States such as California are implementing initiatives, such as selling only zero-emission vehicles by 2035, to combat the negative effects of driving. This raises concerns for many landlords about whether they should consider installing electronic vehicle (EV) charging ports in their rentals.
As a society, we are becoming more eco-conscious and aware of how our habits affect our environment. Eighty percent of consumers are willing to spend more on eco-friendly products or services. This means rental properties in California can earn more ROI and fill vacancies faster if they offer EV charging ports to tenants.
In this blog post, we will explore considerations for EV charging at your California rental property and whether it could be a good investment.
EV charging ports are electric modules or stations where electric vehicles can charge. There are three different types of EV charging ports.
The first step in considering installing an EV charger at your rental property is deciding which level charger is right for your tenants and property.
Nothing in life is free, even if you’re trying to have a positive impact on the environment. When landlords consider installing EV charging stations, the main concern surrounds the cost of installation and usage and who pays for it.
The rental property owner is usually responsible for paying the upfront costs of installing an EV charger on their property. However, there are a number of government grants available where residential owners can be reimbursed for a portion of the expense.
For example, one grant reimburses residential property owners up to $500 if they install a Level 2 EV charger. Landlords who own commercial property or complexes can get up to $15,000 for purchasing and installing Level 2 or 3 chargers.
When it comes to using the EV charger and the electricity it provides, the tenant is usually responsible for paying this cost. Landlords can ask the electric company to connect the EV charger to the tenant’s unit and charge them with the monthly bill.
Additionally, some landlords may choose to add an additional expense, such as a utility expense, to the lease if their tenants would like to use the charger.
There are so many more benefits than just doing good for the environment for landlords in California when they install an EV charging station on their rental property.
California already has an initiative to sell more electric vehicles, meaning the demand for EV charging stations in rentals will increase. As of December 2023, there were over 1.25 million electric vehicles in California alone. That’s 35% of the nation’s registered vehicles!
The more California residents who switch to electric cars, the higher the demand for rentals with EV charging stations will be. And your property will be there to meet it.
Adding an EV charging station to your rental property could increase its value over time. When you’re ready to sell your rental, this amenity could help you stand out from the competition and raise your asking price.
According to studies, 65% of electric vehicle owners are in their 40s, 70% are college-educated, and earn at least $75,000 per year, making them ideal tenants for your rental!
Offering EV charging can help you increase your rental property income by attracting high-quality tenants who can afford to pay the rent and are likely to renew their lease.
We have also to state the obvious benefit—your property will contribute to making a positive impact on the environment by encouraging tenants to use electric vehicles.
Before moving forward with your EV charger installation, let’s also look at some of the concerns landlords often face.
The most common objection to installing EV chargers is the upfront cost. Fortunately, there are government programs and grants that can lessen the burden. They offer partial reimbursements or tax incentives to help you reduce installation costs.
Not all rental properties have a private parking space that allows landlords to install EV chargers. Consider if your property has the space allowance, and work out the logistics with your neighbors.
New tenants should be educated about how to use the EV charger properly and how to maintain it to avoid damage and costly repairs. It’s also important for landlords to add a clause in the lease stating that the tenant is responsible for all electric costs and usage of the EV charger.
After purchasing a rental property, there is still a ton of work to be done to ensure you’re maximizing your investment and getting the best ROI. That’s where Scout Property Management comes in!
As the area’s leading property management company, we help hundreds of owners make data-driven decisions about how to maximize their ROI and increase property value. We look at market trends, tenant demands, and government initiatives to help you make financially savvy decisions.
Plus, we’ll take care of all the day-to-day tasks like rent collection, maintenance coordination, property inspections, and bookkeeping so both you and your tenants are happy and relaxed.
Curious to see how much you can rent your California property for? Request our free rental analysis today!
If you enjoyed this blog, make sure to read Cost-Effective Ways to Upgrade Your Murrieta Rental Property next!
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