We used to hire sheets from a linen company, but for the last few years have been washing our own. It's obviously more work, but is certainly significantly cheaper for us. Also when you do your own you are in control, we did have incidents with the laundry when the wrong linen was delivered or nothing at all. My advice to anyone thinking of going from hire to self wash would be to make sure that you allocate enough time to wash and dry the sheets. Also even if you are a small hostel, it's best to have at least two washers and two dryers - if you have a breakdown and no backup it can get messy very quickly!