As a landlord or property owner, one of the biggest challenges you might face is dealing with empty commercial properties Not only does an empty property mean lost rental income, but it can also incur additional costs in the form of business rates However, there is a way to alleviate some of the financial burden of having vacant commercial properties – by taking advantage of empty rates relief.
Empty rates relief is a government scheme designed to help property owners mitigate the costs of business rates on empty commercial properties In essence, it provides a temporary exemption or reduction in rates for vacant properties, giving landlords some breathing room while they search for new tenants.
There are two main types of empty rates relief available to property owners – the Empty Property Rates Relief and the Small Business Rates Relief.
Empty Property Rates Relief is available for non-domestic properties that have been empty for a certain period of time The relief period varies depending on the property’s rateable value – properties with a rateable value under £2,900 are exempt from business rates for as long as they remain empty, while properties with a rateable value between £2,900 and £12,000 are granted a 100% exemption for the first three months and a 50% discount thereafter Properties with a rateable value over £12,000 are not eligible for any exemptions.
Small Business Rates Relief, on the other hand, is available to small businesses that occupy only one property with a rateable value under £15,000 If the property becomes empty, the business owner can apply for a 100% relief from business rates for up to three months, after which a 50% discount applies This relief is particularly helpful for small businesses that may struggle to cover the costs of business rates while their property is vacant.
In addition to these two main types of empty rates relief, there are also other specific exemptions and reliefs that property owners can explore For example, properties that are being refurbished or undergoing structural changes may be eligible for a temporary exemption from business rates commercial property empty rates relief. Similarly, charities and community amateur sports clubs may be eligible for relief on their empty properties.
In order to qualify for empty rates relief, property owners must meet certain criteria and follow specific procedures For example, they must notify the local council within a certain period of time after the property becomes vacant, and provide evidence to support their application for relief Failure to comply with these requirements could result in the property owner being liable for the full amount of business rates.
It’s important for property owners to be aware of the available options for empty rates relief and to take advantage of them whenever possible Not only can this help reduce the financial burden of having empty properties, but it can also make the property more attractive to potential tenants Knowing that they won’t have to pay full business rates while the property is vacant may encourage businesses to consider renting the space, ultimately leading to a faster turnaround and increased rental income for the owner.
In conclusion, empty rates relief is a valuable tool for property owners looking to maximize profits and minimize costs on their commercial properties By understanding the options available and complying with the necessary requirements, landlords can ease the financial burden of having empty properties and make their investments more attractive to potential tenants Whether through Empty Property Rates Relief, Small Business Rates Relief, or other specific exemptions, taking advantage of these relief schemes can lead to a more profitable and efficient property management strategy.