The Truth About Multifamily EV Charging
Property investors have found that EV charging stations are excellent additions to any home. Not only do charging stations attract progressive tenants, but they can also increase the property's value and its eco-friendliness. Multifamily property owners also see a tremendous opportunity in providing this kind of amenity as more people join the electrification movement and steer away from fossil fuels.
It is easy for property managers and owners to get the wrong idea about multifamily EV charging stations due to numerous myths and misunderstandings floating around the world. Taking these fallacies as fact robs property owners of the opportunities allotted to EV charging stations for multifamily properties.
Read on to get the truth behind the five biggest myths revolving around multifamily electric car charging stations.
Myth 1: Electric Vehicle Charging Stations Cost Too Much
When people think about hiring a Gilroy electrician to install an EV charging station in their Santa Clara County property, they often imagine emptying their bank accounts to make the upgrade. The price of these electric charging stations has come down over the years. The current nationwide average for a Level 2 EV charger is $7,200, not including the cost of permits and hiring a residential electrician.
While $7,200 seems like a ton of money, it is less than other major home upgrades or maintenance costs. For example, a new HVAC system can easily cost $12,500 per unit, a bathroom upgrade can ring up at $10,788, and a new roof in California averages close to $20,000.
Property owners can also look to various government incentives that help cover the cost of eco-friendly initiatives. The Inflation Reduction Act (IRA) allows for a credit of up to 30% of the equipment and installation costs associated with installing electric vehicle charging stations, up to $1,000 for residential properties, and $30,000 for commercial properties.
Myth 2: Multifamily EV Charging Stations Cannot Generate Revenue
The idea of tracking multifamily EV charger use might seem complicated. In reality, generating income from a charging station is easier than expected. Some property owners bill tenants hourly to charge their EVs, while others charge a flat monthly fee.
Modern multifamily EV charging stations can easily use tracking technology that multifamily properties already have, like amenity access cards, keypads, and more. With the right system in place, you can track who uses the chargers, how often, and how much electricity is required. This tracking can easily lead to paying for the EV chargers’ operation and potentially turning a small profit.
Property owners can also expect slightly higher rental rates for properties that offer on-site electric vehicle charging. Even an extra $100 a month will make a difference over time.
Myth 3: Tenants Will Not Use Them
While electric cars are not the top-selling vehicle on the market today, they are growing in popularity. The end of 2022 shows record-breaking electric vehicle sales, and many auto manufacturers are investing heavily in designing and building new EVs for the coming years.
Under the IRA, shoppers can even receive a $7,500 federal tax rebate for purchasing a new EV and $4,000 for a used EV. From newer and more affordable EV options to a host of incentives, more drivers are ready to hit the road in fully electric or plug-in hybrid vehicles than ever.
A recent survey showed that 78% of EV owners do not have a charging station at home. Just imagine what tenant applications you can get if you provide this highly-desired amenity at your property.
Myth 4: Multifamily EV Charging Stations Require Too Much Maintenance
Many multifamily properties do not have the staffing to handle additional maintenance tasks around the property. Owners and managers fear that an EV charger would require too much time to maintain and disrupt the regular maintenance process.
While maintaining a multifamily EV charging station is crucial to earning a return on your investment, it will not disrupt the regular flow around your property. Many EV installers offer service contracts to help inspect and maintain charging stations.
The average cost of maintenance of a single charging station is only $400 per year, which is less than most property owners pay for landscaping.
Myth 5: EV Chargers Are Hard to Install
This myth is partially true. Installing a multifamily EV charging station is not a DIY project that any property manager or maintenance team should handle. You want to hire a certified/licensed Santa Clara County electrician to handle the job for the best results.
Many homes and properties need electrical upgrades to handle the demand for an EV charger. Even a Level 1 charger that plugs into a normal 110v electrical outlet requires a dedicated line to charge your EV safely. Your property may need new lines run, an upgrade to the service panel, or other equipment installed to ensure everything works.
A licensed electrician in Gilroy, CA, can also pull all required permits to install your charger or make electrical system upgrades. You are also protected from liability, as your electrician in Santa Clara County will have insurance that protects you against damages.
A multifamily EV charging station may be too difficult to install yourself, but it is something the right electrical contractors can do with ease.
Let Watson’s Charging Stations & Electric Be Your Santa Clara Valley Electrician
Multifamily EV charging stations are a great way to increase the value of your property, attract new and reliable tenants, and generate additional income. The team at Watson’s Charging Stations & Electric can help you evaluate your options and put together a system that will work for you.
If you are ready to work with a professional and friendly team of licensed electricians in the Gilroy, CA, area, we are ready to help. Contact us today to schedule a complimentary consultation. Whether you are ready to add EV charging to your multifamily property or just need some general electrical work done, the team at Watson’s is here to serve you. Give us a call today.