For property owners, addressing vacancies and optimizing rents are enduring challenges. Particularly in today's rental market, the provision of facilities that accommodate the changing lifestyles of tenants has become a major factor in determining the competitiveness of a property.
Among these, the installation of indoor laundry facilities is attracting attention. Traditionally, laundry facilities were often located on balconies or outdoors, but today they are increasingly recognized as a must-have facility for tenants.
In this article, we will explain in detail the specific impact of installing a laundry room on rents, based on INA&Associates' experience in dealing with numerous real estate owners. We aim to help you make informed investment decisions by providing data-based analysis on everything from installation costs to payback periods, as well as best practices.
In the latest 2024 ranking of popular amenities for rental properties, in-room laundry facilities are ranked second for both single and family properties. This indicates that the awareness of this facility as a must-have, "I can't move in without it," is rapidly growing among tenants.
Particularly noteworthy is the rise in ranking in properties for singles. The fact that in-room laundry facilities, which were previously ranked third, have risen to second place is a true indication of the changing lifestyles of tenants, especially the younger generation. Today's tenants have a strong resistance to installing washing machines outdoors, with many saying that they do not want to place washing machines outside and that they are likely to break if placed outside.
The table below shows the ranking of popular facilities in 2024.
| Rank | For singles | For family |
|---|---|---|
| 1st place | Air conditioner | Air conditioner |
| 2nd place | Indoor laundry room | Indoor laundry room |
| 3rd place | Intercom with TV monitor | Intercom with TV monitor |
| 4th place | Independent wash stand | Fired-water heater |
| 5th | Separated bath and toilet | Separate bath and toilet |
As these results clearly show, in-room laundry facilities are positioned as the second most important facility in the current rental market, after air conditioning.
Analysis of actual market data shows that the installation of in-room laundry facilities has a noticeable impact on rents. In one case in which we were involved, the monthly rent of a studio apartment increased by 12,000 yen by installing an indoor laundry room.
In another case, the installation of an in-room laundry room prevented the rent from falling by 3,000 yen to 5,000 yen in a property that had been under increasing downward pressure due to the age of the building. This means that the property's competitiveness was improved and the market rate was maintained due to the enhanced facilities.
Looking at regional trends, the effect was particularly strong in urban areas, where rents increased by 3,000 to 8,000 yen per month on average in areas with many properties for singles. On the other hand, for family-oriented properties, more substantial rent increases can be expected by installing a new changing room or replacing the wash stand in conjunction with the installation of a laundry room.
The table below summarizes the effect of rent increases by property type.
| Property Type | Average Rent Increase |
|---|---|
| Studio | 3,000 - 8,000 yen |
| 1K/1DK | 5,000 - 10,000 yen |
| Family | 8,000-15,000 yen |
Even more important than an increase in rent is an increase in occupancy rate. Studies have shown that the installation of in-room laundry facilities increases the average number of previews by 30% to 50% and shortens the vacancy period by an average of two months.
Of particular note is the improvement in tenant demographics. Properties with indoor laundry facilities tend to receive more applications from tenants with more stable incomes. This is related to the fact that tenants who value modern amenities generally have a higher ability to pay.
The cost of installing an indoor laundry room varies widely depending on the structure of the property and the condition of existing facilities, but generally costs between 100,000 yen and 250,000 yen to implement. This cost includes installation of the washing machine pan, water supply and drainage plumbing, electrical work, and floor and wall repair work as needed.
A closer look at the cost breakdown shows the following components
| Construction items | Cost price | Remarks |
|---|---|---|
| Washing machine pan | 10,000 - 30,000 yen | Varies depending on size and material |
| Water supply piping | 30,000 - 50,000 yen | Depends on distance from existing piping |
| Drainage piping | 40,000 - 70,000 yen | Depends on the complexity of the drainage route |
| Electrical work | 10,000 - 20,000 yen | Electric outlet installation and wiring work |
| Floor and wall repair | 10,000 - 30,000 yen | Depends on existing conditions |
| Installation and other expenses | 20,000 yen - 50,000 yen | Varies depending on the contractor |
| Total | 120,000 - 250,000 yen | Average 150,000 yen |
One factor that greatly affects costs is the location of existing water supply and drainage pipes. While costs can be reduced if the pipes are installed close to the kitchen or bathroom, the plumbing work tends to be more complicated and expensive if they are installed far away from the kitchen or bathroom.
In addition, condominiums may require approval from the management association, and additional procedures and costs may be incurred depending on the details of the installation. It is important to confirm with the management company or management association in advance.
Let's calculate the specific payback period for the installation cost. Based on the previous example, we will calculate the payback period for different scenarios.
