EV charging stations have quickly become one of the most in-demand apartment amenities. The tenant pressure to provide EV charging stations alone is reason for landlords to make the investment, but EV charging stations have benefits well beyond tenant satisfaction.
Randy Etman, senior director of North American Sales at Blink Charging, says that owners often underestimate the revenue-generating potential of EV charging stations. Apartment owners with EV chargers can also access government incentives and more easily achieve sustainability targets.
Here are three ways that EV chargers are proving to be just as valuable to apartment owners as apartment tenants.
An Additional Source of Revenue
EV charging stations turn a single parking space into a source of income. In essence, they are a gas station on a parking space. According to Etman, multifamily owners have the flexibility to charge tenants for use per kilowatt hour or as an additional monthly fee included in the lease agreement.
Tenants with electric vehicles are going to charge every day for four to eight hours. If the property owner has several charging stations that are used continuously, that amounts to a significant revenue stream.
“Depending on the pricing policy that the owner implements, they can really gain substantial revenue by deploying EV charging stations at the property,” says Etman.
Meeting Sustainability Targets
Multifamily owners are increasingly adopting Environmental, Social & Governance policies to ensure real estate is benefitting the community. EV chargers are one opportunity to meet ESG targets by reducing the impact of greenhouse gas emissions in the community.
In addition, high-quality and high-earning tenants are more likely to live in an apartment property that is prioritizing sustainability, and EV chargers are a great way to demonstrate that commitment.
“EV charging stations are a big value-add for owners by providing a sustainable amenity to the residents,” explains Etman. “Sustainable and green initiatives certainly help achieve a premium dollar for their leases.”
Accessing Government Funding
Because EV charging stations support sustainability and the reduction of greenhouse gas emissions, governments at every level are fervently encouraging property owners to install them. Property owners that install EV chargers are eligible for a 30% tax credit, and many state governments are offering similar incentives and grants.
For example, the State of California has $30 million available in incentives for shovel-ready EV charging projects. Local utility companies often have their own rebate programs as well.
Etman urges property owners to take advantage of these funds while they are available. “These incentives will go away,” he notes. “It’s imperative that when those funds are available, property owners take advantage of them.”
It’s important to work with a company that understands the available programs and benefits for developers, and Etman notes Blink has internalized broadening an owner or developer’s awareness of charging stations as part of their mission..
“At Blink, we advise our clients on the programs and incentives that they have the ability to take advantage to be able to offset some of the costs,”says Etman. “The biggest goal we have is to make sure we educate the clients so they can make the best possible decision, for their organization or for their property.”