Laundry Room Leases 101
At the most basic level, a laundry room lease is similar to a commercial real estate. While property managers might think they are leasing equipment, that is not the case. The laundry equipment provider is actually the lessee and the property manager is the lessor. They are leasing the space then furnishing it with laundry equipment, no different than a laundromat in theory. The property manager takes a share of revenues from the machines, which is essentially the rent payment. This key difference is crucial to avoiding mistakes in your next lease.
Key Laundry Room Lease Provisions
When looking at your next laundry room lease, there are a few key areas to evaluate. First look at the initial term of the lease and renewal provisions. Make sure you understand and feel comfortable with both. Next, make sure there are no hidden fees or administrative costs. Laundry room lease fees became a major issue last year when CSC ServiceWorks added a 9.75% fee to their existing leases. Lastly, double check the rent and rent increase provisions to make sure it does not significantly increase year over year or if certain minimums are not met.
Negotiating Laundry Room Leases
As a result of bad experiences, many property managers are wary of laundry room equipment providers. While there are bad apples in every batch, it is a misconception that all vended laundry companies fit this bill. Here is a list of providers you can feel confident contacting for laundry room leases at any of your properties.
FMB Laundry – Serving the mid-Atlantic from New Jersey to Virginia
All Valley Washer Service – Serving all of California
Coin-O-Matic– Serving all of Northern Illinois and Northwest Indiana
Automatic Laundry – Serving all of New York City and New England
Caldwell & Gregory – Serving 20 states plus the District of Columbia from New Jersey to Texas.
Aaxon Laundry Systems – Serving all of Florida
Commercial Equipment Company – Serving all of Texas and Louisiana
M Laundering – Serving all of Michigan
Excalibur Laundries – Serving all of California and Arizona
Washington Automated – Serving all of Washington, Oregon, and Idaho
Automatic Industries – Serving all of New York City
WASH Multifamily Laundry Systems – Serving clients nationwide
Coin Meter – Serving all of Oregon and southern Washington
Need Help Finding Qualified Contractors?
Property managers can use BidSource to have our team find a contractor ready to assist with your next project. Share your project details using the form below and our team will be in touch with a qualified contractor!