Greetings Gentle Readers!

Today's topic is one that is of some concern to multifamily apartment owners currently in a laundry lease or thinking about signing a laundry lease.

"Commissions" is a colloquial term used by laundry vendors and property owners alike but in reality "commissions" are legally "RENT" for the space the machines occupy.

Typically the property will receive a percentage of the gross revenue (collections) that the machines generate from usage by the residents on the property and in some cases off property usage.

How that percentage is computed can be confusing.  There are 3 very broad categories of RENT payments that are computed and made typically monthly.

First let's look at what some variables the laundry vendor will input to calculate any type of RENT payment.

 

Once those variables are collected and input the commission or RENT payments can be determined by the laundry vendor's software program. ‚ÄčAnd, as I mentioned there are 3 broad categories....

 

 

Are there other variations?  Sure but not significant variations.   I hope this helps apartment owners better understand what goes into and what comes out of the gross revenue.

As usual, your comments, questions and any feedback is appreciated! 

Thanks for reading!