Is adding in-unit laundry in your rental worth the investment?
Adding an in-unit laundry is one of those upgrades that seems like an obvious win. After all, many tenants consider it a deal breaker because the idea of not being able to do a quick load while you make dinner isn’t appealing. Before you jump on Amazon to order a new washer and dryer, it’s essential to consider the real costs that come with it.
Aside from the cost of installing the equipment, you need to pay extra utility bills and maintain it. Thus, savvy landlords know the question isn’t whether tenants want an in-unit laundry. They do. The real crux of the matter is whether adding one to your rental is worth the investment.
Why in-unit laundry is a strategic investment?
Premium rental value and ROI
There’s a reason many listing websites let you search for accommodation with a laundry filter. It’s because tenants are willing to pay more for the convenience, especially in urban areas or multi-unit complexes. Not having to lug your dirty clothes across the street sounds appealing, and rentals that offer such services make more in the long run. In some markets, you can even make as much as $100 more with an average payback period of 3 years. Beyond the cost of the initial installation, you only have to worry about maintenance. A dedicated rental manager in Delaware County can coordinate regular inspections to protect your investment from potential water damage.
Increased tenant retention
Higher turnovers mean lower profits for you, because a significant portion of your money ends up going to cleaning, repainting, and marketing empty units between tenants. That’s exactly why savvy landlords prioritize tenant retention, which is where an in-unit laundry system comes to play. Not only does it attract new renters to your apartment, but it also locks in your old tenants longer. After all, who wants to move to another house after tasting the convenience of doing laundry at home? By reducing the burden of taking their laundry out of the building, you can sway your tenants to stay longer, saving you more money and making your income more predictable.
Competitive market differentiation
Another reason adding an in-unit laundry makes sense is that in a highly competitive renter’s market, it may be the upgrade you need to set you apart. New tenants can easily filter their searches on the listing by checking the box for in-unit laundry, which increases their reach when other units might become hidden. That means you get to jump to the front of the queue and could potentially attract higher-quality tenants looking to pay more for the convenience. It’s also a way of future-proofing your rental as newer buildings spring up with in-unit laundry, preventing your property from becoming obsolete.
Mitigating the risks of in-unit upgrades
Maintenance costs
A common question for tenant applications is what does in-unit laundry mean for the utility costs? After all, someone has to pay for the extra water and electricity, and it often comes down to the tenants in long-term arrangements. To that end, we highly encourage landlords to opt for water and energy-saving washers and dryers to keep these bills to a minimum. You also have to save money, and you can do that by standardizing your fleet. If you own multiple units, purchase the same make and model. Not only will it be easier to get a deal, but it also means you can share spare parts, and your maintenance team won’t have to pull out a manual in each unit. Also, remember that your appliances have an average lifecycle of 5 to 10 years, so it would be wise to set aside a portion of your rent for eventual replacement.
Prevention technology
Installing an in-unit laundry system significantly increases your property’s risk of water damage. From wet clothes lying on hardwood floors to a leaking pipe, there’s a lot that can go wrong. That’s why we recommend taking prevention technology seriously to avoid your investment becoming a liability. You can do that by installing a leak detection system that alerts tenants when there’s a burst hose or has an automatic water shut-off system. Also, always install a drain pan under the washer to catch any spills or extra condensation.
Lease language
Use your lease as an extra line of defence to prevent financial disputes. For instance, it’s common for people to take their laundry over to a friend or neighbor’s house to do laundry if they don’t have one at home. Adding a caveat in your lease that clearly outlines that the washer and dryer are for the resident’s use only will discourage some tenants from giving their friends the green light. Besides preserving the life cycle of your appliance, a well-defined lease also puts negligent tenants on the hook for repairs if they fail to report a leak or damage the machine by using the wrong type of detergent.
Conclusion
Installing an in-unit laundry is a definite plus in the rental market, especially if you’re in a competitive area. Beyond attracting interested tenants, it also increases tenant retention by keeping old renters locked in with the added convenience, ensuring your new upgrade brings in consistent income.
However, the installation and maintenance costs can quickly rack up, making your investment a liability. That’s why it’s essential to mitigate risks by standardizing your fleet and emphasizing preventive technology. Also, pay attention to how your lease is worded to protect your interests.