laundry machines/washing machines

[Maxwell Wuensch]

This is really random but what are some tips on washing machines/ dryers for a multi-family property? i know it is a good way to create extra income and i’m just curious if anyone has any insight on the topic

[Kurt Snyder]

Hey @Maxwell Wuensch,

I'm curious to see if this thread gets more traction as I've been wondering the same thing. It seems to me there are at least 3 options:

1. Buy (new or used) typical residential Wash/Dry and equip them with coin boxes, cards, or app payment devices. This allows you to control the purchase price pretty reasonably and collect 100% of the profit. It also means you must maintain the unit, collect payments yourself. This option seems labor intensive and if you are concerned about the aesthetics of your "community laundry" this option is probably not for you.

2. There are providers that will sell you nice laundromat level equipment which come with a card reader, coin boxes, or app payment options integrated into the machines. They typically also come with the ability to "cash-out" remotely and manage the machines from anywhere. The downside is this is an expensive initial investment. The profit will be the same as option 1 but the aesthetics, and longevity (they typically come with service agreements) will be superior. If budget is your concern this is going to be a no-go.

3. The last option in my estimation is similar to #2 in that these companies typically also offer the ability to pay zero initial or ongoing costs if you allow them to split the profits with you. This option is great if the primary reason for installing the laundry center is to offer tenants amenities that will, in theory, decrease your vacancies. The big plus side of this is that you don't do anything but collect profit, albeit shared profit but profit nonetheless. The downside of course is that you will sign a contract (1-10yrs).

I'm curious if there is a 4th opting I missing and if anyone else has any actual experience with any of these. Currently, I am leaning toward option #3 for all our buildings as I'd rather maintain our current cashflow and mitigate future vacancies. Looking forward to what you find out! 

[Maxwell Wuensch]

@Kurt Snyder, thanks for your response man! I was just curious about this because it’s one of those things that you don’t really think about until you have to and i’ve heard about coin operated machines in multi-family units but what concerns me is the practicality of that. Obviously that’s been a system that has worked for people but I feel as though that would become annoying. An idea I had was similar to what you said in option 1 which was buy new or used washers and dryers for each unit and just include that as a bonus feature to the unit that i’ve provided for the tenant, i’m guessing there are also some tenants who already have their own washers/dryers and wouldn’t want that added cost so providing it as a “added bonus” gives them an option and makes the unit more enticing. My question is would you be allowed to add that cost in with the rent if ur rental rate is already at fair market value? I still feel like tenants would prefer this method over using a coin operated machine because that doesn’t necessarily make anyone feel at home if every time they want to wash their clothes they have to remember their quarters. I appreciate your input.

[Maxwell Wuensch]

@Kurt Snyder, I think in order to make this method work though, it would be important to run the numbers and see what people would normally be spending on a coin operated machine system every month and then analyze what an appropriate added monthly cost number would be. This would eliminate the intensive labor concern for the landlord and the tenant would have access to their own washers/dryers, and having each tenant pay for their own water bill would eliminate the landlords concern of a tenant over using the machines and running up the water bill

[Taylor Ferrell]

@Maxwell Wuensch and @Kurt Snyder thank you for your input on this. I'm under contract for an 8plex that has a non-functioning common laundry area. Each unit does not have their own hook-ups so the tenants are currently having to use offsite laundromats. I am trying to figure out a solution to get the space up and running again to add an additional amenity for the tenants along with revenue stream for the property. 

[Maxwell Wuensch]

@Taylor Ferrell, good luck! let me know what you figure out so i can learn from what you did. i

[Jill F.]

I bought residential machines in a bed bug emergency and am currently looking at shine pay for app payment system to hopefully recoup my operating costs. There is a bigger company, Payrange, that provides an app solution for coin op machines (but not for residential machines) with no upfront equipment cost. I have not pulled the trigger yet because I have so much going on but plan to give shine pay a try soon.