When it comes to owning commercial property, there are several costs and expenses to consider. One of these expenses that commercial property owners may face is rates payable on empty commercial property. These rates can have a significant impact on a property owner’s finances, so it’s crucial to understand how they are calculated and what options are available for reducing or avoiding them.
rates payable on empty commercial property, also known as empty property rates or business rates, are taxes that commercial property owners must pay to the local government. These rates are charged on properties that are unoccupied, meaning they do not have any tenants or occupants. The aim of these rates is to encourage property owners to bring their vacant properties back into use and to deter properties from sitting empty for extended periods.
The rates payable on empty commercial property are based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and is used to calculate how much a property owner will need to pay in business rates. The rateable value takes into account factors such as the size, location, and condition of the property.
For empty commercial properties, the rates payable are usually 100% of the normal business rates for the first three months that the property is empty. After the initial three-month period, the rates payable may be reduced to 50% if the property remains empty. However, this reduction is not guaranteed, and property owners should check with their local council to confirm the rates payable on their specific property.
There are several ways in which property owners may be able to reduce or avoid paying rates on empty commercial property. One option is to apply for an exemption or relief from the local council. There are various types of reliefs available, such as the small business rate relief, charitable rate relief, and rural rate relief. Property owners should check with their local council to see if they qualify for any of these reliefs.
Another option for reducing rates on empty commercial property is to actively market the property for rent or sale. If a property owner can demonstrate that they are actively trying to find a tenant or buyer for the property, they may be eligible for an extended period of relief from rates. This can be a great incentive for property owners to take action and try to bring their vacant property back into use.
Property owners may also consider renting out the property on a short-term basis to avoid paying rates on an empty property. By leasing the property for a short period, even if it’s just temporary or on a flexible basis, property owners may be able to avoid or reduce the rates payable on the property.
Ultimately, rates payable on empty commercial property can be a significant expense for property owners, so it’s essential to understand how they are calculated and what options are available for reducing or avoiding them. By actively marketing the property, applying for exemptions or reliefs, and considering short-term leasing options, property owners can take steps to minimize the impact of rates on their finances.
In conclusion, rates payable on empty commercial property can be a costly expense for property owners. However, by understanding how they are calculated and exploring options for reducing or avoiding them, property owners can take steps to manage this expense effectively. Whether it’s applying for exemptions and reliefs, actively marketing the property, or considering short-term leasing options, there are strategies available to help property owners navigate the challenges of rates on empty commercial property.