Laundry Money Podcast Show Notes

The Economics of Multi-Housing Laundry Facilities

Written by A.L.L. Laundry Service | Sep 15, 2025 1:00:00 PM

In the world of multi-housing management, few amenities offer as much potential for steady return on investment (ROI) as the on-site laundry room. While often overlooked compared to splashier upgrades like pools or clubhouses, laundry facilities can significantly boost revenue, reduce turnover, and contribute to resident satisfaction if managed correctly.

In this blog, we’ll explore the economics behind multi-housing laundry rooms, breaking down upfront costs, operational models, passive income potential, and long-term value for owners and property managers.

1. Revenue Potential: A Built-In Income Stream

At its core, a laundry room in an apartment complex is a micro-business. Depending on the number of units and the frequency of use, laundry facilities can generate thousands of dollars in passive monthly income.

Let’s do some rough math:

  • Assume 50 occupied units.
  • Each household does 6 loads per week.
  • At $2.00 per wash and $2.00 per dry, that’s $4/load.
  • 6 loads x $4 = $24 per household per week
  • $24 x 50 units = $1,200 per week or $62,400 annually

Even when split with a third-party laundry provider, this can represent a healthy margin, especially for a utility that requires minimal staffing and low overhead.

2. Operational Models: Ownership vs. Outsourcing

There are two main models for apartment laundry facilities:

A. Owner-Operated

Pros:

  • Full revenue retention
  • More control over pricing and service

Cons:

  • Upfront equipment investment
  • Ongoing maintenance responsibility
  • Higher time and resource demands

B. Third-Party Laundry Provider

Pros:

  • No upfront capital
  • No maintenance headaches
  • Revenue-sharing with little oversight

Cons:

  • Lower share of revenue
  • Less control over machines and pricing

Depending on the property’s size, age, and maintenance capabilities, outsourcing laundry operations can significantly reduce risk while still offering a steady income stream.

3. Smart Payments = Smarter Returns

One of the fastest-growing trends in multi-housing laundry is the shift to mobile and digital payments. Card or app-based systems reduce cash handling, deter theft, and provide detailed usage analytics for better decision-making.

In fact, properties that adopt cashless laundry solutions often see 10-20% increases in usage because the convenience encourages more frequent use and removes friction for residents.

Additionally, modern payment systems often allow for flexible pricing, such as off-peak discounts or bundled load pricing, which can improve usage rates while still maximizing revenue.

4. Retention + Resident Satisfaction

Laundry may not be flashy, but it’s essential, and its convenience can make or break a resident’s perception of your property.

According to a survey by the National Multifamily Housing Council, 87% of renters say in-unit or on-site laundry is a top amenity when deciding where to live . A clean, modern laundry room with working machines and mobile payment options shows that a property values residents' time and convenience.

That translates to:

  • Higher renewal rates
  • Fewer complaints
  • Less resident churn (which saves you the cost of turns and vacancies)

5. Tax Advantages + Efficiency Gains

Investing in laundry equipment may also come with tax deductions or accelerated depreciation benefits. Section 179 of the IRS tax code allows businesses (including multifamily owners) to deduct the full purchase price of qualifying equipment in the year it’s purchased.

Additionally, new high-efficiency washers and dryers reduce water and energy consumption, often by 30–50%, cutting utility costs and supporting sustainability initiatives.

6. Future-Proofing Your Property

A smart laundry room isn’t just a 2025 trend, it’s a long-term asset. With the growth of remote work and more time spent at home, residents expect convenience in every corner of their living experience.

Modern laundry amenities signal a forward-thinking, responsive management approach, and that’s what attracts and retains today’s renters.

Final Thoughts

From a business standpoint, laundry rooms in multi-housing facilities are a low-barrier, high-ROI investment. Whether you manage a 20-unit building or a 500-unit complex, the right laundry setup can provide consistent income, happier residents, and fewer headaches.

And with the rise of mobile payments and efficiency-focused machines, there’s never been a better time to re-evaluate your laundry strategy.

Sources:

  1. Coin Laundry Association – Laundry Trends
  2. National Multifamily Housing Council – 2023 Renter Preferences Survey Report
  3. IRS Section 179 Deduction
  4. Energy Star – Commercial Washers