Coin Operated Laundry Machines

[Bruce Ellerd]

Hello Albuquerque BP Community,

I have a small complex here in Albuquerque and am planning to put in some common-area laundry machines for the tenants. I'm considering going with coin-operated machines, but don't know of companies here in Albuquerque that do that or what to expect for cost/sharing of revenue. If you have any information about this please let me know :). 

[Jeff Bridges]

the major players nationally are coinmach/ mac gray. Local player for you is martin Ray, CPEC, and clean designs.  I would get bids from each of them and see which offers the best terms. Try bidding them against each other to improve your terms further. I think the best you can do is a 60/40 split of all revenue in favor of the owner with free maintenance/ repairs, with free leased machines for duration of contract. More typical is a 50/50 split, free machine leases for duration of contract. Typical contract will be 5 year term with no automatic renewal and option to cancel at any time after that initial 5 year term. Some will pitch 5-10 years in their contract depending on terms. These are always negotiable and try for as short as they are willing to go. They will either offer refurb machines or brand new ones. They will cover repairs for each type anyway so I don't think it matters as long as the refurbs are less than 3 years old. I think doing a leases machine contract with revenue split like above will be the best use of your time. They do coin collection, repair response, send you a check with your cut monthly or so and its all hands off. You stand to make more money up front for buying machines and collecting your own coin, but the headache of repair requests and costs of clearing the money from machines means you'll break even on those costs or they are a bigger headache than you want to inherit.

READ the lease very carefully and ask them to change clauses that you are not comfortable with and that tend to favor the laundry company.  better yet, share the terms with the BP community and we'll let you know if those terms are good terms or if you should shop elseware or push back. Feel free to PM me a contract if you want me to take a look at a proposal before you sign.

http://www.cpec-laundry.com/

https://www.cleandesigns.com/

http://martinray.com/

good BP blog reference:

https://www.biggerpockets.com/renewsblog/2006/11/0...

another good reference for negotiating leases:

https://www.aoausa.com/magazine/?p=3168