Why Apartment Complexes Should Reconsider Free EV Charger Installations with Revenue Sharing Models
As electric vehicle (EV) adoption rises, apartment complexes are increasingly exploring options to install EV chargers to meet tenant demands and attract eco-conscious renters. In this landscape, some companies offer a seemingly attractive deal: they will install EV chargers for free in exchange for keeping the revenue generated from charging. While this might seem like a win-win at first glance, there are several reasons why property managers and landlords should reconsider and carefully weigh the costs and long-term implications of such deals.
- Revenue Loss: Missing Out on a Growing Market
One of the primary drawbacks of these “free installation for revenue” models is the long-term loss of potential revenue. EV ownership is increasing rapidly, and with it, the demand for charging services. Allowing a third party to keep all the revenue from charging stations may seem inconsequential initially, but as more residents drive EVs, the potential earnings will grow.
Over time, the income from charging can become a meaningful revenue stream that could offset initial installation costs if you invest in the infrastructure directly. By giving up control, complexes miss out on a potentially lucrative opportunity to generate extra income.
- Lack of Control and Flexibility
When a company provides chargers in exchange for revenue, they typically dictate terms for pricing, maintenance, and upgrades. This creates a scenario where the property management has little to no control over how much tenants are charged for using the stations or the quality of service they receive.
If tenants find that the rates are unreasonably high or that the chargers are frequently malfunctioning, this could lead to dissatisfaction and complaints directed at the apartment complex, even though they are not responsible for the system’s operation. Maintaining control over the pricing model and service levels allows management to prioritize tenant satisfaction.
- Potential for High Charging Fees
Without control over the pricing of charging services, apartment complexes risk alienating their residents. Third-party companies may impose high fees on charging to maximize their own profit margins. This can make living at the complex less appealing for EV owners, especially if nearby complexes or public charging stations offer more affordable options.
By owning and operating the EV chargers themselves, apartment complexes can set fair pricing that aligns with the expectations of tenants, fostering good relations and potentially making the complex more attractive to prospective renters.
- Complications in Future Expansion and Upgrades
While “free” installations sound appealing in the short term, these third-party agreements can complicate future expansion plans. As EV adoption grows, the need for more charging stations or upgraded infrastructure (like faster chargers) will increase. However, if a third party controls the equipment, any expansions or upgrades will depend on their business decisions. If the company decides it’s not in their financial interest to upgrade, the apartment complex may be left with outdated or insufficient charging infrastructure.
By taking ownership of the infrastructure, complexes can ensure that they remain agile and responsive to the growing needs of their residents, and not beholden to an outside company’s timeline or interests.
- Potential Long-Term Costs
Even though the initial installation is free, relying on a third-party provider can come with hidden long-term costs. Some companies may offer maintenance and repairs as part of the package, but others may charge additional fees for servicing or upgrades. Furthermore, these agreements often involve long-term contracts, making it difficult or expensive to switch providers or update systems if issues arise.
Investing in your own infrastructure might have upfront costs, but it allows you to plan and budget for the maintenance and future needs of the system on your own terms, without surprise fees or restrictive contracts.
- Resident Preferences and Competitive Advantage
In a competitive rental market, offering in-house EV charging at reasonable rates can be a strong selling point for attracting and retaining tenants. Renters, particularly those who drive electric vehicles, may view on-site charging as a valuable amenity that saves time and offers convenience. Furthermore, residents may prefer knowing that the property management directly controls the service, leading to a sense of security that issues will be promptly addressed.
Complexes that take the initiative to install and manage their own charging infrastructure may find themselves at an advantage over others that partner with third parties, especially as the demand for EVs rises.
- Environmental and Social Responsibility
Many apartment complexes are striving to become more eco-friendly, and installing EV chargers is part of this effort. However, choosing a third-party provider that charges excessive fees or is slow to maintain and upgrade the system can undermine these efforts. If residents feel that the complex isn’t doing enough to support EV adoption or that charging is inconvenient, it may damage the property’s reputation as an environmentally responsible community.
By managing their own charging infrastructure, property owners can ensure that it aligns with their broader sustainability goals, while also potentially taking advantage of available incentives or tax credits for green building practices.
Conclusion: The Hidden Costs of “Free” EV Charger Installations
While the offer of free EV charger installation in exchange for revenue might seem appealing on the surface, it often comes with significant trade-offs in revenue, control, and flexibility. In the long term, these deals can cost apartment complexes more than the initial investment in their own infrastructure, both in terms of financial opportunity and tenant satisfaction.
By taking ownership of the charging stations, apartment complexes can maintain control over pricing, ensure a higher level of service, and secure a valuable revenue stream. Although the upfront cost may be higher, the long-term benefits of autonomy, resident satisfaction, and financial returns make it a worthwhile investment. As EV adoption continues to grow, having a well-managed charging infrastructure will become an increasingly important amenity for renters.
