Electric vehicles (EVs) are taking over the roads. Initially, Tesla seemed to sprout like a mushroom in a mossy forest, but now every automaker is joining the EV revolution. By 2027, one in three cars will be electric. Below, you’ll see how quickly electric vehicles are entering the market.
With this type of growth, it is almost necessary to install chargers on your property. This is something you should start thinking about.
What to consider before adding an electric vehicle charger
Multifamily Landlords should ensure their properties are suitable for electric vehicles to increase rental income, as many EV drivers will become renters looking for a convenient place to charge their cars overnight.
However, adding charging facilities to your multifamily property is more complicated than adding external outlets or standalone chargers to a single-family home—it can be expensive and complicated. Here’s what you should consider.
Lobby your tenants
If you own a large apartment building, many tenants may already own or plan to purchase electric vehicles, so installing an electric vehicle charging system is a good idea perhaps Good idea.
However, if you own a single-family home or a small multi-unit building, asking your tenants about their needs for electric vehicle charging facilities and whether they plan to purchase an electric vehicle immediately can save you unnecessary costs – at least in the short term. .
Assessing the costs associated with increasing electric vehicle charging facility
add a Level 2 Chargers for single-family homes are relatively simple. It involves hiring a licensed electrician to check whether your existing panel box supports a 240-volt charger. If not, they will have to perform upgrades to support it, which may cost $350+depending on where you live. The charger can any one Install in garage or outdoors with weatherproof covering.
Renovating old apartment buildings can expensive
Multifamily building costs could rise significantly, from US$2,000 to US$6,500 per unitdepending on the complexity of the installation and the need for electrical upgrades.
If you own an older apartment building, there are many More factors to considerespecially the cost of having enough chargers to serve all vehicles and the cost of rewiring, cabling and trenching to connect pipes to all charging areas, If allowed, and regulations.
It is also important to have enough grid power to service the property. Building charging facilities so they can grow as EV use increases will help control costs.
Some cities are mandating electric vehicle charging for new multi-family residences building
For new construction, the process is simpler and often less expensive. Electric vehicles can be charged be decomposed Incorporate layout and plans before construction begins. Some cities include chicago and?Salt Lake Cityrequiring new multifamily buildings to include the infrastructure needed to support electric vehicle chargers.
Whether you own a single-family home or an apartment complex, you need a Level 2 charger (approximately 25 miles of range per hour of charge) recommend. Level 1, of which pluggable Plug into a standard 120V socket, too slow (Regular sized cars can take up to 24 hours to charge). Level 3 or DC charging (a range of over 100 miles in 30 minutes) is only used in commercial settings such as charging stations and supermarkets.
Financial considerations for adding an electric vehicle charger
Owners must consider For exclusive use only For tenants, make sure no one else can use it your electric car Charge their cars. You may also consider having your tenants pay the electric bill, but this is not necessary. Fortunately, have app Suitable for multi-family residential use That Provides end-to-end payment options, bookings and monitoring of every expense.
Additional costs for landlords include charger maintenance and upgrading new models to accommodate the growth of electric vehicles.
Incentives covering charging upgrades
Many incentives cover the cost of installing charging equipment. Some are national and some are regional. Inflation Reduction Act Tax credits for electric vehicle chargers installed in certain census tracts.
state and local government There are also their own Program. Depending on the type of property, charging level and whether the parking space is shared or individual, some can cover all or part of the charge.
Charging tenants for electric vehicle charging
Electric vehicle charging has become a must-have for many tenants, with many putting pressure on landlords to invest – despite Charging authority varies by state. However, EV chargers offer revenue-generating potential such as attracting affluent, environmentally conscious tenants, lease renewals, New charges, and higher property values.making installing them a breeze.
Additional revenue from pay-per-space
By turning each parking space into a gas station, multifamily owners can charge tenants a per-kilowatt-hour usage fee or an additional monthly fee, which included exist lease agreement. A $100 profit per charging spot is a small price to pay for tenants, considering they have to spend time charging their cars elsewhere.
Tenants who own electric vehicles will generally Charge the car for four to eight hours a day, usually at night. depending on To price the landlord, this can become An important source of income. The fixed fee is the simplest to calculate. Kilowatt hour based payment plan used All landlords will be allowed to earn profit based on the amount of their payments.
Sustainable development is a big issue painting
Environmentally conscious tenants are typically high-income earners who don’t mind paying a premium because they know their apartment adheres to ESG goals by reducing the impact of greenhouse gas emissions in the community. Green initiatives are a way to maximize rents while benefiting the environment.
government funding
Business owners and homeowners are eligible 30% tax credit help cover up cost Install electric vehicle charging facilities. it Capped $100,000 per charger for businesses and $1,000 per charger for residential charging stations. Now, There is considerable incentive for governments to switch from fossil fuels to sustainable energy, in accordance with this The country is moving away from coal, gas and oil to meet its power needs. However, these tax benefits Unlikely final forever As more and more countries converted to Christianity.
It is a good idea to install charging stations where government initiatives exist. Multifamily ROI Charge Calculator charging pointif an investor spends $11,200 to charge 10 residents’ cars, they will recoup their initial investment in 1.6 years. After recouping their investment, their annual net profit will be $6,858 – an annual return on investment of well over 50%.
Solar electric stations in Sun Belt states
In sunny states, Pair your EV charger with solar panels and batteries Or other solar storage could be a great way to reduce load on the grid, drawing power from the sky to charge tenants’ cars (which they pay for) while lowering overhead costs. Various type Electric vehicle solar panel chargers are available—from traditional panels mounted on a home roof to large garage slab arrive Single space solar charging.
final thoughts
As America becomes energy independent and achieves sustainable energy goals to combat climate change, there is no doubt that electric vehicles are here to stay. this Provides landlords with another opportunity to earn additional income to offset installation costs and ultimately help increase positive cash flow.
Whether you rent a single-family home, an apartment, or a mixed-use building, investing in electric vehicle charging facilities future-proofs your investment. After all, you provide a service to your tenants: charging convenience and less time spent at gas stations or charging facilities.
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