From Burden to Benefit: A Property Manager’s Guide to EV Charging
Home charging for electric vehicles (EVs) has proven to be a cost-effective and widely embraced solution, accounting for more than 80% of EV charging in residential areas. However, the advantages of EV ownership do not uniformly extend to drivers who live in multi-family developments, such as apartments and condominiums. Despite the increasing interest in EVs, on-site charging options in these developments remain the exception instead of the rule, with nearly half of the EV owners living in them lacking access to home chargers.
With approximately 44 million tenants in the U.S., multi-family developments are a deep pool of untapped potential for the EV industry. Given the proliferation of electric cars and passenger vehicles on dealer lots, convenient EV charging options are the key to unlocking this massive market. Property management organizations must adapt mindsets and properties to support current and future EV-owner tenants and embrace electricity-powered futures. EV charging is a high-value amenity that attracts and retains tenants, and it is a strategic business decision filled with revenue-generating potential.
Multi-Family Developments: EV Charging Outliers
Building out a comprehensive, reliable, and accessible EV charging ecosystem has been pivotal to the success of the e-mobility movement in the U.S. Hotels, movie theaters, grocery stores, restaurants, and even national parks have deployed charging stations to serve the growing number of all-electric patrons. Despite the evident demand for EVs and, in turn, chargers, multi-family developments remain in the laggard category, with property managers often hesitant to invest in charging infrastructure. Their motivations, however, tend to be pragmatic, reasonable, and, in many cases, surmountable.
For starters, most multi-family properties do not have the excess electrical capacity to accommodate EV charging stations. More than half of the apartment stock available today was built before 1980, limiting the capacity required to support today’s electrification needs. Complexes may require extensive and costly electrical upgrades to adequately meet these increased demands. When added to the expense of EV charging station equipment, deploying this modern amenity becomes too expensive for landlords to justify. Additionally, property owners often worry about the tenant demand for EV charging and the ownership issues that can come with installing charging stations.
In 2022, homeowners were three times more likely than renters to own an EV, amplifying landlords' concerns about absorbing an even larger share of the costs of new EV charging stations if not enough tenants utilize this service.
Significant barriers have deterred a vast majority of multi-family property owners from deploying on-site EV charging stations, leaving less than 5 percent of properties equipped with this infrastructure. However, it's important to note that some companies can help with the costs through incentives and rebates and provide 3rd party ownership to remove capex and opex costs.
From Amenity to Regulatory Requirement
Given the general resistance to deploying charging-as-amenity due to the complications that can come with the installation process, EV-owning tenants are left frustrated, and potential EV owners are back away from going electric in the first place.
As of 2022, almost 40 percent of car buyers delayed their EV purchases until they had their own garage due to charging concerns at apartments and condos. However, with a dynamic EV charging landscape, U.S. states have begun introducing regulatory initiatives, such as Right to Charge laws, that mandate EV charging infrastructure for new multi-family developments. While they may be construed as burdensome regulatory requirements, developers can leverage EV charging mandates into strategic business opportunities.
Developers can set themselves apart by taking a service-oriented approach to EV charging and leveraging the many developments in charging technology to transform their projects into appealing, eco-friendly, and pro-tenant environments. By taking the lead in helping owner groups to navigate the evolving technology as well as the regulatory landscape surrounding EV charging in new developments, compliance becomes easier and developers get a competitive edge in the market.
Mastering the Mechanics of Hardware and Software Integration
Successful integration of EV charging infrastructure demands a nuanced understanding of how hardware and software come together to establish the desired charging services and how those services are managed. From installation to maintenance and troubleshooting, developers face what looks like a complex landscape. Customer education is essential in multi-family properties, where concerns about ownership, aging housing stock, and the involvement of building owners or management companies in charger installation and maintenance prevail.
As with most projects, precise planning is also a prerequisite for success with EV charging. Developers must choose the right charging station hardware, be strategic about the number of stations and their placement, and consider the resulting power requirements to tailor configurations to the project's specific needs. Taken together, this kind of planning will ensure the right level of functionality, efficiency, reliability, and manageability.
On the software side, tenant access, energy pricing, app-based user and charge time management, as well as troubleshooting, support, and network management, must all be considered. Bridging the knowledge gaps between developers and site owners is important, particularly regarding how the stations are managed once switched on. With great software and the right service providers, multi-family charging can become a low-risk and low-effort way to delight tenants while creating incremental revenue streams.
Turning Burden into Benefit
Residential EV charging at multi-family developments is often perceived as a financial burden, but technological advancements are reshaping this view. Comprehensive plans featuring premium warranties and efficient station management can transform this liability into a valuable asset. These plans offer hassle-free stations, reliable warranties, and streamlined network management to address maintenance and operational costs concerns. By turning EV charging into a sought-after amenity, developers can boost tenant satisfaction, attract new residents, and positively impact their financial returns.
Implementing EV charging infrastructure no longer requires developers to be experts in every aspect of the underlying technology. Instead of navigating the complexities independently, developers can partner with experienced companies that offer solutions tailored to multi-family environments. This collaboration provides the freedom to select the right charging equipment, features, and installation options based on specific business needs identified by an apartment complex management group. Partnering with experts ensures a smoother transition to sustainable transportation solutions and a valuable amenity.
The transformation from viewing EV charging as a financial burden to recognizing it as an asset is within reach for developers. Developers can differentiate themselves in the market by adopting a forward-thinking, innovative, and eco-conscious approach. Beyond compliance, they can positively impact both their business and the environment. The future of multi-family developments is electric, and the developers that embrace this change stand to reap the benefits.