Is it worth it to own the laundry equipment at my multi unit property?

THE PROS Obviously, it will mean more cash. Instead of working out a split with a leasing company, the money all goes to you. This will  be a positive every month. It will also add to the building’s GROSS SCHEDULED INCOME should you decide to refinance or to sell. It can be difficult to track income with some of the providers of laundry equipment, but when you own, you just tally the quarters. Another advantage is that you can change your price when desired. Want to raise the washer or dryer fifty cents a load? No problem.

THE CONS Well, there are several here. When you own the equipment, you own it. I had a building several years ago where we had just purchased  new equipment and a day or so later, somebody used a slug with a rubber band (to get the slug back) and the whole thing got jammed, causing an expensive repair. Tenants can be tough on machines and when you own, the repair bills are yours. There is also the time involved to collect the quarters. Not a lot of time, but it is required. Most providers do offer card operated machines to avoid the quarters completely.

WHAT ARE YOU DOING NOW? I had a client who had a very good arrangement with a provider on his buildings (he had hundreds of units, but quite a lot of buildings) He decided to install his own equipment and is still doing it. He says the difference in income is about, 3 times what he was getting.

Although it may be tempting to add a couple of hundred dollars or more to your monthly bottom line, it involves some cash upfront and an expenditure of time. I have done both and tend to prefer owning, but you have to consider your time constraints and the location of your buildings. The cost of gas may eat up your profits if you have to drive a long way.

What we at PRS PROPERTIES CAN do for you, is give you an idea as to what other owners are doing with their laundry.  We could suggest providers if you want to get out of the laundry business. We can look at your profit and loss to see what owning laundry equipment might add to the value of your building. We can look at your building for other small changes could allow you to get a higher value than you may have thought. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We have many investors who are looking for “off market” properties and we have put together many, many transactions which involve properties that are not listed for sale.

We can also put together an aggressive campaign if you decide to put your property on the market. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.