Providing a shared laundry facility can enhance tenant satisfaction and offer landlords an additional revenue stream. Whether you’re outsourcing operations or exploring alternatives to coin-based systems, this guide to rental property laundry service options outlines key considerations for landlords of multi-unit properties. We’ll delve into some of the options we’ve tried out, including:
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Types of Laundry Service Options
Contracted Laundry Service
For landlords managing larger properties, or those who want to offer laundry services without adding any workload, outsourcing operations can save time and effort. Companies like WASH Laundry offer full-service solutions, including machine installation, repairs, and payment collection. While there are no upfront costs, these services typically retain about 50% of the revenue generated by the machines. A full service laundry solution provider will usually have multiple payment options available, from low-technology quarter-operated machines to fully digitized payment services. Landlords are still responsible for utility expenses such as water and electricity, so it’s crucial to weigh operating costs against the reduced income when you hire an outside company to manage your laundry equipment.
Owner Operated Laundry Service
For smaller properties, a hands-on approach may be more practical. Purchasing, installing and maintaining your own laundry machines lets you retain all revenue and gives you full control over operations. While this option certainly requires more involvement, your laundry service may become a profitable addition to your property management portfolio.
In Practice: Tips to operating a successful laundry room
Types of Laundry Payment Systems Available
Landlords can choose from several payment systems based on tenant preferences and property needs, including coins, app-based systems, tokens, and laundry cards. It is also possible for a machine to be fitted with multiple payment options– these are called hybrid laundry systems. Each type of system has its pros and cons, which we’ll discuss below.
Coin Operated Washing Machines
Coin-operated machines are a traditional option, but they can be cumbersome and time consuming to operate. Tenants must have $1–4 in quarters per load, and landlords must regularly empty coin trays to prevent them from jamming. In addition, landlords or property managers will need to allocate time to rolling and depositing coins. Processing coins can also be costly, with banks or coin machines charging fees of 5% or more. To streamline operations, landlords can install a machine that accepts bills and dispenses quarters, which they can load with coins collected from the machines, but this added expense is only practical for higher-volume facilities.
App-Based Laundry Payment Options
App-based systems like ShinePay and PayRange are modern alternatives that allow tenants to pay via smartphone. These systems work with existing machines, either replacing or complementing coin mechanisms.
App-based systems require a hardware kit for each machine. As we use ShinePay, we’ll go into detail on the costs of that system, which were $150 per unit. Order and installation of the units involves providing machine serial and model numbers, and may require collaboration with customer support. Landlords or property managers can install the kits using the instructions provided, or in some locations can hire professionals who are familiar with the systems.
To use the app payment system, tenants download the app, create an account, and add funds. Payments are processed via Bluetooth, meaning the app works without internet—ideal for facilities without Wi-Fi. Landlords using ShinePay are charged approximately 3-4% per transaction and can opt to pay an additional $5/month service for the app to handle tenant refund requests. When the tenant reports a refund request, the app customer support team reviews and processes refunds, tracking them for repeated issues.
When a tenant uses the app to run loads of laundry, funds are transferred to the landlord’s account and can be moved to a bank account at will. The app also generates a 1099 form for tax purposes. While app systems involve upfront costs, they significantly reduce time spent collecting payments and improve tenant convenience as well. When installed in an owner-operated system, the property owner or manager will still be the one responsible for responding to maintenance issues with the machines.
Interestingly, ShinePay offers other services to landlords, such as electric vehicle charging ports, RV pedestals, etc., which they can install at your properties as well.
Token Operated Laundry Systems
Token systems offer a cash-based alternative to quarter-operated machines. Tenants purchase tokens from a dispenser using bills. Tokens can be set to any specific value, usually the cost of a load of laundry, simplifying transactions and reducing coin handling for landlords.
Landlords must allocate some time to regularly recycling the tokens back into the dispenser while collecting cash payments. Credit card-enabled token dispensers are also available but are cost-effective only for high-volume facilities due to processing fees.
Laundry Card Systems
Laundry card systems eliminate cash and coins entirely. Tenants load funds onto a card, often via online payments, which they use at card readers installed on machines. The funds then go into the landlord’s online account, minus any fees charged by the system operator. While convenient, these systems may be better suited for larger facilities due to their higher setup costs. They also require the tenants to keep and use a laundry card when doing laundry.
Hybrid Laundry Systems
Hybrid systems combine multiple payment options, such as coins, apps, or cards, offering tenants greater flexibility. This versatility can improve tenant satisfaction but may require additional investment and maintenance.
Takeaway
When setting up a shared laundry facility, landlords must first decide whether to contract out operations or manage them in-house. The best choice depends on factors like property size, tech-savviness of your tenants, expected revenue, and willingness to handle maintenance.
Next, choose a payment system that fits your tenants’ needs and your management style. Coin operated machines are simple but cumbersome for both tenants and landlords. Apps are modern and convenient, but require a bit of start up cost and initial set up. Tokens combine cash convenience with less coin handling. Laundry cards combine digital payments with physical preloaded cards. And hybrid systems offer flexibility by blending payment options. Each system has unique benefits and costs, so consider your property’s scale, tenant demographics, and operational goals to make the best decision.
Landlording A-Z Series:
Our Landlording A-Z series will walk you through each of the stages, tasks, and issues involved in rental real estate investing. In our next installment, we’ll discuss property management software.
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