When it comes to owning commercial property, one of the biggest expenses that landlords face is business rates. These rates are charged on most non-domestic properties, including offices, shops, and warehouses. However, landlords can face even more financial strain if their property sits empty for an extended period of time, as they will still be required to pay business rates on the vacant space. In this article, we will discuss some strategies that landlords can use to avoid paying business rates on empty property.
One of the most effective ways to avoid business rates on empty property is by applying for an exemption or relief. In certain circumstances, the government offers relief schemes that can significantly reduce or eliminate the amount of business rates that a landlord must pay on empty properties. For example:
1. Small business rate relief: If the property has a rateable value of less than £15,000, landlords may be eligible for small business rate relief. This scheme allows qualifying businesses to pay little or no business rates on empty properties.
2. Charitable rate relief: If the property is being used for charitable purposes, landlords may be able to claim charitable rate relief. This can be a great way to reduce the amount of business rates owed on empty property.
3. Hardship relief: In cases of financial hardship, landlords may be able to claim hardship relief, which can provide temporary relief from paying business rates on empty properties.
It’s important for landlords to carefully review the eligibility criteria for these relief schemes and to submit a formal application to the local council if they believe they qualify. By taking advantage of these relief schemes, landlords can significantly reduce the financial burden of paying business rates on empty property.
Another strategy for avoiding business rates on empty property is by actively marketing the space for rent or sale. Landlords should make an effort to advertise the property through various channels, such as online listings, social media, and local real estate agencies. By proactively seeking tenants or buyers for the property, landlords can demonstrate to the local council that they are actively trying to fill the space, which may make them eligible for exemptions or relief on business rates.
In addition to marketing the property, landlords should also consider making improvements or renovations to make the property more attractive to potential tenants. By investing in upgrades such as new flooring, fresh paint, or updated fixtures, landlords can increase the likelihood of finding a tenant quickly. In some cases, local councils may offer exemptions or relief on business rates for properties that are undergoing renovations or improvements.
Furthermore, landlords should consider entering into short-term lease agreements with pop-up shops, temporary tenants, or artists looking for studio space. By allowing these temporary occupants to use the property on a short-term basis, landlords can generate rental income and demonstrate to the local council that the property is being used actively. This can help landlords qualify for relief or exemptions on business rates for the period that the property is occupied.
Finally, landlords should be aware of the rules and regulations surrounding business rates on empty property. In some cases, landlords may be able to claim exemptions or relief for specific reasons, such as properties that are undergoing repairs or properties that are on the market for sale or rent. By familiarizing themselves with the guidelines set forth by the local council, landlords can make informed decisions about how to avoid paying business rates on empty property.
In conclusion, avoiding business rates on empty property can be a challenging task for landlords, but it is not impossible. By taking advantage of relief schemes, actively marketing the property, making improvements, and entering into short-term lease agreements, landlords can reduce or eliminate the financial burden of paying business rates on vacant properties. By staying informed and following the regulations set forth by the local council, landlords can successfully navigate the process of avoiding business rates on empty property.