Benefits of On-site Laundry for Apartment Buildings
For owners or operators of apartment buildings, adding an on-site laundry room to your apartment building or hotel (or updating your existing one) is an excellent way to boost your long-term revenues.
Though often conventional wisdom has suggested that in-unit laundry hookups are preferred, recent advancements in on-site laundry technology have caused on-site laundry facilities to boom in popularity. Many landlords are using their on-site laundry rooms as a major selling point for today’s renters and residents, as well as for hotels, gyms, and other facilities.
What is on-site laundry?
As the name implies, on-site laundry, in this context, refers to a facility that is in the apartment building itself. We’re using it to talk about a communal laundry room, as opposed to in-unit laundry hookups.
Generally speaking, on-site laundry facilities are coin-operated (although technology exists to accept cards or payment via smartphone apps). Landlords that offer on-site laundry rooms do so as an alternative to laundromats.
On-site laundry facilities increase rental value
If your building features a nice on-site laundry room, then your rental prices can justifiably be higher than a building that doesn’t.
According to the Multi-housing Laundry Association, “An independent nationwide study concluded that when residents are given the option of a clean, convenient, attractive and affordable laundry room, most would not pay more rent to live in an apartment unit with laundry connections, or even a unit with a washer and dryer provided.” There are a few good reasons for this. In-unit laundry:
Takes up space
Drives up utilities
Are not environmentally friendly
Costs residents more up-front because they need to buy or rent a machine
Because a well-outfitted on-site laundry facility solves all of these problems without forcing tenants to tote their clothes outside to a laundromat, tenants are generally willing to pay a higher rent for a building that features on-site laundry. In fact, a recent guide from RentHop included on-site laundry as a feature work paying more for, saying: “having a laundry room allows you to do your laundry whenever it’s convenient for you. If you work long (or odd) hours this is a huge benefit. You may have to start hoarding quarters, or just buying them by the roll at the nearest bank branch, but it’s a small price to pay. Plus it’s a great way to meet your neighbors!”
On-site laundry facilities increase property value
Not only do on-site laundry rooms justify higher rents, but they also make the building worth more in terms of property values. Forbes explains that when it comes to property value figures, On-site laundry room revenue is considered “other income” for the building:
“Other income” is sometimes a category both brokers and investors don’t really think about very much. It’s usually a catch-all for laundry, application fees, or bounced check fees. Many times landlords don’t even itemize entries in this category. Other income is too often considered just the gravy on top of the income from rent. The reality, though, is that if your building’s value is determined by a cap rate, other income can have a dramatic upward effect on how much your property is worth.”
Forbes concludes “other income can significantly boost your property’s value.”
On-site laundry facilities build community
Any building owner or operator knows that the best way to keep your property in the black is to keep units full. Apart from excellent maintenance and management, one of the best ways to accomplish this is to make your building a community. As RentHop said above, an on-site laundry room is a great way to do this!
In a recent article on Apartmenttherapy.com, Louis Adler of REAL New York is quoted as saying, “Having laundry in the building means you get to know your neighbors. I’ve even heard a story about a couple who met in the laundry room in their building and are now happily married.”
On-site laundry facilities increase revenues
In all of the ways we’ve mentioned, the biggest benefit of on-site laundry for apartment buildings is increased revenues across the board. If your on-site laundry room is equipped with top-quality high-efficiency equipment, you’ll save money on utilities, and on maintenance costs. Your equipment can even be equipped with resident-friendly features like smartphone app connectivity that allows them to monitor their loads from home.
SelfOp Laundry can help you to equip the on-site laundry facilities at your hotel, or apartment building with exactly the type of equipment you need to maximize your revenues. We can even show you how self-ownership (as opposed to renting) of your equipment can put even more in your pocket.
Ready to add washers and dryers to your laundromat, hotel, or multi-family building? Check out our options here.