Author: David Shulick

Building owners are always looking for new ways to attract and satisfy tenants. Commercial property owners should consider adding vended laundry services to their building as a new tenant benefit and potential source of income. Below, David Shulick explores how offering laundry facilities can enhance tenant satisfaction and attract long-term, quality renters.

Elevating the Residential Experience

Vended laundry services attract not only customers looking to do regular weekly washing and drying, but also those who may have their own washer/dryer at home but need a larger industrial machine to clean bulky items like bedspreads, blankets, and comforters that don’t fit in home appliances.

Having these services available for residents in an apartment building can make renting in that facility far more attractive. It eliminates the need to buy and make space for home appliances, and also have a one-stop shop available in-house for cleaning large items. Using a laundry services within one’s own building can save tenants time and travel, and residents may even be wiling to pay a higher rental fee in order to have access to such services.

A laundry facility can become a communal space for residents looking to connect, as residents may socialize as they wait between laundry loads. Consider adding comfortable seating areas; desks for co-working; entertainment options like TV, Wi-Fi, and games; and food and beverage vending machines for a more elevated community experience.

Vended Laundry Services Attracts More Business

Adding a vended laundry service to a commercial property that also houses other businesses, such as a mixed-use development, can attract additional customers. If folks are stopping by the vended laundry with their daily washing, they may then pop into the café next door, take a yoga class in the nearby yoga studio, hit the local gym for an hour, or do their daily shopping while they wait.

Calculating the Potential Value of Laundry Options in Residential Spaces

Vended laundries in the United States generate nearly $5 billion in gross revenue annually, with more than 29,000 facilities across the country – this comes out to a value of about $172,000 per facility on average. Certain equipment providers allow for owner revenue shares, while also providing equipment installation, maintenance, and upkeep, which will keep owner overhead costs to a minimum.

Such a partnership with an equipment company means building owners will also get expert advice on machine selection. All costs for the equipment are paid upfront, which means added a vended laundry service is essentially a one-time fee that the owner can then reap the profits of for years to come.

In Conclusion

Vended laundry services can elevate the tenant experience by providing an essential service available on-site for a low cost. It saves tenants both money and physical space since they no longer need to purchase and install their own appliances, and they can find community by socializing in the laundry area while they use the services. Building owners can make a nice profit from the machines, and the vended laundry will also attract potential customers to other businesses in the building.

A common inconvenience often goes unnoticed until a solution is found: the absence of nearby laundromats. The struggle of lugging a heavy laundry load for blocks or waiting in a different neighborhood while clothes wash could be alleviated if more entrepreneurs invested in vended laundry facilities in commercial spaces.

But if individuals did decide to pursue this business venture, what requirements are they looking at? And what do they need to prepare?

David Shulick delves into this potentially profitable business endeavor – but first, explains the legal requirements when operating a vended laundromat.

Starting a Laundry Business in a Commercial Area

All business owners must comply with legal requirements. When starting a vended laundry business, make sure to obtain and apply for the following:

• Business Permit
• Construction Permit
• Employer’s Identification Number (EIN)
• Fire Inspection Certificate
• Hazardous Waste Permit
• Water Pollution Control Permit

It should be noted that there may also be additional requirements, depending on the local government or location.

Moreover, make sure to prioritize insurance before fully operating the laundry business. Some insurance that is essential to apply for are:

Property Insurance/Commercial Building Insurance

As much as business owners want to ignore or dismiss the prevalence of robberies, it happens – more frequently than ever before.

Having insurance provides a safety net in case of a robbery – they also provide protection against damages to your property, so business owners don’t have to fear permanent loss due to floods, earthquakes, or other calamities. Insurance plans can extend their coverage to various other types of accidents as well.

General Liability Insurance

No matter how many anti-slip rugs or “wet floor” signs are in the laundromat, there’s still a chance that a customer will have an accident. When that happens, they can rightfully file a liability claim against the business.

But how likely can a small business owner pay for that?

Without liability insurance, there’s a chance for new vended laundry business owners to suffer from financial loss from the liability claim expenses.

But business owners and their customers aren’t the only entities who deserve insurance.

