The decision to either rent or purchase linens depends highly on the individual situation, we have outlined some of the benefits and challenges to each option below:

Linen Rental (Outsourced Laundry)

BENEFITS

1. More convenient compared to running your own on-premise laundry;
2. No set up costs;
3. Responsibility for stock control, quality control, operation of equipment and logistics is held by the Linen Service provider;
4. No labour costs or staffing required.

CHALLENGES

1. Higher overall cost when compared to doing the washing in-house;
2. Can potentially run out of linen if demand outstrips supply (for example, if there is a surge in hotel reservations);
3. There may be limited linen grades and styles available;
4. The linen service dictates the price you pay, giving you less control over the total cost;
5. Smaller properties with less volume will pay more per item than larger facilities;
6. Required to pay ongoing rental costs;
7. An outsourced commercial linen service is not a complete solution to your washing needs. Most linen service providers will not wash delicate or one-off items. If they do, they may charge a significant additional fee.

On-premise Laundry

BENEFITS

1. Lower overall costs than an outsourced laundry service;
2. Flexibility to wash your linen on demand, meaning that it is available when you need it;
3. Option to use finer quality and custom grade linens to enhance customer satisfaction;
4. Maintain greater control over total cost by washing on demand only;
5. Smaller properties are not disadvantaged by washing smaller volumes;
6. No ongoing rental costs required;
7. Ability to wash practically any item, including delicate or heavily-soiled items, without a fuss.

CHALLENGES

1. An on-premise laundry is more labour intensive when compared to an outsourced arrangement;
2. Upfront costs will be required to purchase machines and linens. However, these costs can be minimised by a rental or leasing purchase agreement. See here (link to other Feb article) for more information;
3. The responsibility for stock control, quality control, operation of equipment and logistics is yours. This is not an issue under a rental plan or using a comprehensive maintenance plan;
4. There may be potential labour costs and insurances if you need to employ someone to run the laundry.

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