Scenario 1: One-room property (with rent increase of 5,000 yen)
-Installation cost: 150,000 yen
-Monthly rent increase: 5,000 yen
-Payback period: 150,000 yen ÷ 5,000 yen = 30 months (2.5 years)
Scenario 2: 1K property (with rent increase of 8,000 yen)
-Installation cost: 180,000 yen
-Monthly rent increase: 8,000 yen
-Payback period: 180,000 yen / 8,000 yen = 22.5 months (approx. 1.9 years)
Scenario 3: Including the effect of shortening the vacancy period
-Installation cost: 150,000 yen
-Monthly rent increase: 5,000 yen
-Effect of shortened vacancy period: 120,000 yen (for 2 months)
-Actual payback period: (150,000 yen - 120,000 yen) / 5,000 yen = 6 months
Thus, if the effect of shortening the vacancy period is included, the payback period will be significantly shortened. Especially for properties with prolonged vacancies, the installation can be expected to have a highly immediate effect.
To maximize the investment effect, it is important to consider the following points
1. Optimize the installation location
In consideration of the housework flow line, installation near the changing rooms and washrooms is ideal. This improves convenience for tenants and enables higher rents to be set.
2. Combination with other facilities
Installing an independent wash stand or a new changing room at the same time as installing a laundry room can increase rents further through synergistic effects.
3. Appropriate timing
By implementing the project in conjunction with renovation work at the time of vacancy, construction costs can be reduced and vacancy periods minimized.
4. Consideration of local characteristics
Investment decisions based on the property's location characteristics are important, as they are particularly effective in areas with a large number of single occupants.
5. Long-term perspective
Once a capital investment is made, the effect lasts for a long period of time, so it is important to take into account not only the short-term payback period but also the long-term profitability, such as 10 or 20 years.
The table below shows payback periods and long-term profitability.
| Payback Period | Cumulative Profitability Effect (for a monthly increase of 5,000 yen) |
|---|---|
| 3rd year | 180,000 yen (profit of 30,000 yen after recovering 150,000 yen of installation cost) |
| 5th year | 420,000 yen |
| 10th year | 1,020,000 yen |
| 15th year | 1,620,000 yen |
As you can see, a very high return on investment can be expected in the long run.
To successfully install an indoor laundry room, three conditions must be met: water supply, drainage, and electricity. It is important to check these conditions in advance and plan appropriately.
Water Supply Conditions
Water supply to a washing machine requires appropriate water pressure and stable water volume. When branching off from an existing water supply pipe, it is necessary to check the pipe diameter and water pressure, and if necessary, consider installing a pressure booster pump. Particularly in high-rise properties, prior water pressure measurement is essential, as the washing machine may not operate properly due to insufficient water pressure.
Drainage conditions
Regarding drainage, it is necessary to secure a drainage route that can properly dispose of wastewater from the washing machine. If it is difficult to connect to an existing drainpipe, a new drainage route will need to be constructed, which may significantly increase costs. The slope and capacity of the drainage pipes are also important factors, and a detailed survey by a professional contractor is recommended.
Electrical Requirements
A dedicated electrical outlet (15A or higher) must be installed to power the washing machine. We will check whether the existing electrical capacity can handle this and, if necessary, add a distribution board or perform wiring work. Particularly in older properties, electrical capacity may be inadequate, so a preliminary survey by an electrician is important.
Please refer to the checklist below to confirm installation requirements.
| Items to be checked | Checkpoints | Corresponding method |
|---|---|---|
| Water supply | Water pressure, water volume, piping location | Water pressure measurement, piping survey |
| Drainage | Drainage route, slope, capacity | Drainage test / plumbing survey |
| Electricity | Electrical capacity, wiring, outlet location | Electrical capacity survey and wiring plan |
| Structure | Floor Strength/Waterproofing | Structural Survey / Waterproofing |
| Regulations | Building Standard Law, Management Regulations | Legal Confirmation / Management Association Approval |
By following appropriate construction procedures, we can both shorten the construction period and ensure quality. The general construction flow is as follows
1. Preliminary survey and design (1 week)
A site survey is conducted by a specialized contractor to confirm the water supply, drainage, and electrical conditions in detail. At this stage, the final decision on the installation site and detailed design of the construction work are made.
Explanation to the management association and neighbors (1 week)
In the case of condominiums, we will notify the management association of the construction and explain the construction to neighboring residents. Explaining in advance about noise and vibration during the construction period will help prevent problems.
3. Material procurement and preparation (3 days)
We will procure washing machine pans, plumbing materials, electrical components, etc. Selection of quality materials will ensure long-term durability.
4. Plumbing and electrical work (2-3 days)
Water supply and drainage plumbing and electrical work are performed. At this stage, it is important to take future maintenance into consideration.
5. Finishing work (1 day)
Floors and walls are repaired, and washing machine pans are installed. Aesthetically pleasing finishes will enhance tenant satisfaction.
6. Operation check and handover (half day)
We actually install the washing machine, check its operation, and confirm that there are no problems before handing it over.
Based on past cases, the following failure patterns can be found. It is important to understand these in advance and take appropriate countermeasures.
