I agree with the above comment about blocking the light ...

What If you got some cool new cabinets made. Or maybe a smaller door where the boiler is - make that into a closet. With some shelving above the boiler.

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Then I’d redo the cabinet doors. Or remove and do shelving ...

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There are so many options and things you can do to the space. Just unsure of how much you want to and are ready to do here.

Replace the light.

New shades.

Art over the electric panel.

New tile.

Wallpaper?

So many things you can do!! Have fun with it!!!

Look into refacing the cabinets if the boxes are in good shape. The doors are such an old style that painting them won't make enough of a difference. However, if for cost reasons you go with painting, maybe something vibrant (blue-green) would distract from the style and be fun (with new pulls)? The flooring is also outdated. It's partly the darker grout against the tile that is aging. Does it just need to be cleaned up? It takes a lot of elbow grease, but a good cleaning could give it a different look.

Our landry room is very small, the challenge was to find a washer/dryer that would fit the depth of the room. We also installed a bi-fold door the tucks in, out of the way, which matches the other doors in our condo. I like your idea of a farmhouse door or one that is frosted glass to let in light. Removing upper cupboards and going with open shelving would open the space up. You could install peel & stick vinyl tile, brightening the room by reflecting light and adding visual interest. Declutter as much as possible. Looking forward to see what you decide to do.

I don’t know your budget or what kinds of changes can be made, but this reminded me of your room …

Ignore everything on the right (those are some big lights!) … just showing for the cafe curtains and how they did the storage over the washer and dryer. It’s an interesting and fresh look instead of bulging cabinets.

But you may need your current cabinet storage — if so, I’d paint them. The orange stain clashes badly with the units, it will affect all of the decor in there.

For the water heater, a folding screen would look good, or a pegboard … would be a place you could hang things on.

If possible: a new ceiling light, curtain, non-slip rug, paint (walls and cabinets), hide water heater. Go from utilitarian to charming. :)

Look through inspiration pictures for ideas you could incorporate into your room. Lots here, for instance:

https://www.houzz.com/photos/laundry-room-ideas-and-designs-phbr0-bp~t_753

Check your water heater manual to see how close flammable material (towels, etc.) can be placed safely. You can download a copy from the manufacturer website. That will determine if that area can be used for storage or must be kept clear for fire safety.

We are going to run the flooring that’s in our kitchen to continue with the laundry room.

We might suggest at least updating the cabinets. You could add a fun wallpaper or maybe roman shades over the window as well. Here are a few of our laundry room designs to aid you further:

High-End Renovation: Laundry Room · More Info

Gower Street: Laundry · More Info