How to Start a Laundromat
A laundromat looks like a quiet, steady business, and it can be. But behind the hum of the machines sit big decisions about leases, water, drainage, equipment and maintenance. This guide shows you how to start a laundromat step by step, whether you buy an existing one or build from scratch, and how to add services that keep income flowing beyond the coin slot.
Key takeaways
- Decide early whether to buy an existing laundromat or build a new one. Each has very different risks.
- Utilities, drainage, venting and the lease length matter as much as the location itself.
- Card and app payments, plus software for wash and fold orders, can simplify the business and widen your customer base.
- Wash and fold, pickup and delivery and commercial accounts can add steady income on top of self-service.
- A written maintenance routine protects your biggest asset: the machines.
Late summer is a useful time to plan. Students move into shared housing without a washing machine, families wash bedding and sports kits before school starts and holiday rentals send out bulk laundry. Visiting local laundromats now shows you how busy they get, who uses them and what customers wish was better.
A quick note before we dive in: this article is general information, not legal, tax or financial advice. Permits, building and plumbing rules, environmental requirements and employment law vary by country, state and council. Speak with your local authority, an accountant and a solicitor or attorney before you commit.
Buy an existing laundromat or build a new one?
This is the biggest early decision, and it shapes everything else.
Buying an existing laundromat
You get customers, equipment and utility connections from day one. The risks are hidden: tired machines near the end of their life, a short lease, overstated income or a neighborhood that is changing. Ask for utility bills, service records, the lease and several years of financial records, and have an accountant review them.
Building a new laundromat
You choose the location, layout and equipment, and you start with a clean slate. You also carry the full build-out cost, the permitting time and the risk of starting with no customers. Plumbing, drainage, electrical capacity and venting can be expensive to install, so get professional quotes early.
Common mistake
Trusting the seller's revenue figures without checking them. Compare reported income with water and energy bills for the same months. If the utility use looks too low for the claimed sales, ask why, and get an accountant's view before you sign.
Choose a location and check the building
Laundromats tend to do well near people who do not have their own machines, such as renters in apartments or flats, students and people in shared housing. Convenience matters, so parking, transport links and nearby shops or cafes all help.
- Demographics. Walk the neighborhood. Look at the type of housing, how many buildings have shared or no laundry facilities and where the nearest competitors are.
- Utilities. Confirm that the water supply, drainage, gas (if you plan gas dryers) and electrical capacity can handle commercial machines.
- Venting and drainage. Dryers need proper venting, and washers need adequate drains. Retrofitting both can be costly.
- Lease length. Machines last years, and build-out is expensive. Many owners look for a long lease with renewal options so they can recover their investment. Ask a solicitor or attorney to review it.
- Permitted use. Check with the council or city that a laundromat is allowed in the building and what permits the fit-out needs.
Pro tip
Sit in a competitor's laundromat on a Saturday morning and a weekday evening. Count how many machines are running, how long people wait and what they do while they wait. You will learn what to copy and what to do better, such as cleaner seating, Wi-Fi or a folding area that is never full.
Pick your machines and payment setup
Equipment is usually your biggest investment, so think about capacity, efficiency and serviceability, not just the purchase price.
- Machine mix. Offer a range of washer sizes, including large machines for duvets and bedding, which many people cannot wash at home.
- Efficiency. Water- and energy-efficient machines can lower running costs. Ask suppliers for efficiency data and compare it with your local utility rates.
- Service and parts. Choose machines that local technicians know how to repair and that have parts readily available.
- Payments. Coins, cards, phone payments and loyalty apps each have pros and cons. Many owners now offer card or app payments alongside or instead of coins. Payment processors such as Stripe, Square, PayPal and Adyen can support card payments for services like wash and fold, but check current features, pricing and privacy policies.
Laundry and dry cleaning software such as CleanCloud and SMRT Systems can help with tasks like order tracking, customer notifications and payments, depending on the product. Compare current features and pricing with your own workflow before you choose.
Add services beyond self-service
Self-service machines can be the base of your income, but extra services often make the business more resilient and use machines during quiet hours.
Wash and fold
Customers drop off laundry and collect it washed, dried and folded, usually priced by weight. It suits busy professionals, parents and students. Use clear bags, tags and a check-in process so nothing gets mixed up.
Pickup and delivery
Collecting and returning laundry widens your reach beyond walking distance. Plan routes and time slots carefully so driving does not eat your margin, and check vehicle insurance for business use.
Commercial accounts
Gyms, salons, small hotels, holiday rentals and restaurants often need regular laundry for towels and linens. A few steady accounts can fill weekday mornings. Agree written terms on turnaround times, damage, pricing and payment.