Workers’ Compensation

A business won’t be successful if they aren’t considerate of their employees. And if there’s a chance that customers can fall or get injured in the laundromat, so, too, can the workers. Therefore, it’s vital to protect them by applying for worker’s compensation insurance.

Laundry Business Tips and Strategies

Got a cool idea for the laundromat’s name? Consider registering it as an Intellectual Property. This way, nobody can use the same or similar name.

But not having one is fine, too – as long as the governing entities receive and approve the required registrations, certifications, and applications for the business operation.

Once the vended laundry is in operation, it’s time to strategize how to make it a well-loved place of business.

Try doing the following:

• Develop unique selling points – such as vending machines, phone charging stations, free Wi-Fi, etc.
• Offer promos and discounts.
• Boost online presence – list the business on Google, advertise on social media, or create a website.
• Develop great business partnerships with mechanics, soap suppliers, delivery personnel, and others who help the business; they can provide discounts for their products and services – or promote the business via word-of-mouth.

Summary

Every town can benefit from laundromats. Fortunately, it’s easy to make vended laundry into a business. As long as aspiring laundromat business owners meet the legal requirements, expanding the business is easy, enjoyable, and profitable.

Mixed-use properties have gained popularity over the years from both a developer and buyer perspective. The benefits of combining laundromats and housing can be identified for both the property/business owner and the tenants residing in the building. The owner will benefit from an increase in housing desirability and profitability. The tenant will experience unparalleled convenience and greater home security.

Below, David Shulick explores the advantages of combining coin laundry and housing in the same building from two perspectives: the developer/owner and the tenant.

Benefits of Combining Housing and Laundry in One Space

Mixed-use properties are a great benefit to communities in any form, but the owners often have trouble keeping each retail space full. Pairing housing units with a vended laundry business is a great way to avoid the common struggles associated with mixed-use property ownership, and it can do a lot for the housing tenants as well.

Benefits for the Owner

Owners of mixed-use properties have a lot of expenses associated with the management of the building, and when spaces are empty, they may struggle to meet the financial demands of the property. Empty retail spaces can also be a deterrent for housing tenants, as the perceived risk of living there is higher.

Filling that empty retail space with a laundromat can greatly increase the desirability of a building for residential tenants, as they can see that the area is flourishing, and the property isn’t at risk of a management change. Plus, a laundromat is an incredibly attractive amenity for prospective tenants if they don’t have access to laundry facilities in their apartments.

In addition to increasing the desirability of their housing units, property owners will also benefit financially from the addition of coin laundry facilities. The revenue generated from a vended laundry business will be high enough to cover the expenses of the business and also generate profit that can be used for other purposes.

Benefits for the Tenant

Residential tenants will also benefit from the addition of a laundromat to the mixed-use property. The convenience of on-site laundry facilities is unbeatable, especially for tenants that may have difficulty accessing laundry services elsewhere in the neighborhood. Not only is a laundromat a convenient place to take care of a weekly chore, but it also acts as a safe, convenient place for socializing.

Tenants will also benefit from a boost in housing security with the addition of vended laundry units in the building. It will make new tenants more comfortable signing a lease since they won’t be walking past empty retail space (this is considered a red flag for many people), and existing tenants will have more activity in the building to help them feel more secure during their long-term housing commitment.

Wrapping Up

It is evident that combining housing units and a vended laundry business is one of the best ways to get the most out of a mixed-use property. Given the numerous advantages for property owners and residential tenants alike, it is likely that this style of mixed-use space will continue to gain popularity as time goes on.

As communities evolve with modern society, mixed-use developments have grown in popularity in recent years. These developments integrate retail, residential, and office spaces within one building to allow residents ample space to live, work, and play. These flexible spaces offer a variety of businesses the opportunity to establish a retail space with a built-in audience. David Shulick takes a look at how these integrated spaces restore communities.

Mixed-Use Developments Explained

The University of Delaware notes that a mixed-use development is building or series of connected buildings, all pedestrian-friendly (i.e., within walking distance), that combine one or more of the following uses: residential, cultural, industrial, commercial, and/or institutional.

