Originally posted by @JR T.:
Was the revenue for the coin laundry gross revenue for 12 months for a 31 unit building? Do you happen to know how many machines they're operating? Thanks for that, it's a useful data point. I've been considering putting some coin op units into my multifamily buildings, but I haven't seen actual numbers (including yours) that suggest there's any worth to this idea so far. Thanks in advance for the additional info.
My best thought about this is I wouldn't be so quick to fire the maintenance guy who works for his rent. This guy probably knows the place inside and out. I would keep him through the transition and see what he's like to work with. These sorts of folks are often way more valuable than an employee you're paying a crapload more money to have who clocks in and out, takes their breaks, etc. Nothing wrong with that, but the live-in types typically make that place their life. He might have more value than you initially saw, but probably doesn't know how to show that to you except by doing a good job.
The others are definitely gone, rents need to make it to market even if it means turning over some of the tenants (prudently with a strict eye on vacancy control). My main concern is what is your explanation for the high vacancy with below market rents situation? Something isn't right there - either you're not right about the market rents or something else is keeping people away from there - what?
The laundry is 12 months for a 38 unit building. I will have to count the machines I dont remember off hand how many. I'd guess it was something like 6 and 6. I actually completely agree with you about the onsite maintenance guy. I told my friend he is probably the only one worth paying what he is getting at least in the short term. I have a very strong suspicion that the "book keeper" and the offsite "maintenance" person are taking advantage of the owner's trust.
The high vacancy is a two part problem. They have roof problems on one of the buildings and several of the units were vacant because of the leaky roof. They have fixed the roof issue. The other part is that the current manager is literally just collecting a pay check and is never onsite. Even the extremely limited office hours she has posted she is rarely around. So the current tenants are not the desirable type and they probably tend to deter new better tenants. So someone comes in and wants to rent they are in if they can post a deposit and the rent.
