Laundromat, Coin Laundry and Laundry Rooms

[Ken Barrett]

There are various posts that discuss the pros and cons of installing Laundry Rooms in your buildings.

Should they be installed?
Pricing?
Repairs?
etc.

I have added some information to the posts but I thought it may be better to try and capture them in one place so someone searching can get a number of views and opinions.

[Ken Barrett]

Treat a Laundry Room like the profit center it should be.

Check your local Laundromats and see what they charge for the same size washer and dryer and then set your price at least 10% above that.

Why?

Convenience. 

Coffee brewed at home costs a few cents a cup but nobody bats an eye to drop $3 for the same cup at a drive thru.

Coke at a Convenience Store $1.20. Case of the same ones at WalMart $5. That's a lot to pay for them to cool it.

Treat the washer and dryers as "doors" and charge enough rent to cover investment, repairs, interest, utilities, profit.....See where we're going.

Worst Case: Nobody uses your washer and dryer. You have the initial investment, no expense and no income.

10% of Tenants Use Machines- They are available when they want them. You have reasonable wear (similar to your home machines), utilities are covered (less then 20% of vend price), repair/replacement factor covered, profit covered.

50% Tenant Usage- All of the above with more profit.

100% Tenant Usage- Gut one apartment and make it a Laundromat.