How EV Charging in Class B and C Properties Boosts Tenant Satisfaction and Property Values
For years, most investments in multifamily EV charging have focused on Class A properties, leaving Class B and C buildings behind. But with EV prices falling and adoption rising, this is changing fast. More tenants than ever in Class B and C properties want onsite EV charging—and soon, they’ll expect it.
The bad news: There’s a common misconception that these properties are too old to host EV charging or that installing EV charging would be too expensive.
The good news: Installing EV charging at Class B and C properties is more affordable and accessible than you think. With smart planning and the right solutions, you can boost tenant satisfaction, enhance property value, and even generate NOI, all without a massive cost to your business.
Ready to learn how? Let’s explore why you should bring EV charging to your property—and how to make it a resounding success.
The Case for EV Charging in Class B and C Properties
Boost retention by meeting tenant demand for EV charging
The profile of the EV driver is rapidly changing. Newer, more affordable models of EV are hitting showroom floors, and the used EV market has seen a tremendous influx of vehicles available at very reasonable prices.
As a result, many who previously felt locked out of the EV space are jumping in to buy their first electric cars. With at-home charging being much preferred (and unquestionably more convenient and less expensive for drivers), owners and operators of Class B and C properties will soon receive an influx of requests for chargers to be installed in their parking areas.
When this occurs, two things are almost certain to happen:
- Residents of Class B and C properties will begin to seek out (or choose to remain residents of) properties that do offer EV charging.
- Tenant satisfaction will see a nice increase among those who live in properties that offer EV charging onsite.
Between vacancy costs, the costs associated with promoting and filling rental units, and the costs that arise thanks to turnover, it makes good sense to seek any advantage you can in keeping your properties filled with good tenants. In the years ahead, EV charging will be a great option for accomplishing just that.
Enhance property values with the addition of great new infrastructure
Here’s a little secret: You’ll benefit just as much as your tenants will from having EV charging installed at your properties, just in a different way.
Having EV charging present at a property is going to increase property values. In part, this is because of the immediate value of the infrastructure itself, but there’s another layer, as well.
Right now, there are many incentive and rebate programs out there that drive down the cost of purchasing and installing EV chargers. This helps with making the cost of EV charging more reasonable, but most of these programs are set to be phased out over the next few years.
These programs are going to go away at the same time that we see huge increases in both the number of EV drivers and overall demand for at-home charging. The result? Properties that do have EV charging are going to see a nice boost to property value by virtue of already having installed charging stations when the cost was lower.
Generate new revenue and positive NOI with EV charging (and fit it easily into your parking area)
There are a lot of amenities that a property could consider adding, but many—like an exercise center, for example—require diverting property space to the amenity. For many Class B and C properties, there simply isn’t room to spare.
EV charging stations, though, will fit into whatever parking area you already have. No need to tear down walls, convert units into communal spaces, or anything else of the sort. Most of the installation work and modifications go on behind the scenes.
Additionally, where most amenities are just additions that can help attract residents and improve their quality of life, EV charging performs these functions and also allows you to generate a nice new revenue stream.
Revenue from charging fees can be put towards maintenance and operating costs for your charging stations or overall business, can help with future expansion of your charging offering, or can even become a new contributor to overall profits and NOI. There aren’t many other amenities that can claim anything similar.
EV chargers are a tangible example of a commitment to sustainability
More residents than ever want to see the buildings where they live make strides towards greater sustainability. While there are plenty of ways to pursue this—electrifying heating and cooling, improving insulation, replacing windows, etc—many of them aren’t especially obvious or visible. With EV charging, though, you get a physical asset that your residents can walk up and touch and which can produce reports into the precise amount of environmental benefit they offer.
This matters. Being able to see reminders of your investment in sustainability every day will reinforce your commitment in the eyes of residents. And, provided you adopt a solution that lets you see data like the amount of emissions averted by virtue of your chargers (compared with a vehicle powering itself with gasoline), you’ll also be able to tout a specific and measurable contribution on your website, during tours, and in other promotional efforts.
EV charging Challenges for Class B and C properties and how to overcome them
Though there are plenty of benefits to installing EV charging in Class B and C properties, there are legitimate challenges or concerns to contend with. Fortunately, solutions exist and are very accessible.
Here are a few of the most common situations and how to handle them.
Infrastructure limitations: No capacity to add chargers or nowhere to put them
Many Class B and C properties are older. They tend to have older electrical systems that, on their face, can’t support the addition of EV charging stations without highly expensive infrastructure upgrades.
On top of that, parking layouts in these properties are often shared or limited in space. This can make it difficult to install EV chargers in a way that promotes equitable use by residents—or to install them at all.
