When it comes to owning and managing commercial property, one of the biggest challenges can be dealing with business rates on empty properties Business rates are taxes that commercial property owners must pay to local authorities, regardless of whether their property is occupied or not This can create a significant financial burden, especially for small businesses or property owners who are struggling to find tenants However, there are some strategies that can help you reduce or even eliminate your business rates liability on empty properties Here are some tips to help you avoid business rates on empty property.
1 Utilize Empty Property Relief
One of the most common ways to reduce your business rates liability on empty property is to apply for Empty Property Relief This relief allows you to claim a 100% discount on your business rates for a certain period of time, typically three or six months, depending on the local authority To qualify for Empty Property Relief, your property must be completely empty and unfurnished, and you must have made a genuine effort to rent it out Be sure to check with your local authority to see if you are eligible for Empty Property Relief and to find out how to apply.
2 Consider Short-Term Leases
If you are struggling to find a long-term tenant for your property, consider offering it on a short-term lease basis By leasing your property for a shorter period of time, you can avoid having to pay business rates on an empty property Short-term leases can also be a good option if you are unsure about the future use of your property or if you are planning to renovate or redevelop it in the near future.
3 Explore Property Guardianship
Property guardianship is a popular option for owners of empty commercial property who are looking to reduce their business rates liability while also protecting their property from vandalism and squatters Property guardians are individuals or companies who live in empty properties in exchange for paying a lower rent avoiding business rates on empty property. By having property guardians occupy your empty property, you may be able to qualify for a 100% discount on your business rates, as long as the property is being used by the guardians as their main residence This can be a win-win situation for both property owners and guardians, as it provides affordable housing for the guardians while also helping property owners reduce their costs.
4 Consider Temporary Uses
Another way to avoid paying business rates on empty property is to explore temporary uses for the space This could include renting out the property for events, pop-up shops, or coworking spaces By temporarily using the space in this way, you may be able to qualify for exemptions or discounts on your business rates Temporary uses can also help generate some income while you continue to search for a long-term tenant for your property.
5 Appeal Your Business Rates
If you believe that your business rates assessment is unfair or inaccurate, you have the right to appeal You can challenge the rateable value of your property or argue that you should be entitled to a discount or relief It is important to gather evidence to support your appeal, such as rental comparables or details of any improvements or renovations that may have impacted the value of your property Be sure to follow the appeals process outlined by your local authority and seek professional advice if needed.
In conclusion, business rates on empty property can be a significant financial burden for commercial property owners However, by utilizing strategies such as Empty Property Relief, short-term leasing, property guardianship, temporary uses, and appealing your business rates assessment, you can reduce or even eliminate your business rates liability Be sure to explore all of your options and work with your local authority to find the best solution for your empty property By taking proactive steps to avoid business rates on empty property, you can save money and protect your investment in the long run.