When it comes to owning or leasing commercial property, there are many expenses to consider. One cost that often catches property owners off guard is the rates payable on empty commercial property. In this article, we will delve into what these rates are, why they exist, and how property owners can potentially reduce or eliminate them.
rates payable on empty commercial property, also known as business rates, are a type of tax that property owners must pay to the local government. These rates are based on the rateable value of the property, which is determined by the government’s Valuation Office Agency. The purpose of business rates is to help fund local services such as schools, roads, and healthcare facilities.
So why do property owners have to pay rates on empty commercial properties? The reasoning behind this is to encourage property owners to keep their properties occupied and in use. By charging rates on empty properties, the government aims to prevent property owners from leaving their properties vacant for extended periods of time, potentially causing blight in the area.
It is important for property owners to understand that they are still liable to pay rates on empty commercial properties, even if the property is not generating any income. This can be a significant financial burden, especially for property owners who are struggling to find tenants or who have had tenants vacate unexpectedly.
However, there are some options available to property owners who are struggling to pay rates on empty commercial properties. One option is to apply for empty property relief, which can provide temporary relief from paying rates on empty properties. This relief is often granted for a set period of time, after which property owners will need to start paying rates again.
Another option is to consider leasing the property on a short-term basis to a pop-up shop or temporary tenant. By doing so, property owners can potentially generate some income from the property and reduce the amount of rates they need to pay. This can be a good short-term solution for property owners who are struggling to find long-term tenants.
Property owners can also consider appealing the rateable value of their property if they believe it has been overvalued. By doing so, property owners may be able to reduce the amount of rates they are required to pay. It is important to note that this process can be complex and time-consuming, so property owners may want to seek professional advice before proceeding with an appeal.
In some cases, property owners may be able to apply for exemptions from paying rates on empty commercial properties. For example, certain types of industrial properties may be exempt from paying rates if they are not in use. Property owners should check with their local government to see if they qualify for any exemptions.
Overall, rates payable on empty commercial properties can be a significant expense for property owners. However, by understanding the reasons behind these rates and exploring options for reducing or eliminating them, property owners can better manage this financial burden. Whether through applying for relief, leasing the property on a short-term basis, appealing the rateable value, or seeking exemptions, property owners have options for addressing rates payable on empty commercial properties.