Electric vehicles (EVs) are taking over the roads. Initially, Tesla seemed to have sprouted like mushrooms in a mossy forest, but now every automaker is jumping on the EV revolution. One-third of all cars could be electric by 2027. Below you can see how quickly EV cars are coming to the market.
With this growth, installing chargers on-site is becoming a necessity. Things to consider:
What to Consider Before Adding an EV Charger
Apartment complex Many EV drivers are renters looking for a convenient place to charge their car overnight, so landlords need to ensure their properties are EV-ready to boost rental income.
But adding charging to an apartment building can be more costly and complicated than adding outdoor outlets or stand-alone chargers to a single-family home. Here’s what you need to consider.
Soliciting tenants
If you own a large apartment building, installing an EV charging system may be a good idea, as many of your tenants may already own EVs or be planning to buy one. probably That’s a good idea.
However, if you own a single-family home or small apartment complex, asking your tenants about their need for EV charging equipment and whether they plan to buy an EV anytime soon could save you some unnecessary expenses, at least in the short term.
Evaluate the cost of adding EV charging facilities Facilities
Add Level 2 Installing a charger for a single-family home is relatively easy: hire a licensed electrician to check if your existing panel box will accommodate a 240-volt charger; if it doesn’t, you’ll need to upgrade it to accommodate it, which can be costly. Over $350It depends on where you live. The charger is Either Place it in your garage or outside with a weatherproof cover.
Renovation of an old apartment Expensive
Costs can rise significantly in apartment complexes; $2,000 to $6,500 per unitIt depends on the complexity of your installation and the need for electrical upgrades.
If you own an old apartment, There are more factors to considerIn particular, the costs of wiring, cabling and trenching to provide enough chargers to service all the vehicles and laying conduit to all the charging areas. permission, and regulation.
It’s also important to have an electricity grid to provide enough power to the property, and expanding charging facilities as EV usage grows will help keep costs down.
Some cities are mandating EV charging in new apartment buildings building
For new buildings, the process is simpler and usually cheaper. EV charging To be factored Incorporate it into your layout and plans before construction begins. Chicago and?Salt Lake Citynew apartment complexes will be required to provide the necessary infrastructure to support EV chargers.
Level 2 chargers (approximately 25 miles of range per hour of charging) for both single-family homes and apartments Recommended. Level 1 Can be plugged in Plugs into a standard 120V outlet too late (Charging a full-sized car takes up to 24 hours). Level 3, or DC charging (more than 100 miles of range on a 30-minute charge) is only used in commercial environments such as charging stations and supermarkets.
Financial Considerations for Adding EV Chargers
Landlords need to consider Dedicated use only For the benefit of the tenants, to prevent others from using the facility Your EV To charge the car. You can also consider having your tenants pay a fee for their electricity usage, but this is not required. Fortunately, There is Apps Adjusted to suit the purpose of the apartment complex that It offers end-to-end payment options, bookings and monitoring of all charges.
Additional costs for homeowners will include maintaining the chargers and upgrading to newer models as EV vehicles evolve.
Incentives to subsidize charging upgrades
Many incentives cover the costs of installing charging infrastructure. Some are national, some local. Inflation control laws Offering tax credits for EV chargers Installed Specific census tracts.
State and Local Governments Also, My programs, some of which can cover all or part of the cost of the charger depending on the type of property, the level of the charger, and whether the parking space is shared or private.
Billing tenants for EV charging fees
EV charging facilities have become a must-have for many tenants, and many tenants are urging their landlords to invest in them. Claims vary by stateBut the revenue-generating potential of EV chargers could help attract more environmentally conscious, affluent tenants, renew leases, and Adding a billing fee, Increase in property valuesit’s easy to install.
Additional revenue with per-space pricing
By turning each parking space into a fueling station, apartment complex owners can charge tenants for usage by the kilowatt-hour or as an additional monthly fee. Included of Lease agreementBuilding in a $100 profit per charging space is a small price to pay considering tenants will have to spend time charging their cars elsewhere.
Tenants who own EVs The usual I charge my car for 4-8 hours each day, usually in the early evening or at night. Depending on When landlords set the price, this It will be a great source of income. The flat rate is Easiest Calculate: Kilowatt-hour based payment plans Used All landlords will be able to accumulate profits based on the amount of payments they make.
Sustainability is big draw
Environmentally conscious tenants are typically higher-income earners and are willing to pay extra to know that their apartment complies with ESG goals by reducing the impact of local greenhouse gas emissions. Going green is one way to get top rent while also being environmentally friendly.
Government funding
Business owners and homeowners 30% tax credit Helps to cover Cost Installation of EV charging facilities. There is a limit $100,000 per business charger and $1,000 per residential charger. the current, There are significant government incentives for the transition from fossil fuels to sustainable energy. According to of A national transition away from coal, gas and oil To meet electricity demand. However, these tax incentives probably last Forever As more and more converts are coming into the country.
Installing charging stations while government initiatives are in place is a good idea. According to the provided multifamily refueling ROI calculator: Charge PointIf an investor spends $11,200 to charge 10 resident cars, they can recoup their initial investment in 1.6 years. After payback, the annual net profit will be $6,858, for an annual ROI of well over 50%.
Solar-powered EV stations in the Sunbelt
In sunnier states, Combine EV charger with solar panel and battery or other solar storage systems are a great way to reduce grid load, drawing electricity from the sky to charge tenants’ cars (paid for by tenants) and keeping costs down. Types of Solar panel chargers for EVs are no longer installed on the roofs of homes as in the past, but Masking Carport Panel To Single Space Solar Charging.
lastly
With America’s focus on energy independence and achieving sustainable energy goals to combat climate change, it’s safe to say that EVs are here to stay. this For landowners, it represents an opportunity to earn additional income to offset installation costs, ultimately increasing positive revenue. Cash Flow.
Whether you rent a single-family home, apartment, or mixed-use building, investing in EV charging facilities is a future-proof investment. After all, you are providing your tenants with the convenience of charging and reduced time spent at gas stations and charging facilities.
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BiggerPockets notes: These are opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.
