July, 28, 2022 - 12 MIN. READ
Electric vehicle (EV) sales are growing exponentially, and more than 80% of EV drivers prefer to charge their cars at home. So, where does that leave the 80 million Americans living in multifamily properties? Perhaps it is time for pervasive multifamily EV charging.
The move to EVs is here, and it's gaining momentum. Soaring gas prices and the desire to live a more sustainable lifestyle are driving more people than ever to buy an EV or seriously consider one. Automakers are getting on board and making plans to go fully electric in the near future.
But range anxiety and concern over reliable EV charging station access remain a concern for many. Home charging is the only way to go for most new and prospective EV drivers. But home charging is not as straightforward for multifamily residents. Resultingly, EV charging stations for multi-family properties represent both a challenge and an opportunity for owners and operators.
You'll need a plan to take advantage of this opportunity and provide a new and valuable amenity to your residents. This guide tells you what you need to know about multifamily EV charging solutions, including benefits, options, implementation tactics, and what to watch out for as you develop and implement your EV charging strategy.
As you begin planning to implement EV charging stations for your residents, there's a lot to consider. Each of the items below are relevant to your strategy and will have a bearing on the practical and financial success of your EV charging implementation project.
Perhaps the first and most important question to ask is why you should implement multifamily EV charging stations for your properties. What is the value-add for your residents, and what are the benefits for you as a multifamily owner or operator? Let’s start with the benefits for your residents.
Benefits for your residents – Multi-family residents tend to be younger and more interested in sustainable lifestyles than previous generations. Studies have shown that the 63% of drivers likely to consider buying an EV are millennials and older gen Z, and members of those generations are key demographic targets for multifamily owners and operators.
What's more, they tend to value convenience and will often pay a premium for products and services that enhance busy lifestyles. Multifamily residents gravitate toward properties that offer the amenities they want and avoid those that lack them. Studies have shown that onsite charging could make the difference in moving into or remaining in one of your properties for the vast majority of EV drivers.
Benefits for you and your properties – EV charging in your properties can be a competitive advantage and will only intensify as more of your residents switch to EVs. That is just the beginning of the value-add you can expect.
EV charging has the potential to generate an entirely new source of revenue for your portfolio properties. Depending on your charging scheme and the usage level in your properties, this added revenue could be substantial. Remember that, as the EV wave accelerates, your EV charging revenue will increase.
Onsite charging at your properties also promotes an eco-friendly and green community. It shows that you and your properties support more sustainable lifestyles, helping your brand in the surrounding community. And it could potentially generate positive word of mouth, social media mentions, and web reviews.
You know that the competition for residents can be fierce and that offering unique amenities gives you a leg up with new and prospective tenants. EV charging is a cutting-edge amenity now that will help attract and retain residents. As EVs become more prevalent, onsite EV charging may well become an expected amenity. In other words, it may become almost a competitive necessity.
An additional benefit is the potential for increasing your property values. It's easy to see why. A property with happy and loyal residents, an innovative and green reputation in the community, and an established EV charging infrastructure on the balance sheet would likely result in a higher market valuation.
The 3 levels of EV chargers vary according to charging speed, implementation requirements, and cost. Level 3 chargers can cost up to $50,000 a piece, so, while they are blazingly fast, they are too expensive to be a viable option for most multi-family properties. That leaves Levels 1 and 2 as your EV charging options. Here are the pros and cons of each:
As the clear choice for most multifamily properties, Level 2 charging stations have tangible advantages in speed, cost, and implementation requirements. And your residents should find them to be a good fit for their EV charging needs, allowing them to fully charge at home overnight.
It should be noted, however, that, because Level 2 chargers typically require upgrades to a property's existing electrical infrastructure, implementation costs vary widely. Depending on the age of the building, the capacity of existing electrical panels and other infrastructure, the number of chargers installed, and even the level of service in the local neighborhood, the upgrades required could be substantial. It's recommended that you enlist the help of a professional electrical contractor early in your planning process to get a full picture of the work required and what it will cost to upgrade.