Example 1: Mistake in selection of installation location
In some cases, the installation location was determined without taking into consideration the housework flow line, resulting in poor usability for the residents and failure to achieve the expected effect.
Countermeasure:
Assuming the resident's lifestyle pattern, select the installation location with emphasis on the flow line from the washroom or dressing room. Also, if possible, consider multiple candidate locations and select the most appropriate one.
Example of failure 2: Insufficient cost estimation
Insufficient preliminary investigation may result in the need for additional construction work after the start of construction, resulting in cases where the budget is greatly exceeded.
Countermeasure:
Obtain detailed estimates from multiple specialized contractors, and plan a budget with an allowance of about 20% as a reserve. Also, clearly define the terms of any additional work at the time of contract.
Example 3: Mismatch with tenant needs
In some cases, installation without considering the property's location and tenant demographics results in a mismatch with actual demand.
Countermeasure:
Investigate in advance the facility conditions and tenant demographics of competing properties in the vicinity, and invest in facilities that match the needs of the target tenant demographic.
Example 4: Inadequate maintenance plan
Insufficient post-installation maintenance planning can lead to long-term maintenance problems.
Countermeasures:
At the time of installation, construction should be carried out with future maintenance in mind, and a plan for periodic inspections should be developed. It is also important to explain to tenants how to use the system.
By taking these measures, the probability of success of a laundry room installation can be greatly improved. In particular, taking sufficient time for preliminary investigation and planning is the key to a successful project.
The installation of in-unit laundry facilities is an extremely effective investment strategy in today's rental market. As verified in this article, the investment benefits when properly implemented can be summarized as follows
Effect of rent increase
Rents can be expected to increase from 3,000 yen to 15,000 yen per month, with the effect varying depending on the property type and location. The effect is expected to be particularly high for properties for single persons.
Vacancy Countermeasure Effect
A 30-50% increase in the number of previews and a reduction in the average vacancy period by 2 months can significantly reduce opportunity losses.
Payback period
Generally, a payback period of 1.5 to 4 years is possible, and very high profitability can be realized in the long term.
Increased market competitiveness
By installing facilities ranked second in popularity, the property's market competitiveness can be greatly improved, and it can be expected to attract higher quality tenants.
Next Action
For property owners considering the installation of a laundry room, we recommend starting with a survey of the property's current conditions. Check the water supply, drainage, and electrical requirements, consider the location of the installation, obtain quotes from multiple vendors, and develop an investment plan.
INA&Associates also provides consulting services on capital investment to help property owners maximize their earnings. We provide total support, from developing the best investment strategy for your property's characteristics to introducing reliable installation contractors.
A1. Typical installation costs range from 100,000 to 250,000 yen. However, the cost may vary further depending on the location of existing water supply and drainage pipes and the structure of the property. The cost breakdown includes the washing machine pan fee, water supply and drainage piping, electrical work, floor and wall repair work, and installation costs. We recommend obtaining detailed estimates from several professional contractors in order to get an accurate cost figure.
A2. Particularly effective are properties for single persons (studio, 1K, 1DK). In urban areas, properties near train stations and in areas with many students and young professionals, higher effectiveness can be expected. In addition, for properties that are older and are concerned about declining competitiveness, modernization of facilities can be expected to significantly improve competitiveness. Although the effect is also possible in family-oriented properties, a higher effect can be realized by combining the modernization with other facilities (e.g., 追焚き機能, independent washbasin, etc.).
A3. The typical construction period is about 2 weeks from preliminary survey to completion. The breakdown is: 1 week for preliminary survey and design, 1 week for notification to the management association and explanation to the neighbors, and 2-3 days for actual construction. However, if the plumbing work is complicated or if it takes time for the management association to approve the work, the time may be extended further. If there are tenants in the area, it is important to explain and coordinate with them well in advance to minimize the impact on their lives during the construction period.
A4. If there are existing tenants, it is important to carefully explain the necessity of the construction work and the benefits to the tenants and gain their understanding. Notify them in advance of noise and temporary suspension of water supply during the construction period, and schedule the work in consideration of the tenants' lifestyle as much as possible. In addition, emphasize that the construction will be more convenient for the tenants once it is completed and ask for their cooperation. In some cases, it may be necessary to consider reducing rent or providing temporary alternative housing during the construction period.
A5. Regular maintenance will extend the life of the facility and maintain resident satisfaction. We recommend inspecting the water supply and drainage piping, cleaning the washing machine pan, and checking the electrical system about once a year. It is also important to explain proper usage to tenants and prevent problems. It is sufficient to expect to spend approximately 10,000 to 20,000 yen per year for maintenance. Proper maintenance will extend the useful life of the facility and maximize the long-term return on investment.
The information in this article is based on information as of December 2024 and is subject to change due to market conditions or changes in laws and regulations. Investment decisions are the responsibility of each owner.