buying a coin op washer dryer

[JasonPA]

I am in need of a coin operated washer and dryer for a building with 10 apartments. Sears sell a pair for about 1100$, will lower priced machines last for a while, I know that commercial grade machines are very expensive. Great site!

[Dan Auito]

Stand by Jason, I'm rounding up the experts to give you the definitive reply :whistling

[secoon]

Jason,

The Sears machines would be the lowest quality that I would buy for 10 units. Depending on the makeup of the units, those machines could be running 24/7 so a low end pair isn't going to cut it.

You might do better, initially, to find TWO sets of high quality used machines. Check with small, independent appliance dealers in your area for availability.

Sean



I am in need of a coin operated washer and dryer for a building with 10 apartments. Sears sell a pair for about 1100$, will lower priced machines last for a while, I know that commercial grade machines are very expensive. Great site!

[Nancy (MI)]

Did this building have coin operated machines before? Have you been in business where your other rentals use coin operated machines? I ask you this because there is a lot involved in putting this into place.

Hubby and I have a 4 unit apartment building (among other rental units) and have thought of putting in coin operated machines. However, many thoughts came to mind such as vandalism, law suits regarding torn clothing.

We decided it wasn't worth it to us, but then again this unit is only a 4 unit complex.

Just a thought.

Nancy (MI)

[JasonPA]

I bought the building about 1.5 years ago and it had a coin op washer and dryer in it. The dryer control panel was pryed open and the cam was bypassed for over the last year giving the building free drying, the washer was fully in service but recently a bearing went out in the motor. Vandalism is a concern, that is why I just let the dryer go for so long.

[Aldo]

Jason, I've had coin laundry machines in several properties for at least 15 years and have never bought a new machine. Locate a local vendor that leases equipment and inquire about purchasing used machines. Because that is their business, their machines are usually well maintained. My most recent purchase was 4 machines (2 of each) for $1150. In my 15 years I had to replace one machine and needed 2 service calls. I doubt you would do better with new machines.

[Just Information]

This can be a great resource to adding to your positive cash flow when dealing with rental units, but it does have it's draw backs.

When you provide a service such as this, you will also assume liabilities as well "Damaged Items" or the "Claim of damaged items". You should insure to protect yourself.

You should maintain your equipment daily and you will lessen your liability greatly.

You should add a no liability clause in your rental or lease agreement!

That the use of laundry equipment and it's facilities are at the risk of said tenants as stated on this contract and the property owner and or property managers or the like of assume no risk or the liability of use.

You should set up use rules in the contract and post them as well.

[Aldo]

With all due respect, JM, I must question your experience with on-site laundry facilities. In 15+ years of providing this amenity, I may, just may, have spent $5.00 to reimburse tenants for damaged clothing and/or lost money due to a machine malfunction. IMHO, you are suggesting something similar to 'loss of rent' insurance to the owner of a vacant lot.

[Just Information]

It's just the facts, the more the amenities you provide your tenants the more liabilities you will assume as a property owner.

I will agree with on one fact if you have a small rental complex the loss you would experience would most likely be minimal at best.

When you are dealing large multi units the risk are great.

No need to attack my experience! You know nothing about me!

Your statement of 'loss of rent' insurance to the owner of a vacant lot. No need to get ridiculous!

You were simply thinking small rental units and I'm thinking large rental units - I suppose it's just the difference of what level of investing one is in.

[Just Information]

So that folks understand,

I do know a few things about landlording and as a professional I seek after knowledge from other professionals in the industry. In addition, I prefer to seek knowledge of those who have greater holdings than my self as I can emulate their success to take me to a greater level success.

The following two articles may help in this current subject posting.

http://www.housingfinance.com/housingreferencecenter/Laundry_Room.html
http://www.housingfinance.com/aft/articles/2003/September-October/Energy_Update.html

As a landlord, I have found that Apartment Finance Today to be one of my best guides in multi-unit management at http://www.housingfinance.com/aft/

It's easy to assume one may have greater knowledge but when one thinks they know everything or knows more than another they just fool themselves.

I would suggest no matter how much you know as an investor, leave your self open to learn from others, seek after knowledge continually and you will be surprised at your own level of success.

[John@TheLPA]

Hi Guys,
Just wanted to mention that my management company partner invested in coin op machines to put in all his 2 and 3 family homes. The idea being to offer the laundry option to tenants in apartments who would otherwise have to go to the laundromat.
Well, it was a huge success. The tenants love the luxury and appreciate it and boy do those quarters add up fast!

Of course, the tenants assume full risk in the lease to use the machines. And like anything else, repairs are required sometimes but rarely. But then again, each machine is like an employee, an income producer. Who wouldn't want to fix it immediately so it can keep making money?

JohnMichael has a valid point about assuming more liabilities when you offer more amenities. Sometimes I wish we didn't include dishwashers in all our rentals. The more amenities you offer, the more to fix in the long run.

John
www.theLPA.com (http://www.thelpa.com/)

[Aldo]

Based on my experience, I don't see the value of coin-ops in anything less than a 2 Bdrm four-plex. I had a 2 Bdrm 8-family with coin-ops where the machines grossed about $100/mo. That barely met my requirement of a 5-year payback. If you are profiting in a 2- or 3-unit, I'd like to know your secret.

[Dan Auito]

I would also look at the macro side and say, hey wouldn't folks appreciate this feature and pay $5 more in rent each month, maybe stay longer or choose my rentals over another that didn't offer this option. This may reduce vacancies as folks don't have to leave home and expose themselves to the laundromat crowd, not to mention the inconvenience of hauling your dirty laundry out in public and having to sit around some soap suds joint while it goes through the cycles.