Are EV Chargers Profitable for Multifamily Businesses?

Despite there being more than 2.2 million electric vehicles on the road in the United States, property landlords estimate that less than 5% of their apartments and offices offer EV chargers to their residents.

It sounds like an opportunity to stand out in the market, attract scores of new residents, and become a leader in your city.

But is it???

EV stations could be a win for your multifamily business but they could also fall flat, leaving you holding a hefty price tag for the bragging rights of having cutting-edge chargers.

Here’s how to know if installing EV chargers is profitable for your multifamily business and when it’s time to run away.

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Consider Your City and Its EV Impact

Where your communities are located will directly dictate whether or not EV chargers are profitable for your multifamily business.

It’s easy to overestimate the reach and demand for EV charging stations in your area.

Ask yourself:

1) Is your city an innovator and supporter of EV charging stations and alternative ways to source energy, such as solar?

2) Does your state or city have an energy commission actively partnering with organizations to bring EV chargers to local businesses, communities, and public spaces?

3) Do renters in your city actually benefit from EV charging stations?

A city like New York may offer some EV charging stations, but space is a rare commodity and the majority of renters don’t own their own vehicles in NYC.

As of August 2023, 45% of households in New York City own a car and that figure is only 22% in Manhattan.

However, car culture is prevalent in cities like Atlanta or Dallas.

Public transportation in these cities isn’t reliable unless residents can connect from their neighborhood to work and the places they love to hang out.

It’s much more likely you’ll find a need for charging stations in areas where car commuting is the norm and gas prices are always a common complaint.

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What Does Your Existing Community Want?

Before you go too far down the rabbit hole about installing EV charging stations, find out what your existing community wants.

Yes, EV chargers can absolutely be a lead gen tool, but you should also consider what’s going on with your current residents.

Send your current residents an email survey and ask if they would use a free EV charging station in your community and how often.

If you hear crickets, chances are high that no one will care whether or not you spend the time and money to install a station.

If one or two people enthusiastically respond, it’s proof you have some residents who want more convenient amenities catered to their needs.

Truth 💣: But it’s not enough to change your entire multifamily business to accommodate a few people who would love to eventually buy a Tesla if you installed a charger, only to realize they’re not quite there on their electric car journey.

Tip💡: Ask your leasing agents if anyone has said they wanted EV chargers, whether they were previous residents or leads that didn’t convert.

Understand the Common Issues with EV Charging Stations

Before making a commitment to installing EV charging stations in your community, it’s crucial to understand the common issues and whether or not you can (and should) overcome them.

👉 If parking spots are already limited, how will you designate EV charging stations vs. traditional spots?

👉 Does your building have the power supply to support EV chargers for dozens of parking spaces without risking a power disruption in your community?

👉 Can you wait to recoup the investment on the costs of EV charging stations, which could be around $6,000 per port, depending on the area? (Source)

👉 Will you charge residents for the use of EV chargers or absorb the energy costs as part of their rent?

👉 Is your area zoned for charging stations?

👉 How will you protect yourself from liabilities, including battery failures and fire loads?

👉 How will you handle EV Chargers that are out-of-order?

Installing EV charging stations is absolutely not a simple process.

They  may be worth it, depending on your location and circumstances, but there are serious issues to consider and overcome first.

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What Are Your Competitors Doing?

There’s something to be said about being first to market and being the revolutionary community offering EV charging stations.

But if none of your competitors offer EV stations, it may have more to do with their own conclusions that EV chargers aren’t worth it.

Look at your direct competitors targeting similar demographics, as well as those offering expanded, upscale amenities to a totally different market.

Pair what you see going on with your competitors with your research from the steps above.

It should give you a clear picture of what the demand really is for EV charging stations in your community.

Should You Move Forward with an EV Charger?

Once you gather your research, ask yourself if adding EVs helps you lease more with less.

If the answer is:

🤔 “No, and based on my research, it doesn’t look like it’s in demand.”

Drop the idea and move on.

🤔 “No, because it would cost a boatload of cash to install and I’m not sure about the next steps, but EV stations are in demand in my area.”

Consider a long-term plan for how you can make them part of your community. For example, you may be able to install a small number of chargers or partner with a retailer in your building to offer them as a joint venture.

🤔 “Yes, they seem like a great fit, but I need more info.”

If you’ve decided everything is going in your favor to install EV chargers in your community, there are a few things that can make your life easier:

1. Look into grants that can help offset the costs of your installation.
2. Find similar-sized businesses in your area with EV charging stations, like a smaller hotel or non-competing multifamily community, and ask if you can get some feedback and advice to get started.
3. Align your marketing materials with your upcoming EV charging stations to make them part of your lead generation and resident retention strategy.

And finally, if you’re still not sure what to do, WAIT.

Installing EV charging stations is a big commitment and expense. If you're undecided, you need more time to make a decision and ensure everything aligns and makes sense for your multifamily business in the long term.

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