I’m in the market to buy an existing laundromat. I’ve looked at quite a few laundries – some were rentals and some came with the property. Am I better off buying a laundromat with the property or leasing a storefront?
Unless you come across a rental opportunity with a real sweetheart lease, I believe you’re much better off owning the laundry business and the property, if you have the financial means to do so.
Here’s why:
1. If you buy both, it’s typically much easier to receiving bank financing.
2. If you own the building and the property, you’re gaining equity. If you’re paying rent, you’re not.
3. If you own the property, you don’t need to seek a landlord’s permission to make changes to the building or the property that may not be included in the lease.
4. If you own the property and decide that you want to get out of the laundry business, you can sell the laundromat, but keep the building and collect rent – or you can sell both.
5. If you lease, your rent will always go up – unfortunately, sometimes your business may not.
Of course, before making any major business decisions, be sure to consult with your attorney, accountant and any other professionals on your business advisory team, with regard to any specific opportunities you may be considering.
I have two self-service laundries, both of which do a great deal of wash-dry-fold laundry. However, I’m always having problems with oil and grease stains. Could you give me some advice on how to remove those tough oil and grease spots that we occasionally encounter?
There are some great products on the market that are specially formulated to deal with oil and grease stains. One of them is called Laundry Wetspo. It’s available through your local laundry and drycleaning supplier, and it’s simple to use in your laundromat’s washers.
In a 40- to 50-pound washer, use six to eight ounces of Laundry Wetspo, in conjunction with your laundry detergent, in a hot-water wash cycle. This should take care of nearly any grease or oil stains you may come across.
After washing garments with this product, the clothes may have a slight petroleum smell; however, that should dissipate after running the items through a normal drying cycle. If the odor lingers, rewash the garments using detergent and bleach.
Always be sure to check the care labels of the garments in question before undertaking any stain-treating procedure.