The solutions:
On the electrical front, the main value is found in adopting a solution with electrical load management. What this does is allow individual circuits or whole electrical panels to allocate electricity across a series of charging stations, rather than the default ratio of one charging station per circuit. This can allow a property to install a large number of stations with no major electrical upgrades required, thereby dramatically reducing the cost of the project.
On an ongoing basis, this same technology can also help keep energy consumption by chargers down during times when the building’s overall load is too high, such as when heating or cooling is drawing a lot of power. You won’t face excess demand charges, and EVs will still get the full charge they need when they plug in.
When it comes to managing shared or limited space, there’s no one-size-fits-all solution. Your best bet will be to work with your EV charging solution provider and your installation partner (be sure to pick one with proven experience with EV charging specifically) to assess the layout of your parking facility and determine the best placement for the charging stations in terms of accessibility and installation cost.
From there, you’ll be better able to judge how best to adjust your parking setup to accommodate the new chargers.
Budget Constraints: Charging stations and installation may seem too expensive
Compared to Class A properties, Class B and C buildings often operate with tighter budgets. And with EV charging installations often seeming to come with a hefty price tag, it’s understandable that a property may choose not to install on that basis alone.
The solutions:
The first thing to understand about the cost of installing EV charging stations: it’s easy to slash your bill pretty significantly.
At the federal, state, city, and utility levels, there are many programs in place across North America to either grant funds for the purchase and installation of EV chargers or to offer tax rebates to reimburse property owners after a project is completed. Securing funding through as many applicable programs as possible is a must. It can drive your project costs down by tens or even hundreds of thousands of dollars.
Class B and C properties are likely eligible for more funds than average through these programs and are very likely to be approved.
Reach out to SWTCH for support in applying to the best programs for your property.
Beyond funding programs, you might also consider alternative contracts to make purchasing your chargers more affordable. EV charging-as-a-service takes the full cost of purchasing, installing, and operating EV chargers and breaks it up into monthly payments over the course of a period of years.
The best part? This type of contract still allows you to offset costs using incentive and rebate programs. You’ll slash costs and turn what’s left into a manageable operating expense, all while securing EV charging for your property without delay.
Lack of demand: Nobody drives an EV, or nobody is asking about charging
Though there are more EVs on the road than ever, many property owners report the same thing: nobody at my building drives an EV.
On the driver’s side, though, there are plenty of drivers who say they would drive an EV, but because there’s no charging available where they live, they don’t feel it’s an option.
Not every property is going to see demand for EV charging right away, so how can you know whether it’s the right time to go ahead with the installation?
The solutions:
The first thing to do is to run a survey of your residents. See how many currently have an EV and how many are intending to purchase one in the near future. Based on the results, you should be able to get a sense of how many people will make use of the charging stations you install (it’s pretty much a guarantee that they will all prefer to charge at home vs. a public charging station).
If you want help figuring out the business case based on this survey, reach out to our team! We’ll be happy to help you determine the right number of chargers to install, what kind of fees will be required to offset their cost, and how long it might take you to pay back the cost of your charging stations.
It’s also important to consider the larger picture. There are more and more EVs on the road each year, and we’re not that far away from a time when EVs will be the only kind of car most people can buy.
Incentive programs are great and offer a lot of money, but they’re starting to disappear. What you don’t want is to find yourself needing EV charging to compete with other properties but facing a far higher price tag because of a lack of incentive programs.
If you’re able to install chargers today, even if your property doesn’t quite have the demand for it, it’s likely still a solid move. You’ll be in a stronger position once you do need charging infrastructure.
Great EV charging in action: How The Lofts at Beacon future-proofed their building with SWTCH
In 2022, The Lofts at Beacon began receiving questions from residents about whether the property would install EV charging stations. One year later, the property rolled out its first chargers, powered by SWTCH, seeking to meet resident demand and attract newcomers to the property.
The results?
Existing demand was more than met by the charging stations being installed. In fact, The Lofts at Beacon made their chargers accessible to the public, using them as a tool to attract non-residents in hopes that they might fall in love with the area.
The property expects retention to improve thanks to onsite charging—EV drivers tend not to want to live anywhere without charging onsite. And the impact is steadily growing, with more residents electing to purchase EVs thanks to the charging units being online at their property. In addition, The Lofts at Beacon are indeed seeing a large number of drivers from outside their community coming to charge up and getting to see all the property has to offer.
It’s a great example of the power and value of EV charging for multifamily properties, and you can read the full story here.
Demand for onsite charging at Class B and Class C residential properties is going to increase rapidly before long. By taking the steps to plan, secure funding, and get ahead of demand, you can gain a strong competitive advantage at a far lower cost than you’ll pay by waiting. It’s well worth taking the leap today.
Want to secure an affordable, high-quality EV charging solution for your property?
Get in touch with our team! We’ll be happy to help you create the perfect solution for your needs.
Written by
Rob Côté
Marketing Communications Manager, SWTCH
