When you're opening a new laundromat business, one of the first decisions you'll have to make is whether to buy, build, or rent a location. Each option has its own set of pros and cons that you'll need to weigh before making that decision. So, how do you decide which option is best for you: buying, building, or renting? Let's take a closer look at each one.
Option 1: Buying an Existing Laundromat
If you're looking to have complete control over your laundromat business, buying a location may be the best option for you.
Pros of Buying a Laundromat Location
- You'll have complete control over the business.
- There is the flexibility to make changes and renovations.
- You own the freedom to choose hours of operation.
- In the long run, it's more cost-effective.
- It leaves more opportunities for expansion.
Cons of Buying a Laundromat Location
- It can be a costly investment upfront.
- Any maintenance and repairs are your responsibility.
- You may have limited control over the business with more responsibility.
- The hours of operation can also be restricted.
- If it's too costly, there may be fewer opportunities for expansion
Laundromat Due Diligence Checklist
To help you in your purchasing process, Cents created the Complete Laundromat Due Diligence Checklist. It contains all the information you need to conduct the proper due diligence when buying a laundromat.
Option 2: Building a Location
Building a laundromat from the ground up gives you the opportunity to create a space that is specifically designed to meet your needs.
Pros of Building a Laundromat Location
- You'll have complete control over the layout, design, and amenities of your business.
- You get to choose the perfect location for your business.
- The laundromat will be built to your specific needs.
- You can create a unique space.
- There are more opportunities for expansion.
Cons of Building a Laundromat Location
- Initially, it can be a lengthy and expensive process.
- You may have to hire a professional designer or architect.
- You are responsible for all maintenance and repairs once your business is up and running.
- You could be required to purchase additional insurance.
- You'll need more specialized and knowledgeable builders to design your laundromat correctly.
Option 3: Renting a Location
If you're looking for a more flexible option, renting a location may be the best choice for you. When you rent a space, you'll have the ability to choose your lease term and make changes to the property as needed. You won't be responsible for any major repairs or renovations, and you may have the option to sublet if you need to relocate. However, you will be subject to the rules and regulations set forth by your landlord. This is often the easiest way for a laundromat owner to open their first laundromat.
Pros of Renting a Laundry Location
- Renting a location is more flexible than buying/building a laundromat.
- You're not responsible for any major repairs or renovations of the property.
- You may have the option to sublet or assign the lease if you need to relocate or sell the business.
- Regulations are set forth by the landlord.
- As a short-term option, it is more cost-effective.
Cons of Renting a Laundry Location
- You may be subject to unexpected rent increases.
- The landlord may decide to sell the property or change the use of the property.
- The lease could restrict subletting or require a long-term signing and restrict early ends.
- You may be restricted in the control over the changes you can make.
- You may not have as much privacy as you'd like.
You can run a successful laundromat business whether you buy, build, or rent your laundromat location. So choose the option that best suits your business model and personal needs.
Do you have any questions about opening a new location for your laundromat business?