How to Save Capital by Leasing Commercial Laundry Equipment
Reliable commercial laundry equipment for landlords and businesses can be expensive, even when it’s just a set. Whether putting together a shared laundry or upgrading current pieces, deciding how to get your new machines can be a tough decision. Some just want to tear the band-aid off and drop a large sum of money, buying the equipment they need. However, in most cases, leasing commercial washers and dryers is the safer decision and comes with many benefits.
With technology advancing in terms of features, resource management, and efficiency, top-of-the-line machines may not look so great when they reach the end of their life cycle. Additionally, with most commercial washing machines lasting 10–15 years, it could take a long time to take advantage of new advancements.
Leasing options can provide upgrading options, keeping your property ahead of the curb, and include two critical components of operating a shared laundry room: repairs and maintenance. These two words plague every facility manager in terms of cost, and with it built into the lease agreement, this can be one area that does not become another burden.
Other benefits, like tax breaks, can also make leasing more appealing than buying in the long run. So, let’s explore why leasing your next commercial washer and dryer can be a game changer in your laundry operation.
How Does Leasing Laundry Equipment Help You Preserve Capital?
For property owners and managers, controlling capital wisely is essential to long-term growth. When it comes to a major operation like a shared laundry room for tenants, which is relied on daily, leasing commercial washers and dryers is one effective way to conserve upfront cost while still providing residents with modern, high-performing laundry machines.
Instead of laying out large capital to purchase your machines outright, leasing commercial laundry equipment allows the cost to spread over time through predictable monthly payments. This will help maintain liquidity, a critical advantage when budgeting for other upgrades on the property, staffing, or emergency repairs.
Speaking of repairs, many lease agreements include service and maintenance. In most cases, this is a cost the property must absorb, but with it included in the leasing package, the monthly budget can be protected without the fear of high repair costs and downtime.
Another great component of leasing commercial washers and dryers is reducing equipment obsolescence. As technology advances, so do energy efficiencies and user features in commercial laundry machines. When leasing, you can upgrade to newer models more frequently without being locked into aging equipment that is costly to maintain and harder to sell.
Leasing commercial laundry equipment is ultimately a strategic decision that helps preserve cash flow and allows more money to be available for future property upgrades.
What Are The Upfront Cost Differences Between Leasing and Buying?
When investing in the best washing machines for landlords or businesses, understanding the upfront cost differences between leasing and buying is essential for making an informed financial decision.
The capital needed to buy commercial laundry machines can be significant. Depending on the brand, capacity, and features, a single unit can cost anywhere from $2,000 to $5,000 and sometimes even more.
Outfitting an entire laundry room can quickly run the cost into the tens of thousands. When buying, this initial cost is usually required to be paid in full. This must also include installation costs and utility setup. This type of initial cost may be very stressful on property managers and their plans for future projects.
In contrast, leasing commercial washer and dryers offer a capital-light alternative. Instead of coming up with a lump sum payment, you pay a fixed monthly fee over the term of the lease. Usually, these lease agreements require little to no money down, and the installation and maintenance are bundled into the agreement. This will significantly reduce the initial cash outlay and preserve working capital.
Are There Tax Advantages to Leasing Laundry Equipment?
Leasing commercial laundry equipment can offer operational convenience and may come with important tax advantages that benefit the bottom line.
One key benefit is the ability to classify lease payments as an operational expense. Most businesses can deduct the monthly lease payments as a business expense on their income taxes. This could reduce taxable income, resulting in a lower overall tax burden.
This differs from purchasing equipment, which often requires depreciation tracking over several years. Leasing allows you to deduct the full payment each period, offering immediate tax relief. Additionally, because leased equipment typically does not appear as a long-term asset on a balance sheet, it may help improve financial ratios. Commercial washer and dryers leasing offers flexibility and potential financial advantages for businesses looking to preserve capital and reduce taxable income.
Who Handles Maintenance When You Lease Laundry machines?
One of the most significant advantages of leasing commercial washer and dryers is the inclusion of service and maintenance in most lease agreements. This not only protects long-term performance on these machines but also simplifies the management of the equipment. Commercial laundry machines must be maintained and fixed by certified technicians with quality parts to continue running smoothly.
When leasing, the provider of the equipment typically takes the responsibility for routine maintenance, repairs, and even in some cases, emergency calls. This takes the pressure to pay a service tech and find one when needed.
The providers also want the machines running at peak performance to spare them from unnecessary repairs, so keeping your machines moving is in their best interest. This structure usually also results in faster service times, as they are just as invested in these machines as the property is.
Facility managers usually juggle multiple responsibilities throughout their day, and leasing options for such an essential part of the property can provide peace of mind. Maintenance does not have to be a burden, but a built-in feature that ensures the laundry room runs efficiently and with minimal disruption.
Start Leasing Commercial Washer and Dryers From Commercial Laundries Today
When it comes down to it, leasing commercial washer and dryers is not only a smart financial decision in the present, but also a way to protect the operation in the future. With included repairs, routine maintenance, and emergency service, the quality of the machines will be much higher than that of machines bought and neglected.
Future upgrade options can keep you competitively ahead of the game and allow your property to take advantage of new advancements in energy efficiency and resource management, thus leading to more money for the bottom line. Additionally, even more money can be brought in by deciding to lease, which can be claimed in a more hassle-free and straightforward way on year-end tax returns.
The only thing to decide now is who to partner with. Established in 1972, Commercial Laundries Inc. has been serving hotels, apartments, and dorms for many years. With brands like Speed Queen, Maytag, Whirlpool, and Miele, you can feel confident in the quality we surround ourselves with. With superior brands and household names, we bring our partners quality customer service and excellent service.
Reach out to Commercial Laundries today at 305-889-7966 to hear about our exciting leasing options.
