Look around the downtown area of most cities today, both large and small, and you’ll likely see a skyline dotted with construction cranes where both residential and mixed use space are developed. There’s no doubt that multi-dwelling units are growing in popularity and developers are starting to invest. However, with continued interest and growth comes increasing competition. Finding ways to differentiate your property and MDU from others is more important than ever and EV charging stations are a great option. Not only do they provide your residents with the amenities they want, but they can do so much more for you in terms of occupancy rates and net operating income.
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The Rise of the MDU
From city skylines to suburban tracts, MDUs are rising in popularity. As cities and developers look to maximize space on available parcels, MDUs are the perfect solution for both developers and residents, especially in areas where housing is in high demand. In fact, in 2023, nearly half (44%) of all new housing building starts are expected to be MDUs.
More and more cities, even on the outskirts, are focusing on building up rather than out. On top of maximizing space, it can help create walkable and “15-minute” cities, a quality in high demand. For Gen Z and millennials, but also for an aging population looking to downsize but not lose amenities or a community feel. MDUs present a huge opportunity, especially as they move away from the stale look of late 20th century high-rises and step into the future of smart buildings designed with aesthetics, sustainability, and technology in mind.
However, it is important to note that because of the rise in popularity, competition between properties is fierce and so finding ways to differentiate an MDU property for another will become essential.
Where MDUs Fit in EV Infrastructure
For a majority of EV drivers, 80% of them, charging at home is the norm. When you own a single home, it’s pretty easy to install a level 1 charger at your residence, but the same isn’t true for MDUs. There are a few challenges for EV drivers and MDU owners looking to attract and accommodate EV drivers.
While many MDUs who provide dedicated parking spaces for residents allow those residents to install a charger, what happens when there’s a critical mass of EV owners? As many MDU owners and managers have seen, once one or two residents make the switch, it sets off a chain reaction of EV purchases. Suddenly, one charger becomes many and the logistics become an issue.
In short, your parking lot or garage now has the need for a significant, and likely upgraded, electrical system. For many condos, this becomes the best solution, providing upgraded infrastructure and pushing the cost of the actual charger onto the unit owner. Still, there’s an infrastructure upgrade, costs associated with that, and other concerns.
For example, is it a parking lot or a garage? Parking garages present their own unique challenges, especially when it comes to considering an EV charging management solution that allows you, as the property owner, to manage the chargers and network, and by proxy the power loads. Similarly, on shared networks, connectivity can be an issue when buildings share servers where there’s a steady demand as well as spikes when it comes evening and everyone is attempting to charge.
Certainly other options exist, as well as other business models for non-condo MDUs where most of the residents are renters, but the challenges and demands remain, largely, the same. So, for MDUs, we shouldn’t underestimate the role these properties play and will continue to play in providing the EV infrastructure we’ll need to meet future demands.
As a result, those planning to build, renovate, or simply facing increased demand would be wise to consider how their property can meet the growing number of EV drivers. One important step is to consult with an EV charging solution provider who can provide full support, including site analysis which can help you avoid installing and implementing more or less than what you need and help you prepare for future growth in electric vehicles.
Top Benefits of EV Charging for MDUs
While there are challenges, they can largely be overcome with proper planning, a solid implementation plan, and ongoing support. And, perhaps most importantly, the benefits of an MDU EV charging far outweigh the challenges you might incur.
1. Attract and retain high-value residents
Certainly, and thankfully, more affordable EVs are hitting the market, but as of 2020, a majority of EV owners earned $100k or more a year. For MDUs, looking to attract long-term stable residents, this is an attractive demographic.
As noted above, many of the amenities one MDU is using to attract those tenants, many other MDUs are also offering from gym and pool facilities and rooftop lounges to managed wi-fi and other bundled services like cable. It’s getting harder and harder for MDUs to differentiate themselves in a crowded marketplace. That’s where EV charging comes in.
We’ve not yet reached the saturation point for MDUs with EV charging stations so this feature can provide a real advantage when it comes to attracting and retaining high-value residents.
2. Be prepared for the future
EV adoption is not an if, it’s a when. In 2022, EV purchases increased 55% in the US and future growth is expected. In fact, experts predict a 35% increase year-over-year. That means even if you’re not yet seeing the demand, you’ll be prepared when you do. And, when it comes to choosing your EV charging network you want to make sure that’s future proofed as well, so look for an EV charging solution that is utilizing OCPP and prepared for OCPI.
The industry itself is focused on interoperability, creating greater accessibility and ease of use for drivers, so ensuring your system is designed to handle future EV technology will save you the headache later.
3. Create a new revenue stream and increase NOI
If you opt to have MDU owned charging stations on site rather than passing the cost on to residents who will purchase a level 1 or 2 charger, you can create a new revenue generating opportunity. As mentioned above, there are a variety of business models available, but if you opt for public charging stations on your property, the right EV charging platform management system can help you optimize and manage power usage but also manage and optimize revenue streams.
For example, you can charge less for charging during the day, when demand is lower (and useful for residents who work remotely) or you can charge more for overnight charging. Additionally, you can offer incentives for new or long-term residents as you can control charging fees based on the user/driver. Flexibility and opportunity can be plentiful.
4. Maintain control and visibility into your charging stations
Often, building owners worry that adding new technology and hardware to a property adds to overhead and can be a resource drain when it comes to oversight and maintenance. Again, we’ll point to making a smart choice when choosing an EV charging platform management system and EV charging network.
With the right choice, you can have full transparency when it comes to users/drivers, power usage, pricing, revenue and more. For example, NovaCHARGE’s solution provides our NovaBOT which is a proactive monitoring maintenance and service “robot” providing level 1 support by helping you spot issues before they happen. This kind of support and remote administration means you don’t lose time or resources to charging station management and maintenance.
If you’re ready to talk about EV charging stations and a full-service EV charging solution provider, schedule a call with our experts today. You can help keep your residents happy at their home and we’ll help you keep them happy on the road.
