The Growing EV Challenge
Your tenant has an electric vehicle or may get one. There are many issues that can arise and must be dealt with prior to lease signing, or, if the tenant has no electric vehicle and decides to buy one, must be addressed. If you do not have experience with electric vehicles, this is an important topic where you want to be up to speed.
More and more tenants currently have electric vehicles and some will decide to get one during the tenancy and that is when a myriad of problems can occur. Before you accept a tenant with an electric vehicle, you must ask the proper questions, get the proper answers and use the proper addendum or you are going to be in for surprises, conflicts and maybe even a devastating fire.
You need to expect the tenant will be charging from home all or some of the time despite them saying they charge at work or elsewhere.
The Simple Charger Isn't So Simple
Now, some electric vehicles can be charged with a simple extension cord and portable electric vehicle charger. Seems harmless enough at first. The tenant runs an extension cord from the house or garage into the charger and slow charges the vehicle or plugs the charger directly into a plug in the garage. No big deal right?
You need to picture what will be happening. Is the outlet capable of handling the amperage? Often it is not and can end up overloading the circuit, cause damage to other items connected to the circuit, or, worse yet, cause a fire.
If they are not charging in the garage or one does not exist, expect an extension cord running out of the garage, window, or being plugged into an outside outlet if there is one nearby. Is this what you want? Will they be using a proper extension cord? Will it be a trip hazard? Will your rental be in a townhouse where other tenants park out front? Will the HOA have a problem with a big orange extension cord running down the driveway to a vehicle?
Expect the worst and expect the tenant to not know how to properly handle this.
The Professional Installation Question
Now, the cheap plug in slower charger is not the ideal way many owners of electric vehicles may want to use for charging. Some will eventually want a proper faster and more powerful charger that normally require 240 volts, and, if installed, this should be done by a professional electrician. A proper charger connected to 240 volts is much faster and some tenants may get tired of using a slow portable charger.
This brings us to the professionally installed faster charger. Electric vehicle owners often want an electric vehicle charger installed and many are willing to pay for this. Is that ok with you? Who is going to install it? Some friend or a licensed electrician? Who is going to pay for it? Will it be you, the tenant, or you and the tenant split the cost? This cost could be more than you or the tenant expects as a 240 volt line must be run to the charger.
Critical Questions You Must Address
- Is the outlet capable of handling the amperage required for EV charging?
- Who will install any charging equipment—a licensed electrician or "some friend"?
- Who pays for installation costs, which can be substantial for 240-volt lines?
- What happens to installed equipment when the tenant vacates?
- Does the homeowner's insurance policy exclude EV charging liability?
- Who is liable if the charger malfunctions and causes a fire or damages appliances?
- Will the tenant share charger access with friends or neighbors?
What Happens When They Leave?
When the tenant vacates, if they paid for the charger and the installation, there is a high chance that they will take it with them upon vacating. The chances are extremely high, just like a tenant who buys an appliance and sure enough, takes it with them when vacating.
Will they rip it off the wall and take it with them? You bet. It does not matter what the tenant says and if it is not addressed, you could be faced with an alteration you did not want.
The Insurance Problem
You or your owner may not even want an electric vehicle being charged in the garage. Insurance companies don't like it and there could be an exclusion in the homeowner's policy.
Who will pay if it malfunctions causing a fire or causing appliances to burn out? Will your tenant share the charger use with their friends or neighbors? All these questions can easily be answered and the proper addendum used to set out all the terms.
The Solution: Use the Proper Addendum
Ask the applicant if they have an electric vehicle and if they do, ask us for the proper electric vehicle charger addendum and make sure it is all done correctly. Get everyone on the same page about the electric vehicle charger.
Now, some owners already have a professionally installed charging station at the home. This must be addressed. Is the tenant permitted to use it? Who is responsible for it? Who will fix it if it breaks? The addendum must be used and we have what you need.
Take the time and understand all the issues so you have a smooth process in the event the tenant has an electric vehicle or decides to get one. Nobody needs surprises.
