Advice Needed: Should We Own or Lease Laundry Machines?

Co-op_laundryGuyMarch 12, 2011

We're a coop in upstate NY (yes, there are a few of us up here). We've had one of those horrible laundry contracts (self-renewing, we pay all utilities, received very small rent fee). The contract has expired and shareholder/tenants want to see the laundry become a revenue stream rather than a constant expense for the building. Just starting our research. We've seen the general literature on the web regarding energy efficient machines, the ruling against "right of first refusal clauses," and the different ways to go: co-op owns machines, co-op has revenue-sharing lease with laundry company.

Does anyone live in a co-op that is happy with its revenue stream from its laundry rooms? How did you do it?

Does anyone have experience/opinions on owning vs leasing of equipment?

Or any experiences, good or bad, with laundry service providers?

Anyone have a great leasing contract and care to share the name of the attorney who negotiated it?

We're eager to learn!

Thanks in advance for your time.

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redcurls

My husband is the president of a 78 unit condo association and did much studying.....is very happy they BOUGHT machines. We are into year 9 and it is definitely an income producer. We have a service contract with a local business. They installed the coin boxes and come whenever we call to repair them. We have 16 washers and 16 dryers...4 to a floor in our 4 story condo.

    Bookmark   March 14, 2011 at 1:34AM
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talley_sue_nyc

One of the other co-ops on our block bought their machine and found that it was a hassle to get it repaired, esp. when it was the coin mechanism that broke. So look locally to see if you can find a company that will repair that part as well.

I'm in a very small co-op (10 units plus a super), and only about half the apartments use the machines very much at all.

I'd actually like to just buy home machines, and assess each apartment based on their current use of the machines (everybody has to write down when they use it, right now), or on a per-person formula. We'd have to take into consideration the idea that some people don't use it at all, but in our situation, I don't think it would be hard to do, actually.

    Bookmark   April 2, 2012 at 4:45PM
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dreamgarden

If you choose to lease, make sure there isn't language in the contract that automatically renews the contract if you don't say something.

This happened to a landlord we used to rent from. Machines were always broken or ate quarters. They took their time servicing them.

Landlord tried to get out of the contract and discovered it wasn't worth the hassle.

Waited for it to expire then purchased machines of his own.

    Bookmark   April 21, 2012 at 3:33PM
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