When it comes to owning commercial property, there are many costs that need to be considered One of the most significant costs that property owners often overlook is business rates on empty commercial property
Business rates are a tax that is levied on most non-domestic properties, including commercial properties The rates are calculated based on the rateable value of the property and are used to fund local services such as schools, police, and infrastructure
In the past, owners of empty commercial properties were given a grace period where they did not have to pay business rates However, changes in legislation in recent years mean that owners of empty commercial properties now have to pay business rates from day one of the property becoming vacant
This has understandably caused concern among property owners, especially those who may be struggling to find tenants for their properties The thought of having to pay business rates on an empty property can be daunting, especially if the property has been vacant for an extended period of time
So, what can property owners do to mitigate the cost of business rates on empty commercial property? One option is to apply for Empty Property Relief This relief is available for properties that have been empty for a certain period of time, usually three months or more
Property owners can apply for a discount of up to 100% on their business rates for a set period of time, usually between 3 and 6 months This can provide some much-needed relief for property owners who are struggling to find tenants for their properties
However, it’s worth noting that not all empty properties are eligible for Empty Property Relief For example, properties that are under construction or undergoing major renovations may not qualify for the relief business rates empty commercial property. It’s important for property owners to check with their local council to see if their property is eligible for Empty Property Relief
Another option for property owners is to consider leasing out their empty commercial property on a short-term basis This can help to generate some income and offset the cost of business rates while the property is vacant Short-term leases can be a win-win for both property owners and tenants, as tenants are often looking for flexible leasing options
Property owners can also consider other creative solutions to reduce the impact of business rates on empty commercial property For example, they could use the empty property for charitable or community purposes In some cases, properties used for charitable purposes may be eligible for relief on their business rates
Overall, it’s important for property owners to be aware of the costs associated with owning empty commercial property, including business rates By exploring options such as Empty Property Relief, short-term leasing, and charitable use, property owners can mitigate the financial burden of business rates on empty commercial property
In conclusion, business rates on empty commercial property can be a significant cost for property owners However, there are options available to help reduce this burden, such as Empty Property Relief, short-term leasing, and charitable use It’s important for property owners to explore these options and work with their local council to find the best solution for their empty commercial property.