Are Electric Vehicle Charging Stations the New Rental Amenity?

Do EV chargers draw renters? Are they worth the investment?

Could not having an electric vehicle (EV) charger available to renters affect your property’s desirability—and profitability?

Before you dismiss the idea, consider the growing popularity of electric vehicles. More than 183,000 electric vehicles are registered in Texas, according to data analyzed by the Dallas-Fort Worth Clean Cities Coalition. In addition, there are over 2,000 public charging stations in the state, according to TxDOT. As EV ownership grows, the number of public charging locations will increase as well. But drivers also want the convenience of charging their vehicles at their homes.

Are EV charging stations only worthwhile investments for commercial and large rental properties? Anup Parikh, CEO of Pangea Charging, states that there is a misconception that small properties are excluded from seizing this market opportunity or that landlords of smaller rental units cannot appeal to EV owners. He and other experts in EV charging see opportunities for owners of rental properties big and small, like duplexes, fourplexes, and other smaller rental units.

Trends and tenant needs have changed

Parikh says that despite Texas being truck-heavy and dependent on oil and gas, electric vehicles should not be ignored by property owners and managers. Texas is the third-highest state for the number of registered EVs behind California and Florida. And since more people are working remotely, an increased focus on charging in duplexes and other multifamily homes will cater to people who are at home longer. “Before the pandemic, the focus was workplace chargers because that is where the car sat the longest, but remote work has changed that trend.”

Whether for a garage in a single-family home or duplex, or in assigned or shared parking at larger properties, the convenience of waking up to a charged battery is a desirable perk for many renters. “This is an amenity that caters to young professionals who want to get into homes, and they want to be green,” says Huyen Do, Managing Partner at Drox Investment Group.

“The demand for chargers is there,” says Parikh. “It’s not that people who own electric vehicles won’t consider small properties; that’s not the connection. The connection is if you’d offer it, there are renters that can utilize it.”

It’s not all about monetizing

While commercial properties and large rental complexes have more space and more capital to invest in EV charging stations—potentially even creating a revenue stream—monetizing isn’t the only reason to install EV chargers. “EV chargers are a great marketing tool to attract new renters,” Do says. A property manager can advertise the ability to charge an EV at a property, even if it’s a level 1 charger (a regular outlet). More rental listing sites are beginning to implement an EV charging filter where renters can prioritize their search to those that offer EV chargers, adds Parikh. Renters viewing listings may ignore—or never even see—a listing if it doesn’t mention the ability to charge their EV.

According to Kimberly Gray, a commercial agent with Keller Williams, Dallas Metro North and Legacy Commercial Group, “Having chargers installed is a small, long-term investment that increases property value and can not only be a deciding factor when capturing new tenants but also retaining existing residents at the time of lease renewal.”

Separating fact from fiction

A common myth is that charging an EV at home takes forever, states Gray. Parikh agrees: “People do not drive 24 hours a day. A level 2 charger will likely charge your vehicle overnight while you sleep and be ready to go in the morning.” When he hears “slow to charge,” he points out that charging needs depend on how many miles a vehicle owner drives and how long the vehicle is at home.

According to the EPA, a level 1 charger will provide about 5 miles of range per hour of charging, while a level 2 charger will produce about 25 miles per hour of charging. Depending on how many miles a person drives on a typical day and how long the car sits at home, even a level 1 charger may cover most circumstances.

Another myth is that EV chargers are too expensive for smaller properties. Installing EV charging stations is not a one-size-fits-all solution—wiring, space, construction, or other infrastructure needs are all factors that come into play regarding cost. For example, Parikh estimates that for a property to install level 2 charging to two adjacent parking spaces, the property owner should budget between $10,000-$20,000. However, a wall-mounted station in a garage falls on the lower end. “It doesn’t need to be as big an investment as you may think. Really what people are looking for is some amount of charging. Some is better than none,” he says. “There are inexpensive, quality options for home chargers and smaller multi-unit housing,” Gray adds.

Other things to consider

Many automakers will be fully electric by 2030, and most others plan to follow by 2035 or 2040, says Gray. While this is good news for any property owners considering installing EV charging now, it doesn’t mean there aren’t risks involved. When considering if chargers are right for your property, Gray explains that it is important to be educated on what the equipment has the capabilities to do and to know the potential ROI it can provide. “Chances are if you are in property management, you need level 2 chargers, but there are many to choose from and things to determine, such as power load and availability.”

Do suggests speaking with an electrician before making a decision. “Do your due diligence to find out if the current electrical make-up of the property can handle the stations you want to put in. Find out if there is an upgrade need and the cost.”

You should also have a strategy. While demand for EV charging is there and expected to grow, that doesn’t mean it will grow quickly in all areas. “Don’t ignore this,” Do cautions. “Know your goals, EV adoption rate in your location, and the cost and benefits.” Do is adding stations to her 164-unit class B+ property in stages. The goal is to increase foot traffic and bring tenants to the apartment complex. “Our strategy is to install 10, but doing it in phases allows us to see how the foot traffic comes in.”

How do you get started?

“Contact an EV specialist,” Gray says. “There are a lot of options, and it can be overwhelming to choose the right product.” There also may be incentives available to offset the purchase and installation costs, such as tax credits and the ability to negotiate lower energy costs with local utility companies, especially when aggregating several small properties.