Small extras
Vending for detergent and snacks, Wi-Fi, comfortable seating and phone charging all improve the customer experience. Keep the space clean and well lit, because that is often what reviews mention first.
A service and pricing template
List each service with its unit, turnaround and a rough cost to deliver. All amounts below are made-up examples, so research local prices and calculate your own costs.
| Service | Unit | Example price | Example direct cost | Turnaround | Best for |
|---|---|---|---|---|---|
| Self-service wash, large machine | Per cycle | $7 | $2 (water, energy, detergent if supplied) | About 1 hour | Bedding and big loads |
| Wash and fold | Per pound or kilogram | $2 per pound | $1 per pound (labor and utilities) | Next day | Busy households and students |
| Commercial linen account | Per bag | $25 | $14 | Twice weekly | Salons, gyms and holiday rentals |
Add your fixed costs, such as rent, insurance and loan payments, and you can work out a break-even point. In units, it is fixed costs divided by (price minus variable cost per unit).
Hypothetical example
Elena buys a small laundromat near a college. Self-service is busy on weekends but quiet on weekday mornings. She launches wash and fold for students and signs two local salons for towel laundry. Her staff process those orders between 8 and 11 on weekdays, when the machines were idle before. Using made-up figures, the extra services raise her weekly revenue without adding a single machine.
How to start a laundromat step by step
- Research the area. Study housing types, competitors and foot traffic. Visit at busy and quiet times.
- Choose buy or build. Compare existing laundromats for sale with the cost and timeline of a new build.
- Run the numbers. Estimate revenue per machine, utilities, rent, staff, maintenance and loan payments, and work out your break-even point.
- Set up the business. Choose a business structure, register, open a bank account and arrange insurance, including property, equipment and liability cover.
- Secure the premises. Check utilities, drainage, venting and permitted use, and have the lease reviewed by a professional.
- Get permits. Apply for the building, plumbing and business permits your area requires. Requirements vary, so ask your local authority early.
- Buy and install equipment. Use qualified installers and keep every warranty and manual.
- Set up payments and software. Choose how customers pay and how you track orders.
- Launch and promote. Set up a Google Business Profile with your hours and services, and run an opening offer for the neighborhood.
Keep machines running with a maintenance routine
A machine with an "out of order" sign is lost income and a poor review. A simple, written routine saves money over time.
- Daily. Clean lint traps, wipe door seals and detergent drawers and check for leaks or error codes.
- Weekly. Run cleaning cycles where the manufacturer recommends them, check payment systems and inspect hoses.
- Monthly or quarterly. Clean dryer vents and ducts, check belts and bearings and review service logs.
- Annually. Book a professional service for gas, electrical and venting systems.
Dryer lint is a fire risk, so follow manufacturer guidance closely. Workplace safety rules also apply if you have staff. In the UK, employers with 5 or more employees must have a written health and safety policy and a written risk assessment. In the US, OSHA's general duty clause applies.
Your laundromat launch checklist
- Visit at least three local laundromats at busy and quiet times
- Decide whether to buy an existing business or build new
- Check utility bills against claimed revenue if buying
- Confirm water, drainage, venting and electrical capacity
- Have the lease reviewed and aim for a term that matches your investment
- Choose a machine mix that includes large-capacity washers
- Pick payment options and order tracking software
- Plan wash and fold, delivery or commercial accounts
- Write a daily, weekly and annual maintenance routine
Frequently asked questions
Is a laundromat a passive business?
Not entirely. Self-service can need less daily labor than many businesses, but someone still has to clean, maintain machines, handle customer issues and manage money. Adding wash and fold or delivery makes it more hands-on.
Should I accept only cards and apps?
It depends on your customers. Card and app payments reduce cash handling, but some customers still prefer coins. Many owners offer both, at least at first, and watch how people actually pay.
How long should my lease be?
There is no single answer, but because equipment and build-out are expensive, many owners look for a long lease with renewal options. Have a solicitor or attorney review the terms before you sign.
Do I need staff on site?
Some laundromats run unattended for part of the day, while others are always staffed. Staffing helps with cleanliness, safety and wash and fold. Check local rules and your insurance policy before deciding.
Related reading
The bottom line
Starting a laundromat comes down to careful homework: the right location, a building that can handle the utilities, a lease long enough to recover your investment, reliable machines and a maintenance routine you actually follow. Services like wash and fold and commercial accounts can turn quiet hours into steady income.
Start by visiting local laundromats this week with a notebook. Count the machines, watch the customers and note what you would do differently. Those notes will guide every decision that follows.
