What should I check in a laundromat’s lease before buying?

A laundromat usually sits in rented space, so the lease decides how long the business can stay where its customers already are. The machines are heavy, plumbed in and expensive to move. Read the lease as carefully as the financial statements, and ask for the full signed copy with every amendment.

Term and renewals against machine life

Look at how much time is left and whether there are renewal options you can use. Then compare that with how long the washers and dryers are likely to last. A lease that ends before the machines do is a risk, and a long one on ageing machines means replacing them while still paying rent. Ask how renewal rent is set.

Plumbing, venting and gas lines

Laundries depend on water, drains, dryer venting and often gas. Find out who owns and repairs each of these, and who pays when a line fails. If the building’s systems are the landlord’s, ask how quickly repairs happen. If they are yours, ask the seller what they have cost to maintain.

Exclusivity, restoration, hours and access

If the laundromat is in a plaza, check whether the lease stops the landlord from renting to another laundry. Read what you must do with the space and the equipment at the end of the lease. Check the permitted hours, parking and signage, since customers need to find the door and use it late.

• Remaining term, renewal options and how renewal rent is set
• Who owns and repairs plumbing, venting and gas lines
• Any exclusive right against a competing laundry
• Restoration duties and permitted hours, parking and signage

The machine inspection page covers the equipment itself. Whether the lease can be assigned to you, and on what conditions, is a legal question, so put it to your lawyer early.