When it comes to real estate investments, Net Operating Income (NOI) is the key metric that drives property value and financial returns. Traditionally, real estate investors have focused on rental income as the primary source of NOI, but with the rise of electric vehicles (EVs), there’s a new revenue stream on the horizon: EV charging stations. What’s exciting is that $1 of revenue from EV charging is worth more than $1 of rental income, especially when you factor in its potential for higher NOI and future growth.
The reason? EV charging revenue has zero associated expenses—meaning every dollar earned from charging is a pure dollar of NOI. Compare that to rental income, which typically comes with maintenance costs, property management fees, and other expenses that cut into your profits. Additionally, EV charging is viewed as a growth technology, which translates into a lower cap rate, further enhancing the value of this revenue stream.
Bob Waun, co-founder of DIRT Realty, believes that EV charging represents a game-changing opportunity for real estate investors. “When you generate revenue from EV charging, it’s essentially profit without the usual operating costs that come with traditional rent,” says Waun. “It’s a cleaner, more efficient source of NOI—and as EV adoption continues to grow, this revenue will only become more valuable.”
Let’s break down why $1 of EV charging revenue is a better investment than $1 of rent and why it’s time for real estate owners to take advantage of this growing market.
EV Charging Revenue: 100% Pure NOI
Unlike rental income, which comes with a range of associated expenses—such as property maintenance, repairs, and management fees—EV charging revenue is pure profit. When an EV driver plugs in and pays for electricity, the revenue generated goes directly to the property owner’s bottom line with virtually no operating costs.
This is because EV chargers, once installed, require minimal maintenance. Compared to the costs of maintaining a rental unit—plumbing, electrical repairs, landscaping, cleaning—EV chargers have few ongoing expenses. As a result, the $1 generated from EV charging translates directly into $1 of NOI, whereas $1 of rent might only net a fraction of that after expenses.
"Every dollar earned from EV charging is profit that flows straight to NOI," says Waun. "You’re not dealing with maintenance calls or tenant issues—just clean, simple revenue that boosts your bottom line."
EV Charging Has a Lower Cap Rate and Higher Valuation Potential
Another reason EV charging revenue is so attractive to real estate investors is its potential to achieve a lower cap rate compared to rental income. The capitalization rate (cap rate) is the ratio of a property's NOI to its market value, and a lower cap rate typically means the asset is perceived to have higher growth potential and lower risk.
As EV adoption continues to rise, the demand for charging stations is expected to grow exponentially. This positions EV charging as a high-growth technology, meaning that the revenue generated from EV chargers is seen as more valuable in the long run. Investors are willing to accept a lower cap rate on EV charging revenue because they expect future earnings to increase as more tenants, visitors, and businesses rely on these services.
By contrast, rental income is often tied to local market conditions and can be more volatile, with fluctuating occupancy rates and increasing maintenance costs. With EV charging, you’re tapping into a rapidly expanding market that’s driven by a global shift toward electric vehicles and sustainability.
"EV charging is a growth industry, and that makes it more valuable than traditional rental income," Waun explains. "With EVs becoming the norm, revenue from chargers is only going to increase, and investors are seeing this as a safer, more lucrative bet."
The Power of Future-Proofing: EV Charging as a Competitive Advantage
As electric vehicles become more mainstream, having EV charging infrastructure on your property is becoming an essential amenity. Properties that offer on-site charging can command higher rents, attract higher-quality tenants, and experience better tenant retention. For residential properties, offering charging stations is no longer just a perk—it’s a necessity for attracting eco-conscious tenants.
For commercial properties, EV chargers add significant value by attracting customers who need a convenient place to charge their vehicles. In retail and office spaces, chargers can keep customers on-site longer, increasing sales and foot traffic. For multifamily housing, they provide a key amenity that can differentiate a property from the competition.
“In a few years, tenants will expect EV charging as much as they expect high-speed internet,” Waun says. “Properties that don’t invest in this technology now will fall behind. EV charging isn’t just about generating revenue—it’s about future-proofing your property for the next generation of tenants.”
Comparing $1 of EV Charging Revenue to $1 of Rent
Let’s compare $1 of EV charging revenue with $1 of rental income to see why EV charging comes out ahead:
EV Charging Revenue:
Pure NOI: No maintenance or management costs.
Growth Potential: Demand for EV charging is increasing, which makes this a high-growth technology with a lower cap rate.
Future-Proofing: Adds long-term value to your property as EV adoption rises.
Rental Income:
Expenses: Maintenance, repairs, property management, and vacancy losses reduce the net income generated from rent.
Limited Growth: Rent increases are tied to market conditions, making it harder to capture exponential growth compared to the fast-growing EV market.
Volatility: Tenant turnover, market fluctuations, and local economy impact rental income more significantly than EV charging revenue.
"At the end of the day, a dollar from EV charging is simply more valuable than a dollar of rent," says Waun. "It’s higher-quality revenue with fewer headaches, and it positions your property for the future."
The Time Is Now: Capitalize on EV Charging
As the electric vehicle market grows, the demand for EV charging stations will continue to rise, making this the perfect time for property owners to invest in this technology. By adding EV chargers to your property, you can generate new, low-maintenance revenue, boost NOI, and increase your property’s long-term value.
With leading EV charging installation partners like Chargestar offering full-service solutions, property owners can easily add EV chargers and start reaping the benefits of this fast-growing market.
“Investing in EV charging now isn’t just about the revenue—it’s about staying ahead of the curve and future-proofing your property,” Waun concludes. “Whether it’s multifamily, retail, or commercial real estate, EV charging is the opportunity you don’t want to miss.”
Hashtags for Optimization:
#EVChargingRevenue #NetOperatingIncome #SmartRealEstate #SustainableInvestment #Chargestar #FutureOfRealEstate #ElectricVehicles #EVChargingStations #RealEstateGrowth #NOI #GrowthTechnology #DIRTRealty #PropertyManagement #CapRate #EVFuture #CommercialRealEstate #RealEstateInvesting #SustainableDevelopment #EnergyEfficiency #ChargingInfrastructure
Comments