While a carefully planned and well-executed implementation should alleviate most pitfalls and risks, there will be a few items that you should be ready to handle should they crop up. There are also some important questions that should be answered early on in your planning, as they will significantly impact your project strategy.
An often-overlooked aspect of implementing EV charging stations for multifamily properties is the introduction of the units to your residents. If your residents know how to use the new EV charging stations, they will likely buy in and use them. The success of your initiative and the intended resident satisfaction depends largely on promotion and engagement, including:
While the benefits of EV chargers in your properties should be clear, no charging strategy would be complete without an in-depth analysis of their financial implications. Important financial implications of EV chargers include costs, payment methods, and incentives.
Perhaps your implementation initiative's most impactful financial implication is EV charger installation costs. Several factors contribute to the total installation cost, including the degree and type of electrical infrastructure upgrades required, the number and locations of installed chargers, and the cost of the installed units. Due to the variances between properties, it is impossible to project a "one-size-fits-all" estimate of what your costs will be, but these general component costs will give you some guidelines:
It is recommended that you complete an assessment of your electrical panel, wiring, outlets, and other existing infrastructure as early in the planning process as possible since upgrade costs are the biggest wildcard in the entire project.
Pricing and payment mechanisms are important components of your EV charger strategy. While you may offer the service as a free amenity, you may decide to charge your residents for usage instead.
Charging fees can cover the installation and maintenance costs or be booked as an additional revenue stream depending on your preferences. Whatever you decide, it is important to integrate any projected revenue into your overall strategy and into your net operating income (NOI) calculations.
Should you decide to charge fees, you have some options, including:
Within these options, you can get even more granular on pricing. For instance, you could charge for access, for the amount of electricity used, or both. The level of granularity may depend on the data-tracking capabilities of the equipment you install.
As the EV movement progresses, many governmental organizations, utility companies, and even equipment manufacturers have stepped up with multifamily EV charging incentives to promote the development of charging infrastructure. Though many of these are localized and specific to a particular area, they are increasingly common. With a little research, you are likely to find offsets for your properties regardless of where they are located.
It pays to research, as these incentives can add up and significantly reduce your procurement and installation costs. One great resource to consult is the Alternative Fuels Data Center website run by the US Department of Energy. Here are some examples of incentive programs that can help offset the cost of EV chargers in your properties:
Electric utility credits and incentives – Over 3,200 local electric utilities offer incentives to their customers, including property owners, to encourage the build-out of EV charging stations for multifamily buildings. Details vary, but incentives include credits and rebates and may cover equipment purchases, installation costs, or a combination.
Federal incentives – The federal government sponsors several programs that help cover the cost of multifamily EV charging stations.
State incentives – Many states offer incentive programs, so you should check what is available in your home state. A search of the US DoE's Alternative Fuel Data Center lists more than 60 state-run incentive programs across the US. A couple of examples include:
Multi-family EV charging stations represent a unique opportunity for property owners and operators. But careful planning, detailed research, and a comprehensive strategy are required to make your EV charger initiative a success.
You will have to make some key decisions on what chargers to install, where and how to set them up, and how you will allocate usage and charge for it. Special attention should be paid to costs and incentives to ensure the financial viability of your project. You may also want to enlist experts in electrical installation and equipment procurement to increase efficiency and safety while minimizing costs.
With a well-conceived strategy and the help of the right tools and partners, you can expect to boost resident satisfaction and loyalty, increase property values and NOI, and even add a new revenue stream.
Raiven serves multifamily properties and property owners by providing the lowest prices on equipment, parts, and maintenance supplies as well as a purchasing platform that makes buying fast and efficient. Key benefits include:
Raiven is your one stop to save time and money. Ask our clients Core Realty, Lyon Living, or Oaks Property Management what we’ve done for them. Visit Raiven to learn what we can do for you.
If you need your EV charging stations installed, be sure to visit Qmerit, the nationwide leader in electrification solutions.