Guides / Laundromat utility costs

How to Check Laundromat Utility Costs Before You Buy

Water, sewer and energy bills are operating costs worth checking before you buy a laundromat. Trace each estimate back to a bill, a meter or a written quote.

Ask for actual bills, not summaries

If you are buying an existing laundromat, ask the seller for copies of the water, sewer, gas and electricity bills for the same months as the revenue records you are reviewing. Bills from several seasons show how costs move through the year. A seller-prepared summary is a starting point; ask for the underlying bills to check it. Compare the account numbers and service address on each bill with the store you are buying.

Find out who pays for which meter

In a leased space, utilities can be separately metered, shared with other tenants or billed back by the landlord. Ask the landlord, in writing:

Which meters serve the laundromat alone?

Are any utilities shared or allocated, and by what method?

Who pays for connection fees, capacity upgrades or meter changes?

Are utility charges part of rent, CAM or a separate bill?

Ask the utility providers directly

Ask the relevant local providers to confirm the rates and connection requirements that apply at the address.

Which commercial rate would apply at the address

Whether any connection or impact fees apply

How a change of account holder works

Keep the answers with the date you received them.

Match equipment to the bills

Utility use depends on the machines. Ask for the make, model and age of every washer and dryer, plus the water heater. For a new store, ask the equipment supplier for each model's rated water and energy use in writing. The ENERGY STAR site lists certified commercial clothes washers, so you can check whether a quoted model appears there.

Put your figures into one model

Once you have bills, meter answers and equipment details, enter them as assumptions and check how sensitive the result is to each one. The U.S. Small Business Administration's planning guide covers estimating startup and monthly costs and doing due diligence before buying a business.