close up play room closet behind, utility room. open it like this to make laundry closet at the back door. Enclose the water heater. use space where w/d are now at right of door as a little built in seat for bags & coat hooks over it.
Four wall-mounted drying racks in a mudroom create an instant indoor drying room; recreate the look with four wall-mounted racks from Ikea. For something similar, consider Ikea's wall-mounted Grundtal Drying Rack;