Breaking Down Multi-Housing Laundry Options
Having options is always nice. Owners of Multi-Housing Properties might not know that there are different options when it comes to making a decision about adding or upgrading a laundry room facility. Today I hope to explain all of the options Yankee provides to Multi-Housing Owners.
This is probably the option most people know and maybe assume they are stuck with. You as the property owner must purchase the equipment outright, paying for it with cash or financing the purchase. In this situation the property owner will keep 100% of the revenue from the machines. However, the machine price must be established high enough to make a profit after paying the note, utilities and upkeep labor.
Upkeep labor actually produces an additional cost consideration of a purchase option. Owning equipment outright means there needs to be an allowance for repair and maintenance (through staffing or Yankee Service Dept.) as well as money collection.
For Multi-Housing property owners who want to provide a laundry room without the worry of repairs and money collection, Yankee’s rental option allows owners to rent us the laundry room space on a monthly basis. Yankee will install, maintain and perform collections of all installed equipment which remains our property.
The property owner still provides all utilities required for the laundry room. However, these costs should be considered when determining the monthly rent.
3.Revenue Split Option
Our last option is our most popular for property owners. Under a contracted agreement the property owner supplies the room and utilities while Yankee provides the Equipment. Yankee as the owners of the equipment performs collections and the revenue is split between Yankee and the property owner at a contracted amount. Generally, a 5 year contract would see a 50/50 split.
Both sides agree on a profitable vend price taking into account the Property owner’s and Yankee’s expenses for the project. The property owner maintains a clean and attractive laundry room area (including machinery appearance) and Yankee maintains the equipment in good operating condition.
All three are viable options to allow Multi-Housing property owners the ability to offer tenants a clean, affordable laundry room. And if you need help deciding which option might be the best for your own situation we can help you there as well. We invite you to contact us anytime for a consultation about laundry room options.