Multi-Housing
Laundromat
On-Premises
As a multi-housing property owner or investor, adding a shared laundry room can be a lucrative decision. Not only does it provide a valuable amenity for your tenants, but it can also generate a steady stream of additional income.
Let’s walk through how to estimate the income potential and discuss what variables to consider.
Calculating the Income Potential
At Coin-O-Matic, we follow a simple formula when helping our customers determine the income potential of a shared laundry room in an apartment or condominium. On average, we estimate about one cycle per bedroom per week.
Total Bedrooms x (Wash Vend + Dry Vend) x 4.3 = Monthly Laundry Room Revenue
Say you manage an Illinois apartment complex with 50 two-bedroom apartments. It’s $1.50 to wash and $1.50 to dry. At full occupancy, it would look something like this:
100 bedrooms x ($1.50 wash + $1.50 dry) = $300.
Now, take that $300 and multiply by 4.3 (the average number of weeks in a month).
On average, your laundry room will generate about $1,290 per month in revenue.
Factors That Impact Multi-Housing Laundry Room Revenue
While the above estimate is a good starting point, it’s simply a starting point. Property owners must consider a number of other factors when evaluating laundry room revenue.
Tenant Demographics
Your tenants may have different laundry needs and preferences. For example, a young professional is likely doing fewer loads than a family with an infant, despite both living in similar two-bedroom units. Some college students may also take laundry back to their family home rather than doing it on-site.
Occupancy Rates
Consistently high occupancy can significantly boost your income estimates. However, if you frequently have vacant units, frequent turnover, or need to close a unit for extended remodeling, you’ll see less money coming in.
Cost per Load
How much you charge per load plays a huge role in overall profitability. If you charge too much, residents will likely opt for a nearby cheaper laundromat. Research local laundromats and other multi-housing properties to set a price point that balances affordability for tenants and profitability for you.
Additional Fees
Consider if you'll charge extra for cycle upgrades like additional rinse cycles, hot water, longer dry times, or newer machines. You may also sell detergent or other vended items on-site for extra revenue. These extras can help boost profits while allowing users to personalize their laundry experience.
Equipment Costs
The cost of the equipment itself is obviously something to consider.High-quality washers and dryers may have a higher upfront cost but lead to lower maintenance costs and higher tenant satisfaction. Coin-O-Matic offers competitive laundry equipment financing that aligns with your budget and laundry needs.
Equipment Maintenance and Repairs
Factor in regular maintenance and potential repairs. These costs can vary, but budgeting about 16% of gross revenue is a good starting point. We offer ongoing laundry equipment workshops to help train you to do some routine maintenance on your own to minimize costs.
Payment Systems
Modern laundry payment systems like card payments or mobile apps can increase usage by offering convenience over traditional coin-operated machines. That said, be aware of any transaction fees associated with digital payment systems.
Operating Costs
Water and electricity usage can significantly impact your bottom line. Energy-efficient machines can help reduce these costs. On average, utility costs are about 10-15% of gross revenue in the Midwest area we serve.
Miscellaneous Supplies & Expenses
You may also need to factor in additional expenses based on your specific property and shared laundry room. Making the shared laundry room more inviting and welcoming can pay off in the long run but requires some upfront costs. These could include:
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Cleaning supplies
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Security equipment and features
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Furniture and decor
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Signage
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Staff to maintain, clean, and operate the space if you’re not on site
Work With Coin-O-Matic to Improve Laundry Profitability
Whether you need new commercial laundry equipment or you’re looking for ongoing maintenance and support, Coin-O-Matic is here to help. We’ve been working with Midwest multi-housing facilities for 100+ years, providing the latest in laundry equipment and technology from Speed Queen, Maytag, and more.
We’ll help you design your shared laundry room in your facility or take all aspects of the laundry process off your plate with our Revenue Sharing Program.
Coin-O-Matic serves multi-housing facilities throughout the Midwest, including northern Illinois, Indiana, Wisconsin, and Michigan. Contact us to learn more.
Tagged: Multi-Housing Laundry
