Following the surge in electrical vehicles (EV), whether you are developing a mixed-use site, managing a commercial property or planning a new residential project, integrating EV infrastructure is no longer optional – it’s an asset, a marketing advantage and increasingly, a necessity.
Landowners and developers have the opportunity to future-proof their properties, attract eco-conscious tenants and unlock new revenue streams by integrating EV charging stations. However, negotiating smart lease terms can be the difference between a forward-thinking investment or a legal headache.
So, what do developers and landowners need to consider?
Legal considerations
- You may need to update leases or service charge provisions to reflect EV charger installation and usage
- For commercial developments, you may need to negotiate new terms in tenant leases for power usage and access rights to EV bays
- Ensure responsibilities are clearly defined in documents; in particular repair/maintenance, insurance and servicing clauses
Operational considerations
- Be aware of planning and building requirements – do you need planning permission or do permitted development rights apply?
- Know your audience – are the intended users a) residents, b) commercial tenants or c) public users? Your intended user base significantly affects the type of chargers you install, your choice of operator, the terms of any leasing or usage agreements and the potential rental income
- Speak with your Distribution Network Operator to assess grid capacity early in the planning process as you may need to increase power supply
- Who owns and maintains the chargers – will this be the developer, landlord, tenant or managing agent? Is there a third-party operator?
Financial considerations
- How will electricity costs be measured and billed?
- Monetise the chargers – what form of revenue stream is best for your site? E.g. share of the revenue, base rent or a combination of both
- The additional revenue streams generated by EV chargers may be attractive to lenders and investors seeking stable and predictable returns
Let’s future-proof your property – get in touch with the Real Estate team to begin your EV journey.
