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Should You Install EV Chargers? Making Your Property More Attractive to Electric Vehicle Owners

As of March 7, 2023, about 158,000 electric vehicles were on the streets of New York City, with the number expected to increase over the next decade. The trend is the same across the country, with more than 320,000 EVs sold in the first quarter of 2023, 60% over the same period in 2022.

With the popularity of EVs, landlords should consider if it’s in their best interest to install EV charger stations. Discover the benefits, information, and costs before choosing if installation of this electrical upgrade is right for your property.

Why You Should Install EV Charger Stations

Future-Proof Your Property

EV manufacturers are constantly working to improve the performance and affordability of their vehicles. The top brands of 2023 offer models with ranges up to 400 miles or more; by 2025, industry leaders expect ranges to reach 600 miles.

The popularity of EVs is only increasing, especially as manufacturers focus on reducing the expense. Landlords of apartment complexes or multi-family properties should prepare for the transition to electric transportation.

While NYC executes a comprehensive public charging station network, access limitations may exist. As a property owner, providing charging access for tenants and possibly the public is an amenity that can also increase profits.

Increase Property Value and Attractiveness

Install EV charger stations may seem like a premature expense; after all, you may only have one or two tenants with such needs. Still, according to sales figures, consumers are investing in the electric revolution of the automotive industry. Offering charging stations is a way to meet the current niche demand before it becomes the norm.

The purpose of any addition to a building or its property is to increase value and profitability. Charging stations are an excellent way to attract new tenants while improving property value. Also, owners of the charging stations can typically expect a profit margin between 25% and 50%.

Prove Sustainability

A significant issue in NYC among residents and governing bodies is sustainability. The city is moving toward a zero-emissions future and improved environmental responsibility. Property owners embracing the changes ensure they remain ahead of regulatory demands while portraying themselves as the future of rentals.

Tenants want sustainable residences. They want landlords to demonstrate a push toward environmental initiatives, which EVs are part of. If you install EV charger stations, it shows tenants a commitment to a better future and offers a unique amenity and convenience.

What You Should Know About EV Chargers

Level 1 Charging

There are different levels of charging to consider with EVs. Level 1 charging is the most affordable and basic, but it is inconvenient and likely incurs several liability risks for building owners.

Level 1 does not require any unique outlets or stations. Tenants plug an appropriate extension cord into a standard outlet and connect it to the proper port on their vehicle. Not only does this form of charging take a long time, but it also directly affects the person responsible for the electric bill. Also, depending on the parking situation, it is impractical and unsafe to have tenants stretching extension cords from their units.

If you do not install EV charger stations, include a provision in the lease agreement stating who is responsible for EV charging. The condition can save you from issues in the future.

Level 2 Charging

Level 2 charging requires a special 240v outlet. The option benefits EV owners more because it provides them with more mileage per charge and faster charging.

Installing individual outlets is challenging in open parking lots, but it is more feasible if tenants can access private garages or indoor parking. The installation is best for single-family homes but possible for multi-family units; however, the more units, the more complex and pricy the job.

Much of the difficulty comes from charging demand and access. Also, the responsibility of the electric bill comes into play again. Neither level 1 nor 2 charging is tremendously beneficial for the property owner — other than as a potential advantage for potential tenants.

Level 3 Charging

If your property does not offer private parking and wishes to create an amenity with a financial advantage, install EV charger stations with level 3 capabilities. Level 3 stations typically provide 800v for rapid charging, and open parking lot installation is possible.

Property owners may not appreciate the extra expense over the other two options, but level 3 stations provide unique advantages. First, you can advertise the stations as amenities. Second, you can earn money from the stations. Depending on your advertising and leasing language, you may choose to not charge tenants an additional fee but set a fee for non-tenant use.

What To Expect From Installation Costs

Installation Expense

A level 3 EV charging station is the most advantageous for owners and tenants, but it comes at a steep price, around $40,000 for a single port. Depending on the equipment and labor, the total cost of a level 3 station can run $80,000 or more.

Level 1 and 2 charging options are more affordable, with installations costing between $1,000 and $2,000. Unfortunately, more straightforward charging options are less practical for larger residential complexes.

State and Federal Rebates

The cost to install EV charger stations may seem prohibitive, but consider state and federal rebate programs before you decide against the option. In August 2023, multi-unit property owners could still qualify for $14,000 in tax credits and rebates on two-port installations. Also, NYSERDA is offering a $2,000 rebate for each charging port. Finally, New York state provides an income tax credit that can offset a project by 50% or up to $5,000 per port.

Charging station owners may also be eligible for federal tax credits. The Alternative Fuel Infrastructure Tax Credit allows equipment owners a credit of 30% of the project cost, up to $30,000 for projects installed before December 31, 2022, and up to $100,000 for those built from January 1, 2023, onward.

How To Install EV Charger Stations

Consult Bolt Electric for Installation Guidance

EVs are becoming more popular, and it is time to consider incorporating charging options for tenants. If you want to learn more about installing EV charger stations on your properties, contact Bolt Electric at 212-734-5000.