When it comes to owning commercial property, one of the biggest challenges that landlords face is managing the costs associated with vacant spaces. Business rates on empty property can quickly add up and become a significant financial burden. However, there are ways to minimize or even avoid paying these rates altogether. In this article, we will explore some strategies that landlords can use to navigate the issue of business rates on empty property.
1. Temporary occupation
One of the most effective ways to avoid paying business rates on empty property is to temporarily occupy the space. By finding short-term tenants, landlords can take advantage of exemptions that allow for periods of empty property to be discounted from the overall rates bill. This can be a win-win situation as the landlord generates some income from the temporary tenant while also reducing their business rates liability.
2. Renovation and redevelopment
Another strategy to avoid business rates on empty property is to undertake renovation or redevelopment projects. By actively working to improve the property and make it more attractive to potential tenants, landlords may be eligible for rate relief. This can come in the form of exemptions for properties undergoing major works or discounts for those that are in the process of being refurbished.
3. Applying for exemptions and relief
Landlords should take the time to research and understand the various exemptions and relief schemes that are available to them. For example, there are exemptions for properties that are undergoing structural repairs, as well as relief for certain types of businesses such as charities or community amateur sports clubs. By making sure that they are aware of all the options available to them, landlords can take advantage of any opportunities to reduce their business rates liability.
4. Splitting properties
If a landlord owns multiple properties, they may be able to split the rateable value of their portfolio in order to reduce their overall rates bill. By dividing the properties into separate assessments, landlords can potentially qualify for exemptions or discounts that would not be available if the properties were assessed together. This can be a complex process, so landlords should seek advice from a professional rating surveyor to determine the best course of action.
5. Seeking professional advice
Navigating the world of business rates can be a daunting task, especially for landlords who are unfamiliar with the rules and regulations. In order to ensure that they are not paying more than they need to, landlords should consider seeking advice from a professional rating surveyor. These experts can provide valuable guidance on how to minimize business rates on empty property and help landlords navigate the various relief schemes and exemptions that may be available to them.
In conclusion, avoiding business rates on empty property is a challenge that many landlords face. However, by taking proactive steps such as temporary occupation, renovation and redevelopment, applying for exemptions and relief, splitting properties, and seeking professional advice, landlords can minimize their rates liability and reduce the financial burden of owning vacant commercial space. By being proactive and staying informed about their options, landlords can take control of their business rates and avoid unnecessary costs.