Los Angeles Tenants Are Willing to Pay More for Buildings with EV Charging Stations

Every now and then, I like to drive around to our various job sites just to make sure everything is running smoothly. It gets me out of the office and away from the phone, and I get to see first-hand how the work is coming along.

On my last trip to LA to check on a multi-unit renovation in Marina Del Rey, I came to a realization while chatting with a tenant from the building. Our conversation got started when I complimented him on his Nissan Leaf after we pulled into the parking lot at the same time.

While he was excited that we were renovating the fitness studio and pool at his building, he mentioned that he felt the property was still lacking a crucial amenity: a charging station for electric vehicles like his own. He wasn’t the only tenant in need of a charge for his car and it got me thinking – with ownership of electric vehicles on the rise, are EV charging stations the next big multifamily amenity?

More and More Tenants Are Buying Electric Vehicles

Electric vehicles are already revolutionizing the auto industry in a way we’ve never seen before. Bloomberg even forecasts that electric vehicles will make up 35% of total global new car sales by the year 2040. That means we can expect to see 41 million of them on the roads. That’s 90 times the equivalent figure for 2015, when sales were suggested to be around 462,000.

So preparation is a must. As a multifamily owner, you have to expect that quite a few of your tenants will have an electric vehicle. That means charging stations will be in high demand.

A recent poll paints a pretty clear picture of why EV charging stations are the next big amenity when it comes to rental property. 84,000 renters were asked if they were planning on buying an EV in the next 5 years, and here’s what we learned:

15% said yes;
58% of those who said yes are willing to pay more in rent to have a charging station on site;
40% of those who said yes are willing to pay at least $10 more per month to have a charging station on site.

Now you know renters want them and they’re willing to pay for them. But there’s even better news: there are rebates available to help you cover the costs.

Available Rebates

The SCE Charge Ready Program offers rebates for EV charging stations that cover 100% of the costs related to infrastructure improvements. The program offers a rebate of up to $1,958 per single-port or $3,916 per dual-port Level 2 charging station

LADWP offers rebates for Level 2 electric vehicle charging stations. You can get up to $4,000 per single-port EV charging station and up to $4,750 per dual-port EV charging station.

If that’s not enough to convince you, consider the fact that hotels offer promising evidence that adding these charging stations offers an excellent ROI.

Hotels with EV Charging Stations See a Boost in Revenue

Since charging stations are still a relatively new thing, it’s important to consider any available data to understand the potential ROI. Hotels are starting to install EV stations on their properties in the hopes of luring more customers, and reports suggest that they’re seeing a significant competitive advantage and a boost in revenue.

Some of the advantages hoteliers are seeing include:

A boost in guest satisfaction;
Increased occupancy rate and/or visitations;
Differentiation from competitors;
Enhancement of their positive brand image;
Media coverage to promote their property.

There is no reason why you can’t have advantages like the ones above as the owner of a multifamily property. This amenity will set you apart from the pack when tenants peruse available units in Los Angeles.

REIG Can Help You Upgrade Your Property

We’ve made a name for ourselves by being one of Southern California’s most trusted names in multifamily renovations. We are dedicated to creating prosperous communities by exceeding the expectations of our clients and their tenants with our renovation services. Our team of professionals is equipped to provide consulting services regarding an array of issues that may arise within a multifamily community, so if you’re looking to upgrade your Los Angeles property with EV charging stations, make sure to give us a call today.