Business rates can be a significant expense for property owners, especially when their property sits empty. Whether you own a commercial property or a residential property that you are unable to rent out, it’s essential to explore ways to avoid paying business rates on empty property. In this article, we will discuss some strategies that property owners can use to reduce or even eliminate these rates.
1. Empty Property Relief
One of the most common ways to avoid paying business rates on empty property is by applying for Empty Property Relief. This relief is available to property owners who have commercial properties that have been unoccupied for a certain period. In most cases, you would need to have the property unoccupied for at least three months before you can apply for Empty Property Relief.
It’s essential to check with your local council to see if you qualify for this relief and what steps you need to take to apply. Keep in mind that each council may have different rules and regulations regarding Empty Property Relief, so it’s crucial to do your research and be proactive in seeking this relief.
2. Short-term Leases
If you are unable to rent out your property for an extended period, consider offering short-term leases to tenants. By doing so, your property will be considered occupied, and you may be eligible for other types of relief or exemptions from business rates. While short-term leases may not provide as much stability as long-term leases, they can help you avoid paying business rates on an empty property.
3. Job Creation
Another way to avoid business rates on empty property is by creating jobs on the premises. Some councils offer relief or exemptions to property owners who can demonstrate that the property is being used to create employment opportunities. By creating jobs on your property, you may be able to take advantage of these incentives and reduce your business rates.
4. Property Development
If you have an empty property that is in need of repairs or redevelopment, consider investing in the property to bring it up to standard. Many councils offer relief to property owners who are renovating or redeveloping their properties to improve the local area. By investing in your property, you may be able to avoid paying business rates on the empty property while also increasing its value for future rental or sale.
5. Negotiate with the Council
If you are struggling to avoid paying business rates on an empty property, consider reaching out to your local council to discuss your situation. Some councils may be willing to work with property owners to find a suitable solution, such as a temporary reduction in rates or a payment plan. By being proactive and open with the council, you may be able to find a solution that works for both parties.
6. Utilize Empty Property Management Services
There are companies that specialize in managing empty properties on behalf of property owners. These services can help you minimize the impact of business rates on your empty property by actively marketing the property, maintaining it, and seeking out potential tenants. While there may be a cost associated with using these services, the potential savings in business rates may outweigh the fees.
In conclusion, avoiding business rates on empty property is possible with careful planning and proactive measures. By exploring options such as Empty Property Relief, short-term leases, job creation, property development, negotiating with the council, and utilizing empty property management services, property owners can reduce or eliminate the financial burden of business rates on their empty properties. Remember to research your options, stay informed about local regulations, and seek professional advice if needed to make the most of these strategies and keep your empty property costs to a minimum.