Residential landlords are in an “amenity war,” using everything from refrigerated lockers to concierge services and top-line gym equipment to attract top-tier tenants.
The newest in-demand amenity for tenants is quickly becoming the convenience of a home charging station for their zero-emission car. Is it time for multifamily property owners to hop on board? Here are three reasons commercial properties should consider adding EV amenities.
1. Future-proof your properties
As electric vehicles become increasingly commonplace in environmentally conscious Southern California, the demand for at-home chargers continues to grow. EV-driving residents have many choices and will choose the rental community that offers the services they need and want. In some markets, multifamily property owners may already be losing tenants and rental income by not installing chargers.
In a recent Pew Research Center survey, 39 percent of U.S. adults said they are likely to buy an electric vehicle as their next car purchase. This consumer shift mixed with California governor Gavin Newsom’s executive order banning the sale of gas vehicles as of 2035 is sure to keep the demand for EV vehicles growing. By installing EV charging stations now, landlords can prepare their property for the future while attracting and retaining more tenants now.
2. Take advantage of rebates, grants, and tax credits
The State of California is striving to enable the deployment of 250,000 EV chargers by 2025. To accomplish this goal, the state offers a wide range of financial support, but these incentives will not last indefinitely.
For example, the Southern California Incentive Project offers rebates of up to $80,000 for a DC fast charger purchase and installation with a total of $29 million in available funds.
Southern California Edison also offers Charge Ready programs for multifamily property owners, including a turnkey installation program that uses SCE funds to not only design and install EV charging stations, but also operate and maintain the stations after installation for qualifying participants. Edison also performs all necessary meter infrastructure work at no cost.
As California gets closer to reaching its EV charging station goal, incentives like these are likely to decrease. The landlord who provides their tenants with shared-use residential charging stations can stay ahead of their competition and take advantage of these generous incentives while they last.
3. Increase property value and revenue
In the short term, property owners can increase revenue by billing tenants for EV charging station use, either by assigning chargers to individual drivers or by using a payment system for shared use. In the long term, commercial property investors will pay more for properties that have done the leg work to future-proof their properties. This will be especially true when incentives are no longer available to offset the cost of installing EV charging stations.
The bottom line
More and more people want to live in green communities and are willing to pay higher rents for the privilege. By installing shared use charging stations on their properties, real estate investors are making their residences attractive to future tenants while complying with emerging laws and building standards. Early adopters will have a competitive advantage over landlords who do not recognize the importance of providing this vital amenity.