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The demand for electric vehicle charging points (EV charging points) in commercial properties will continue to increase over the coming years.
The use of electric and hybrid vehicles is escalating rapidly further to the government's proposal to ban the production of petrol and diesel cars by 2030.
Both landlords and tenants looking to install these devices at their sites must consider several essential factors before doing so.
Landlords should firstly consider their relationship with a charging point operator.
A landlord can either enter into a lease or a commercial agreement with an operator to install, connect, operate, and maintain EV charging points.
Should a landlord be responsible for the cost of installation
The cost of operating EV charging points may be recoverable by a landlord through a service charge provision in the lease, although it is not expected that a landlord would be able to recover the costs of installing charging points through a service charge as the capital expense is high.
A landlord should check beforehand whether there is a service charge cap in the lease that would prevent them from recovering the costs of maintaining or installing an EV charging point.
Landlords may also want to check if they are eligible for government incentives, such as a grant, to help fund any initial costs or costs of upgrading devices as technology advances.
A landlord should also assess how they will charge for the day-to-day use of charging stations.
Does a system need to be established so that users can pay through their phone or through a card payment, and will the charging points be used purely by commercial tenants or be available to the public?
A landlord may consider deploying and managing charging stations themselves to maintain control and avoid any issues concerning reinstatement at the end of a tenant's lease, as a tenant may be entitled to remove the devices from the property.
In particular, a landlord will need to consider the extent of their responsibility at their sites about the health and safety risks of installing and using charging points.
What should a tenant consider before installing EV charging stations?
A tenant must consider an EV charging point's impact on their existing lease, as this may affect future rent reviews.
A tenant may have to obtain consent from their landlord and enter into a licence for alterations to carry out the works.
This means the tenant will be responsible for the works, installation, and negotiations with an operator.
The party responsible for the maintenance and repair of the charging points should be determined, particularly if this lies with the tenant under their lease's repair and insurance obligations.
Considerations for both parties
Both landlords and tenants must consider whether planning permission is required ahead of installing EV charging points.
Equally, obtaining consent from a superior landlord or where there is a mortgage on the property, obtaining consent from the bank in favour of the legal charge should be established beforehand.
Another important consideration is ensuring the necessary legal requirements are met.
Landlords and tenants should comply with the government regulations introduced on 30th June 2022 concerning EV charging points to avoid any sanctions.
Installing EV charging infrastructures allows properties to be' fit for the future' and, therefore, more desirable and sustainable.