of whirlpool coin op laundry machines at my recently purchased multi family.  based on the model number they are from around 1991 and the washer has had its second issue with the coin slide that renders the whole machine useless(the actual coin slot itself broke from the slide and I had to rig it to work last time since I can’t seem to find parts).

So now I have a dilemma with more variables than just an inop washer.

The washer/dryer prices are currently 1.25 and 1.50 since I purchased the place (can’t find additional coin slots ) and even if I found them the slots max out at 2.00 a machine (which appears low based on local laundromat prices). 

Do I

1. Keep working to find a fix(maybe another coin slide variety will fit?) to salvage these old machines from 1991?

2. Cut my loss on the washer, get a new one and use the working washer coin slots to bump up the dryer price until it breaks and warrants replacement? 

3. Cut them both loose and replace with newer machines?

Get new ones. Problem with the old machines is you can't get the prices up to a profitable level. Cut your losses and go with a coinless option. They are much better as folks don't break into them, damage them etc. On top of that collecting coins is costly and can make you or your employees a target.

[Russ B.]

Originally posted by @James Wise:

Originally posted by @Brendan Reilly:

I have an old set of whirlpool coin op laundry machines at my recently purchased multi family.  based on the model number they are from around 1991 and the washer has had its second issue with the coin slide that renders the whole machine useless(the actual coin slot itself broke from the slide and I had to rig it to work last time since I can’t seem to find parts).

So now I have a dilemma with more variables than just an inop washer.

The washer/dryer prices are currently 1.25 and 1.50 since I purchased the place (can’t find additional coin slots ) and even if I found them the slots max out at 2.00 a machine (which appears low based on local laundromat prices). 

Do I

1. Keep working to find a fix(maybe another coin slide variety will fit?) to salvage these old machines from 1991?

2. Cut my loss on the washer, get a new one and use the working washer coin slots to bump up the dryer price until it breaks and warrants replacement? 

3. Cut them both loose and replace with newer machines?

Get new ones. Problem with the old machines is you can't get the prices up to a profitable level. Cut your losses and go with a coinless option. They are much better as folks don't break into them, damage them etc. On top of that collecting coins is costly and can make you or your employees a target.

This. 

If you've got more than a couple units using the machines, you end up picking up big sacks of quarters every month or so, and then you need to do something with them.. And of course there's the problem of people breaking into them (it's amazing how hard some people will work, to steal a few bucks). 

Ones that don't handle cash make things a lot simpler 🙂