Charging Through EV Risk
Multifamily demand is ramping up. Are you as prepared as you should be?
As consumers increasingly lean toward electric vehicles, multifamily owners and managers must gear up their properties to provide residents with EV charging capabilities.
But without a well-thought-out strategy, your investment will not deliver the desired results for residents or for your bottom line. As EV adoption grows in the U.S., multifamily operators need to adopt solutions that prioritize safety, scalability and long-term efficiency.
Strategies for success
When it comes to EV charging stations in multifamily, most experts agree that bad planning is the biggest source of risk. If you don’t understand your residents and their future EV requirements now, correcting this down the line can turn both costly and challenging.
“The best advice … is to know what your existing and potential customers need and expect,” said John Weber, principal electrical engineer at HSB.
Also, here’s a Catch-22 you might have to install your way out of: Your current residents don’t need any, but a lack of on-site chargers may deter prospective renters. At the same time, simply installing a few isolated ones in response to initial requests will probably set your community up for trouble down the line.
“Approaching the first few EV charging requests as ‘one-offs’ is simple but leads to stranded assets,” noted Rob Detta Colli, director of the north region at FirstService Energy in Canada.
There’s no question we are going to see more and more cars going in the direction of EV. You can be a skeptic, but you’re going against the weight of evidence.
—Barry LePatner, Founder, LePatner & Associates
Instead, industry experts recommend establishing a dedicated electrical backbone that allows for future expansion and intelligent load management. By running power from a building’s existing electrical system to a dedicated EV panel, property owners can efficiently scale charging capabilities as demand grows, while maintaining balanced power distribution.
What’s more, installing meters for electricity usage is crucial for both utility management and sustainability.
“Unmetered charging leads to overconsumption,” commented Noah Hager, vice president of asset management at AvalonBay Communities. Tracking usage helps owners manage emissions while preventing unnecessary strain on the electrical system.
EV-ready infrastructure is a must for any new developer, irrespective of location or present demand, according to Whitaker Jamieson, a program manager at Forth Mobility.
“Any wise long-term-holding property owner should see that infrastructure as a huge long-term opportunity, as any infrastructure installed during initial construction is a big cost-saver in five to 15 years,” he said. This planning is a crucial money saver, as current estimates range between two to 10 times more spent on EV charging infrastructure after construction is completed.
Jamieson recommended that all owners and developers, despite where they are in their EV journey, prioritize their panel capacities and talk with engineers about the right amperage that suits their residents, building codes and parking configurations. Measures like this can future-proof multifamily against the changing tides of EV.
Risks and concerns
When it comes to installing chargers, there are established practices to ensure minimal risk. Consider, for example, wear and tear on wiring.
“Like other pieces of equipment, chargers can malfunction or manufacturers can go out of business, making replacement parts difficult and costly to find,” noted Elena Lebensbaum, director of sustainability at TEI.
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Another potential issue is electrical fires. While EV chargers are generally safe and undergo rigorous testing, things like faulty wiring, overloaded circuits or improper installation can present hazards over time.
“Lithium-ion batteries can fail due to thermal runaway and cause hard-to-extinguish vehicle fires on the property,” said Weber. “It’s hard to know the existing conditions or abuse of vehicles that are parked on-site.”
Regular inspections and proper maintenance are critical to mitigating these risks. Community owners and managers should ensure that existing fire-protection systems are in place and upgraded, as well as review any fire risk with local fire department and building officials. With these precautions in place, risk remains at bay.
What we know, in the near term, is that many customers want (EV charging). We also know that, for new development, most jurisdictions are requiring a great deal of it.
—Noah Hager, vice president, AvalonBay Communities
“Electricity is pretty dang safe right now,” shared Whitaker. “If EV chargers are installed properly, the risk of fire is extraordinarily low.”
To be extra safe, the U.S. Fire Administration recommends installing a residual current device with each charging unit. This ensures that if a fault is detected, power is turned off to avoid potential fire hazards. Purchasing chargers from highly rated suppliers that are certified by a nationally recognized testing laboratory can further mitigate these risks.
“Safety concerns are few today not only due to the proclivity of EV chargers and their variety but because they have simplified them to be focused on electrical support,” said Barry LePatner, founder of law firm LePatner & Associates LLP.
Financial risks: Is EV charging worth it?
The cost of EV chargers in multifamily varies greatly and is often one of the biggest barriers to adoption. Variables include the type of charger, location, number of charges, preexisting infrastructure and site specifics. Usually, the faster the charger fills up a car battery, the more expensive it is. Then, proximity to outlets can play a factor.
“Chargers that are close to the electricity source will require short runs of copper wiring and conduit,” said John Weber, principal electrical engineer with HSB. “Installations that require many chargers with large capacity may require upgrades to the electrical service to increase the electric capacity for the install and possible future expansions.”
The cost should be less than $5,000 per charger, noted Whitaker Jamieson, a program manager with Forth Mobility. It can sometimes go down to $2,000 to $3,000 each when installing multiple chargers at one site. But if a community already has an EV-ready parking lot, the cost can drop to around $1,000-$2,000 per charger, or even less.
Maintenance is virtually free in the first few years, said Jamieson. Around year three or four, it’s recommended to have a technician perform an inspection just to be sure.
“Estimate roughly $500 per year for maintenance to be safe,” he added. “While this may not be enough if the chargers are vandalized, it should cover typical wear and tear over five to six years.”
You then have fees for licensing, service, warranties, software subscriptions, operation services and networking, which are typically bundled into monthly or annual payments. While all of this can pile up quickly, some incentives can compensate. Experts recommend exploring and applying to all available incentive programs found through electric utility websites and vendors, which can help with initial expenses.
Here’s a key takeaway: Some of these costs may seem steep, but the end game is resident satisfaction, rate increases, and higher application and renewal rates. Readily available EV charging sites can bring all that.
Safety measures
Staying safe will also keep maintenance and repairs to a minimum. For example, experts suggest putting bollards in place to protect the chargers and installing them away from potential collision zones.
Jamieson encourages proper signage, lighting, parking strips and, if feasible, surveillance cameras.
“Placing chargers in well-lit areas, near where people walk regularly, can help reduce the risk of vandalism,” he noted.
To ensure prolonged resident safety, Weber encourages measures like snow clearing around chargers, adequate sanding and salting, emergency help-call stations, and even perimeter fencing to minimize copper cable theft.
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“Some companies have come up with new ways to combat copper cable theft from the chargers by designing charging cables with hard-to-cut inner steel cables that resist cable-cutters,” Weber said. “Will you want to invest in improvement like this that could reduce your future vandalism costs?”
Keeping pace
Once current chargers are safe and protected, owners and managers can focus on keeping up with new EV technology rollouts.
“The technology in the EV charging industry is evolving rapidly,” said Lebensbaum. “This presents a significant risk that existing hardware could become obsolete or fail to meet customer expectations, by being either too slow to charge or lacking additional features (e.g., vehicle-to-grid technology).”
The installation of unapproved new tech or charging adapters can damage EV batteries, cause shocks and increase fire hazards. To make sure EV chargers are safe and usable in the long term, owners and managers have to stay on top of consumer changes in vehicle preferences, charger preferences and overall EV adoption.
“Many considerations will revolve around the physical installations and risks,” Weber said. “It will be equally important to consider and pre-plan for how the charging installations may affect how tenants interact with each other and building management when new common-use systems are introduced on the property.”
