To get the top renters today, it is no longer enough to be focused on the size of your rental property. Many renters are now looking for rental properties that are sustainable and have all of the modern conveniences and efficiency that come with them.
By installing items such as EV charging stations, you can make your rental property stand out from the rest by showing prospective renters that they will be renting from a company that is willing to invest in the future.
This article will explore everything you need to know about electrifying your rental, turning it into an eco-friendly investment for the modern renter.
Why Modern Amenities Matter in Rentals
Today’s tenants expect modern conveniences to be standard, and are willing to pay for them as part of their rent. The updated technology can affect your vacancy rates, and/or potential rental income, and/or your ability to attract higher quality tenants.
Here is how updating with smart home features or electric vehicle (EV) charging will provide an advantage in running your real estate business.
1. Meet the Demand of a New Tenant Profile
Smart home and electric vehicle charging station rentals are in high demand by young and professional tenants. These tenants want to live efficiently and sustainably, and they want to do it with modern technology. The use of updated technology will allow you to reach and retain this growing demographic and keep your property competitive and desirable.
2. Command Premium Rental Rates
Some upgrades will allow you to charge a tenant a little more per month. This is due to the increased amenities and convenience provided by the amenities. This may include features such as smart lock access, efficient appliances, etc., in which tenants recognize the benefits and are willing to pay more for. This creates an increase in the return on your investment.
3. Reduce Vacancy and Attract Tenants Faster
A modern property that is ready to be moved into with features that tenants desire will stand out when compared to other properties that are available for lease. With this advantage you will have a competitive advantage when trying to find a tenant, which will decrease the time you spend trying to rent your property. This indicates to potential renters that you take pride in maintaining your property and that it is forward thinking.
4. Enhance Tenant Satisfaction and Retention
Happy and satisfied tenants will often continue to rent. When you provide amenities that make every day easier such as package delivery lockers, high speed internet connectivity, and in unit washers, you create an environment where tenants will be happy. Happy tenants will be loyal tenants which can save you both time and money by reducing the number of times they turn over.
5. Future-Proof Your Investment
Using sustainable technology can prepare your property for future regulatory changes or standards. Property management in Northern Virginia understands how important it is to stay ahead of trends in an area with high demand in keeping long term value and appeal.
EV Charging in Rentals: How to Meet Tenant Expectations
With the rise of the Electric Vehicle (EV) market, an increasing number of renters are viewing access to charging as a necessity rather than a nice-to-have. It has become a key deciding factor in whether or not they will rent a property.
Below, we’ll outline how to successfully implement EV charging at your rental property.
Choose the Right Charging Solution for Your Property
You can find an option that fits your budget and meets your property needs. The highest level of charging speed will be achieved using a 240-volt Level 2 Dedicated charger for overnight charging.
If you want a less expensive method, you can also install a 240V dedicated outdoor plug. Your first step in determining the most cost-effective and safe method to achieve this will be to hire a licensed electrician to assess the electrical capacity of your building.
Navigate Installation and Cost Considerations
The costs of installation can vary depending on the electrical capacity of your panel and the distance from the electrical panel to the charging station location. In many cases, the costs can be recovered through federal tax credits, state incentives or local utility rebates.
Additionally, you can recover some of the costs by adding a premium charge to the monthly rental income as a “premium” for being able to use an EV charging station. By doing so, the charging station becomes a new source of income for the building owner.
Implement Clear Access and Payment Policies
Determine the way in which the charging station will be utilized. Will it be assigned to only one unit or could it be made available to multiple residents by having some type of booking system? Clearly define the rules, fees and responsibilities regarding use of the charging station within your leases with a clear addendum that outlines these requirements.
Using a property management company is beneficial because they have expertise in managing billing, access, and maintenance for a charging station, reducing the time you spend on station operations.
Market Your Property Effectively
When you have an electric vehicle (EV) charger installed in your property, it should be prominently used in your advertising efforts. Remember to include “EV Charging Available” in the titles, descriptions, and images for your listings. Providing EV charging in rentals can differentiate your property from competitors.
Tips to Manage Costs and Maximize Convenience
Like many important tech trends, implementing them correctly can be all your business needs to boost performance. However, such implementation can be tricky.
The following will assist you to do this effectively to take full advantage of these new technologies for both yourself and your tenants.
- Research Incentives and Rebates: Reduce the initial cost of installing an EV charger or other energy-efficient appliances with available federal tax credits, such as Section 30C, and state grants and rebates offered by your local utility company.
- Start with Scalable Solutions: Rather than installing a full charging station, start by installing a heavy-duty 240V outlet. This will allow you to meet your needs today at a lower cost and allow you to easily convert it to a full charger in the future.
- Utilize Smart Technology: Install smart chargers and thermostats. These can track your usage of electricity, schedule your charging during the cheapest times (i.e., when electricity is low-cost); and they can be controlled remotely from your tenant’s smartphone.
- Implement Clear Fee Structures: Decide how to recoup electricity costs. Options include a flat monthly premium added to rent, a separate metering system, or a user-based payment portal through the charger’s app.
- Partner with a Professional Manager: A professional property management company will take care of all aspects of the process, such as vetting and hiring installers and managing incentives; billing tenants; scheduling maintenance, which saves you time and stress.
If you plan ahead and use available tools, you can provide your renters with many of the modern amenities they are looking for at a reasonable cost. By doing so, you protect your investment, simplify the management of your rental properties, and help your rental property stand-out as a convenient and future ready place to live.
Conclusion
You are making a very clear statement with modern eco-friendly attributes such as electric vehicle charging at your property that you are committed to attracting and retaining responsible renters.
With your new amenities you will be able to rent your properties at higher rates and greatly reduce vacancy. Your forward thinking and commitment to sustainability will give your rental property the ability to compete well into the future with other rental properties. The key is to start now to electrify your advantage.
