Laundry

[ikedunne]

Does anyone really consider on-site laundry as additional income stream or do you just consider it a sales tool.

I'm inclined to look at it as paying for itself so no real income.

Thanks

[JaredfromIndiana]

I guess in my opinion it doesn't sound like a money maker if you are talking duplexes/triplexes.  Now if you have an apartment complex I know there are companies that will bring in washers and dryers and pay you "rent", and that way if something goes wrong with the appliances it isn't up to you to fix, just call em!  My two cents.

[ikedunne]

In this case they're part of the building I'm looking at.  I'm guessing $2000/year in gross income...less than 2% of the total gross rents

Seller wants to make it seem like a money maker. 

[hart]

I own a 12-family (mostly 1-bdrms) with one washer/one dryer.  The units are leased through a company who does all the maintenance and takes 50% of the profits.  I get a check once a quarter.  It's convenient, but I have no idea whether I'm really getting what I should in $. 
For me - right now- it's definitely more of a nice feature for the tenants.

We're actually in the process of buying two refurbished washers and dryers for a good price and are going to take a stab at it ourselves.  I've heard a rough number of $15-20/month/unit - but I'm sure that's a very rough average.

[Frank Chin]

I gave this issue some thoughts through the years.

I lived in an apartment rental when I first married, and owned condoes that I rent out that has laundry rooms. It's got it's upsides and downsides depending on how well kept the laundry room is, whether the landlord allows washer dryers, and safety issues.

When I was a tenant, the wife often asked me to walk her to the laundry room late at night for safety reasons. There was only three washer dryers for a complex of over 60 units, so we often wind up going to a local laundromat where we know there's usually machines available, as the laundry room machines are often in use.

As for the condos, we were advised the laundry room was a net liabilty because of the lack of use, for safety and convenience issues. My tenants, and my sister who owns a unit there and manages the condos for me, use their own washer dryers, as most people do not feel safe going to the laundry rooms, available on alternate floors.

When my sister was a tenant in a large apartment complex, the safety issues were such that tenants there sneaked washers in despite a ban on it. My sister had an accident once where her washer sprung a leak, and they had a major flood downstairs. Building personnel was knocking on her door, and she told them to come back, saying she's taking a shower, while she wheeled her washer backed into the closet, and cleaned the place up.

With safety a major issue, I often wonder if it makes sense for me to take on the headaches of maintaining a laundry room, versus the risk of someone being robbed, falling down on a wet floor etc. After all, how much can you make on it, versus the cost of one lawsuit??

[motivatedceo]

I'd say YES to adding a coin laundry, either your own or outsourced, if you (a) have the space & hookups [and/or can justify installing the hookups, which does take $$$] and (b) have enough units to make it worth your while. And also add snack & coke machines - but outsource those services [it can be a big pain in the but IF you are not familiar with vending] and just take a % of the sales. Maximize your revenue opportunities... even the small ones. And hell, if a 3rd party is doing all the work, it's very passive.

[smashmouth]

Does anyone really consider on-site laundry as additional income stream or do you just consider it a sales tool.

I'm inclined to look at it as paying for itself so no real income.

Thanks

it should be looked at as an income stream and a sales tool.

In my humble personal opinion, coin operated washer/dryers should aways be put in, in most circumstances.  The exception would be if you are flipping and turning over right away. Otherwise, spend the $1200 for a brand new coin-operated washer/dryer. You'll make your money up in no time.

Also, if it breaks down, you just fix it yourself or call someone to do it. Just like you would for a tennant's dishwasher (although you don't make money on their dishwasher).

Just be sure to take care of any safety issues, as mentioned before.  Don't pay someone to take 1/2 of your money.  Unless you absolutely have no time to pick up your money on a regular basis.

thanks,
-Rich