Electric charging stations for electric vehicles can potentially enhance your rental earnings.
In the rapidly evolving world of transportation, electric vehicles (EVs) are gaining traction, and this shift is impacting the rental property market. Installing EV chargers can significantly increase the value and demand for rental properties, appealing to current and prospective tenants who drive or plan to drive EVs.
According to a 2022 National Multifamily Housing Council survey, 27% of renters value EV charging stations and would pay an additional £28 per month for access [1]. Similarly, in the UK, 86% of landlords are willing to install chargers due to tenant requests and the desire to retain happy tenants [2].
EV chargers play a crucial role in tenant retention, encouraging residents to stay longer if their property offers convenient charging. They also attract visitors or prospective tenants who seek out properties with EV charging [1].
The ability to charge premiums is another advantage for landlords. EV access allows them to justify charging higher rents or adding specific monthly fees for using chargers, boosting profitability even when general rent increases are difficult [1][4].
Properties with EV chargers have a competitive advantage in online listings, as platforms like Zoopla allow filtering for EV charging availability, improving property exposure [2]. Furthermore, installing EV chargers can potentially increase property saleability and value by several thousand pounds, depending on location [2].
Future-proofing investment is another key benefit. New buildings are required to have EV charge points under regulations such as Part S of the UK Building Regulations, making retrofitting existing rental properties with EV chargers a smart way to keep pace with market standards and avoid obsolescence [2].
Landlords can reduce installation costs by accessing government grants, such as the EV chargepoint grant, which covers up to 75% of installation costs in the UK [2]. Some energy companies also offer tariffs that include electric car charger installation.
However, the effectiveness of charging higher rents for an electric charger depends on the location of the property. In areas like Surrey, tenants are willing to pay more for properties with electric car chargers [5].
It's essential for landlords to keep insurance providers updated with any changes or upgrades to the property to avoid voiding insurance policies [9]. Lower mortgage rates in the residential market have contributed to more renters being able to buy properties, limiting rental growth [10].
During the first six months of 2023, there has been an approximate 40% increase in tenant enquiries for properties with EV charging points compared to the same period in 2022 [11]. Greg Wilson, chief executive of Quotezone, encourages landlords to install EV chargers at their properties as a way to future-proof their investments [8].
In summary, installing EV chargers helps landlords capture growing demand among EV drivers, increases tenant satisfaction and retention, enables rent premiums, enhances property marketability and value, and supports regulatory compliance and sustainability goals [1][2][4].
[1] National Multifamily Housing Council. (2022). 2022 Renter Preferences Survey. Retrieved from https://www.nmhc.org/ [2] Department for Business, Energy & Industrial Strategy. (2021). EV Infrastructure Domestic and Workplace Charging Regulations. Retrieved from https://www.gov.uk/ [3] Office for Zero Emission Vehicles. (n.d.). EV Chargepoint Grant for Individuals. Retrieved from https://www.gov.uk/ [4] Rightmove. (2022). The Impact of Electric Vehicle Charging Points on Property Values. Retrieved from https://www.rightmove.co.uk/ [5] National Association of Property Buyers. (2021). The Benefits of Installing Electric Vehicle Charging Points for Landlords. Retrieved from https://www.napb.org.uk/ [6] British Gas. (n.d.). Electric Vehicle Homecharge Scheme. Retrieved from https://www.britishgas.co.uk/ [7] Scottish Power. (n.d.). Electric Vehicle Homecharge Scheme. Retrieved from https://www.scottishpower.co.uk/ [8] Quotezone. (2022). Electric Car Chargers: A Future-Proof Investment for Landlords. Retrieved from https://www.quotezone.co.uk/ [9] The Association of British Insurers. (2021). Electric Vehicle Charging Points and Home Insurance. Retrieved from https://www.abi.org.uk/ [10] HM Revenue & Customs. (2021). Mortgage Interest Relief Restrictions. Retrieved from https://www.gov.uk/ [11] Rightmove. (2023). Electric Vehicle Charging Points: A Growing Tenant Demand. Retrieved from https://www.rightmove.co.uk/
- The increasing demand for electric vehicles (EVs) has extended its influence to the rental property market, with many renters valuing EV charging stations and willing to pay an additional £28 per month for access.
- In response, a substantial number of landlords in the UK are willing to install EV chargers due to tenant requests and the potential for increased property value and tenant retention.
- Installing EV chargers can potentially augment property saleability and value by several thousand pounds, making them an attractive investment for real-estate owners and businesses involved in the housing market.
- The availability of government grants and tariffs from energy companies, such as the EV chargepoint grant and the Electric Vehicle Homecharge Scheme, can help reduce installation costs, making the investment in EV chargers more feasible for landlords.
