What Due Diligence Should You Do Before Buying a Laundromat in New York?

Buying a laundromat in New York can be a profitable investment—if you do it right. While location and revenue are important, many legal and municipal issues can make or break the transaction. At The Price Law Firm, we help buyers identify these risks before closing. Here is a due diligence checklist every purchaser should follow.

1. Confirm Zoning Compliance

The first step is to ensure the property is legally permitted to operate as a laundromat. Laundromats are considered commercial uses, and not all zoning districts allow them.

Ask:

• Is the laundromat use permitted “as of right”?
• Does it require a special permit or use variance?
• Is there any rezoning activity that could change permitted uses?

A zoning verification letter from the municipality or a land use attorney can clarify this.

2. Run Full Municipal Searches

Municipal searches can reveal hidden issues with the property that may not be obvious in a visual inspection.

Essential searches include:

• Building Department
• Fire Department
• Health Department
• Plumbing & Sewer Records
• Code Enforcement & Housing
• Street Opening/Sidewalk Permits

These can show open permits, fines, violations, or unpermitted work that could delay or derail your closing.

3. Review the Certificate of Occupancy (C of O)

A valid C of O is required for legal operation of any commercial property in New York. Do not assume the current owner has it covered.

Verify:

• That the C of O exists and is valid
• That it matches the current and intended use
• That there are no expired or temporary certificates

Operating without the proper C of O can result in hefty fines or shutdown orders.

4. Check for Open Violations

Open violations do not automatically disappear when you close. Without specific contractual protections, they become your responsibility.

Common issues in laundromats:

• Dryer venting and exhaust problems
• Improper plumbing or electrical work
• Accessibility and egress violations
• Hazardous waste handling issues

Make sure violations are either resolved by the seller or addressed in the purchase price.

5. Evaluate Environmental & Utility Infrastructure

Laundromats use significant amounts of water and require reliable infrastructure.

Important questions:

• Are sewer and water connections adequate and permitted?
• Are there underground storage tanks on the site?
• Is there a grease trap or filtration system in place?

Failure to verify these could result in costly repairs or environmental compliance issues.

6. Lease Review (If Purchasing an Existing Business or Tenant Occupied Property)

If you are buying a laundromat as an ongoing business or in a leased space, review the lease carefully.

Focus on:

• Permitted uses
• Lease term and renewals
• Responsibility for utilities, maintenance, and taxes
• Demolition clauses or early termination provisions

7. Business Licensing & Permits

Some municipalities require laundromats to register, obtain operating permits, or pass Department of Health inspections. This is especially common if vending, ATM machines, or snack sales are involved.

Check with the local city or village clerk for required business licenses.

Bottom Line: Do not Skip Legal Due Diligence

A laundromat might look like a turnkey operation, but without the proper legal groundwork, it can turn into a costly mistake.

Make sure to:

• Confirm legal use and zoning
• Verify all municipal approvals and certificates
• Uncover and address open violations
• Review infrastructure and leasing issues

Need Help Evaluating a Laundromat Purchase?

At The Price Law Firm, we represent investors and business owners throughout New York in commercial real estate acquisitions. If you are considering purchasing a laundromat or another small business property, contact us for experienced, thorough legal guidance.

Call 212-675-1125 or
Email jmc@thepricelawfirmllc.com to schedule a consultation.