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How Landlords Make Money From Coin Op Laundry Machines

Written by Posted On Monday, 26 June 2017 23:36

Whether or not to install coin operated washing machines can be a hot subject of debate among landlords. While there are obvious perks, namely the added income, some wonder if the machines won't just end up being more of a headache than an added source of income. If you're on the fence about whether or not your property could benefit from these machines, here's what you need to know.

Don't Bother In Small Units

Coin operated machines generate a profit when it’s being used by a lot of people. Remember, washing machines have operating expenses. If you have fewer than four units in your property, you're not likely to make a profit and you might not even break even. Invest in the high-quality commercial washing machines. Buy from the well-known brands like LG, Electrolux or Maytag Laundry Commercial. The products from big brands tend to be more durable, easy to maintenance and energy-efficient. They can handle a heavy workload.

However, that's not to say that putting a washer and dryer in your property is a bad idea. Actually, an on-site washer and dryer can make a property more intriguing to renters. All you have to do is Google "how much do laundromats cost" if you want to see why. If you charge tenants water and electric, that new Maytag washer and dryer won't come at any profit loss to you and your building will be more appealing to prospective renters.

How To Generate A Profit From Coin Operated Washing Machines

There are two ways that a commercial washing machine helps you to generate a profit. First, there's the option to lease a machine. This is the best option for a mid-size building. You will split the profit with LG, Electrolux or whatever manufacturer with whom you choose to work. The benefit of this is that you have zero upfront costs and you're not responsible for maintenance. Essentially, this is just pure profit.

However, if you have a large property, it's typically a better idea to invest in your own machines. Although they can be pricey and maintenance can certainly mean added work, these machines have the potential to generate quite a bit of income on large properties. It's essential that you know the rates of nearby laundry mats and price your machines at slightly lower than that to ensure that your tenants do their laundry onsite instead of at a neighboring facility.

Added Moneymakers

 The potential for income in a building's laundry room doesn't stop at the machines. Consider installing a dispenser that sells soap, fabric softener and dryer sheets. Sure, many of your tenants will bring their own products and you can't exactly forbid them from doing so. However, you'd be surprised at how much use these dispensers get. Plenty of people forget to buy detergent but need to do their laundry that day. Plus, these machines are pretty inexpensive to purchase and stock. They require little to no maintenance and are an easy source of passive income.

A laundry room is also the perfect place for vending machines. If you've ever been to a laundromat, then you know that they're usually loaded with vending machines. That's because people are stuck there for two hours and they're likely to get thirsty or hungry. This is why it's a good idea to make the laundry room in your building a hospitable place. Install a TV, ensure that there's a WiFi connection. You want to encourage your tenants to want to wait with their laundry, thereby encouraging them to use the vending machines.

Going Above and Beyond

 Those who own expensive properties might want to consider working with a local dry cleaning service or laundromat to offer tenants laundry services. Although it can be tricky to hammer out a contract with the right business, you can take a cut of the profits for bringing customers to them. Of course, this will only be a popular service with those who rent to a lot of professionals and business people.

 You can also consider investing in the most environmentally sustainable laundry machinery and in-unit washer and dryers for your units. Of course, this is going to be a huge initial investment. However, you can dramatically raise the price of rent, especially in higher priced areas. An in-unit washer and dryer is a huge selling point when people are looking to rent luxury apartments.

 Any property owner should always be looking for opportunities to make additional income through their properties. No, you probably won't get rich through the detergent vending machine in your building's laundry room. However, these little added sources of passive income really start to add up over time.

 Remember, your rental properties are a business. Never feel bad about looking for additional ways to make a profit. After all, you're offering your renters services that makes their quality of life a whole lot easier. No one wants to use a laundromat if they don't have to; indeed, it's so much easier to be able to just do your laundry in your own building.

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Sarah Smith

Sarah works with many real estate business owner to upskill their current license to further their employment prospects. 

https://propertyinvestmentwise.com.au/
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