Urban planners design these to not only serve residents by providing housing but also to generate revenue for local businesses. At a time when people are fleeing cities in part due to the pandemic and the rising cost of living, mixed-use developments can provide an urban-like living environment in an otherwise suburban or even rural locale.

How Mixed-Use Developments Can Benefit Communities

The onslaught of COVID-19 proved the need for flexible retail and office options that can be available close to home. Commonly, these spaces offer better return on investment that single-use spaces, particularly as our culture faces a decline in city dwelling, in-person retail purchases, and full-time office work. These developments can keep communities thriving with their flexibility, 24/7 access, communal spaces, curated experiences, and resilience.

Examples of Retail Options for Mixed Use-Developments

The possibilities for retail businesses in mixed-use developments are endless. But some make more sense than others when it comes to taking advantage of the built-in audience of building residents.

Vended Laundry Facilities

Perhaps the most practical option for a retail space within a mixed-use development is a vended laundry facility. A business that offers self-service commercial-grade laundry machines will be a direct benefit to the residents of the development, not to mention other community members that might travel to the facility to use it too.

Gym and Exercise Spaces

Residents would benefit from exercising at a gym or other health and fitness business like a yoga or Pilates studio within the mixed-use development. Memberships could even be offered at a discount to residents to encourage their solicitation of the business. Plus, such exercise spaces offer a natural area for the community to socialize.

Restaurants, Coffee Shops, and Cafes

These spaces would see daily patronage from residents, particularly those looking for a quick bite to eat or easy place to meet up with friends close to home.

Art Gallery or Creative Space

An art gallery or other creative space like a pottery or glass-blowing studio would not only benefit from the built-in audience of the development residents, but also bring a much needed does of creativity and culture to the growing community.

Conclusion

The increase in mixed-use developments marked by the integration of retail, residential, and office spaces points toward a future that is more flexible, community-oriented, culturally conscious, and hopefully sustainable for generations to come.

Vended laundries provide professional-grade, high-quality washer and dryer units available to customers at the touch of a button or the drop of a coin to clean clothes, towels, bedsheets, and other linens. But these facilities can house more than just laundry machines. In fact, there are several ways to expand such a business and offer enhanced services to customers. David Shulick explores examples of ancillary services in vended laundries.

Examples of Ancillary Services in Vended Laundries

The possibilities for ancillary services in vended laundries are nearly endless, limited only by one’s imagination! These added services can offer additional revenue to the laundry business through direct additional purchases, and by keeping customers occupied and entertained and therefore present at the business for a longer period of time. Below are just a few suggestions of such products.

Additional Payment Options / Credit Card Machines

The days of old-school coin purses may finally be over! Installing credit and debit card machines or even additional electronic payment options like smart phone apps such as Apple Pay, Zelle, PayPal, or Venmo can provide ease and flexibility to customers who may not want to carry a stack of quarters. This added option could be a huge draw to younger customers looking for more accessible, high-tech options.

Coin or Change Machines

For those who still want to pay with coins or cash, vended laundries should consider installing a few coin machines so that customers can exchange for the exact change they need to operate their machine of choice. Remember, vended laundries were once called “coin laundries” for a reason.

On-Site Laundry Furniture

Customers need a place to sort and fold their laundry once it comes out of the machine. Tables and bins for sorting are a thoughtful and efficient addition to a vended laundry facility, providing a solution for customers from beginning to end. Comfortable chairs for waiting are also a must.

Vending Machines

Small conveniences can go a long way for customers waiting for their next load of laundry to complete. Vending machines can provide vended laundry customers with a variety of snack and beverage options for them to enjoy as they wait. Plus, these machines can provide an added bit of profit for the business owner. One might also consider serving coffee.

Entertainment Options

Much of a customer’s time at a vended laundry is spent waiting for their clothes to complete a cycle. The business can provide entertainment solutions like televisions, arcade games, and wireless internet to keep customers busy and engaged without leaving the premises. Books and magazines available for free or for purchase would also be a lovely, personalized touch for guests looking to minimize their screen time.

In Conclusion

Vended laundries can provide customers more than just access to high quality washers and dryers; they can be a destination for snacks, entertainment, recreation, and more. Vended laundry businesses should consider providing a range of options for guests, to increase the customer base, keep customers happy, and increase profitability.