Multifamily - Laundry Contract Cancellation - 10 year contract
I currently have a 10 year contract at my low-income apartment complex(24 units) with an outside company for them to provide and maintain washer and dryers on-site. Between electric/water &amp; strain on the hot water system. They are more of a negative than a positive. Has anyone had luck getting out of these contracts? Sounds like they are notoriously hard to break?

Update: Well I got the last laugh on this one. Sold the property. That's one way to void a contract. On my showing to potential buyers -- For the third time in a year they had drilled out the coin boxes and stole the money. Not going to miss the headaches. 

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[{"id": "hnvc5xu", "text": "Ask them.", "replies": [{"id": "hnvje6i", "text": "Yea ask for a buyout cost and run the math if it\u2019s accretive to do it yourself or just let the contract run", "replies": [], "depth": 2}], "depth": 1}, {"id": "hnvcgl4", "text": "Who's the company? I'm also in affordable housing. Idk if that affects the contract but glad to see someone else in that niche.", "replies": [{"id": "hnvd8bk", "text": "Its with Jetz Service, Co. Took over the contract from previous owner 3 years ago and they had me renew right away before I knew any better. Lots Learning/growing pains on this property coming from SFR but ready to tackle this finally.", "replies": [{"id": "hnvdiiu", "text": "Hmmm...I may have a CSC contract. I'll take a peek at the language. There has to be a cancellation clause", "replies": [{"id": "hnveqeu", "text": "Ours is just a 30 day written notice of cancellation. Happy to look at your lease if you want", "replies": [], "depth": 4}], "depth": 3}, {"id": "hnvnpbn", "text": "Hmmm....had you \"renew\"...not sign a new contract.\n\nThat seems to me a slight amount of fear that without that signature, you couldn't be held liable...ergo....I'm feeling a bit of duress.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hnvgzrx", "text": "DO NOT WHATEVER YOU DO SIGN WITH ONE OF THESE SERVICES. \n\nI've done a decade of multifamily management before moving to commercial brokerage. I have dealt with 3 of these companies, and I could not recommend steering clear enough away from them. These companies are usually so spread thin that they physically cannot take care of the amount of machines they have under contract. When a machine breaks, they are the only party who can do maintenance on their machines. Good luck trying to schedule a repair for a machine let alone getting the tech to actually show up or even solve the issue. Even if they identify the issue they will likely not have the parts required to fix (go fucking figure). All the while your tenants are pissed and the only working machines are getting overused. Hopefully the one thats broken gets repaired before the overworked one breaks and you're stuck with zero machines. As you know getting out of these contracts is notoriously difficult. I spent 1 year trying to get out of one of these services and ultimately pursued legal action after them for non performance. \n\nSpend the money to get Speedqueen industrial machines. You will save money in the long run, and they are standard to fix.", "replies": [{"id": "hnvhqx9", "text": "Thanks for the reply, this is the same conclusion of I came to, but unfortunately I am already in a signed contract. One year fight was what I was afraid of, my rep hinted when I requested a copy of my contract that this is binding and they won't cancel willingly.", "replies": [{"id": "hnvjqz5", "text": "Good luck my guy. I\u2019d consult lawyer &amp; seek exit strategy. Identify the contract renewal window and make sure you send documented cancellations to the company. If one of the machines does break &amp; you could potentially be in the situation I was describing - DOCUMENT everything &amp; try to void the agreement for non performance the moment they violate it. If they violate any of your rights as a consumer file an FTC complaint.", "replies": [{"id": "hnvtiwl", "text": "Would consumer protections apply in this case? Isn't it a business to business transaction?", "replies": [{"id": "hnvvei5", "text": "Absolutely. The FTC loves to stick their dick into anyone committing \u201cunfair or deceptive acts or practices in or affecting commerce\u201d. It acts as more of a scare tactic than anything the FTC can\u2019t resolve individual complaints but if you end up on the FTC radar you are not going to like it.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "hnwayne", "text": "It doesn't matter if it's binding or not; if they fail to live up to it, it's breach of contract.  I have only had good experiences with outsourcing the laundry machines.  Often there is a signing bonus and monthly payment.  The contracts are highly negotiable.  I would visit other MFs in the area and see who is handling their laundry if it looks well taken care of.", "replies": [], "depth": 3}, {"id": "hny0y5c", "text": "I had to buy them out of the contact and after some back and forth we found a decent number to part ways. These guys are crooks and I was more than happy to give them a little now to not have to see them ever again.", "replies": [{"id": "hny33kt", "text": "Yea. I've learned alot of rough lessons in my foray into multi-family. Add one more. I've contacted a lawyer as this is out of my personal/temperament skill set. Appreciate the feed back.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hnvh4mf", "text": "Read your contract.", "replies": [{"id": "hnvip6d", "text": "I have reviewed and I don't see a specific section on cancellation in mine, just auto renewal. Not saying its not there as I am not an expert but I am not seeing it.", "replies": [{"id": "hnwbq4u", "text": "Why are you cancelling? Because they don't fix in a timely manner? Is that in the contract?", "replies": [{"id": "hnwjp1s", "text": "Cost mostly, I get about 100 dollars a month in revenue share and my water/electric is around 2k+ monthly. That said, I do I provide hot water to the entire building so not all of that cost is directly linked to the washers and dryers. It also has been causing maintenance issues with my hot water heaters that I am hoping would be reduced with less hot water requirements. Have had them broken into a few times(drilled out lock boxes where the money is kept, which isn't an easy or quiet task for someone to do). The laundry provider has done nothing wrong, just looking to no longer provide the service for the above reason.", "replies": [{"id": "hnwvgql", "text": "You might think about an app/cashless system.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ho15rhy", "text": "Look for an option to buy the machinery/ maybe cheaper to buy than to renew.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hnw2rh7", "text": "That\u2019s crazy, I just heard your laundry room is being remodeled and will be inaccessible and the new electrical and plumbing won\u2019t accommodate their current machines. What a bummer for them.", "replies": [{"id": "hnx34hg", "text": "Wow I did this! Made it into a studio apartment. Unfortunately, for OP, I was beyond 10-years and was now on month to month. Bro, that machines are still in my shed several oaths later. And... yes, their machines go down and they always blamed us the owners. \n\nNow, OP, sorry but I would seek legal counsel to get out of their contract. It's pretty tight. On my other properties I was able to finance speedqueens and call it a day.", "replies": [], "depth": 2}], "depth": 1}]