When it comes to owning commercial property, there are various costs and expenses that landlords and property owners need to consider. One of these expenses is the rates payable on empty commercial property. These rates can sometimes be an overlooked cost that can catch property owners off guard if they are not properly prepared. In this article, we will explore what rates are payable on empty commercial property and how property owners can effectively manage this cost.
rates payable on empty commercial property refer to the business rates that property owners are required to pay if their commercial property is unoccupied. These rates are charged by the local government and are designed to contribute to the local council’s revenue. However, it is important to note that not all empty commercial properties are subject to these rates. There are certain exemptions and reliefs available that property owners can take advantage of to reduce or eliminate these costs.
One of the main factors that determine whether rates are payable on an empty commercial property is the length of time that the property has been unoccupied. In most cases, property owners are granted a period of grace known as the empty property rate relief period. This period typically lasts for three or six months, depending on the local council’s regulations. During this period, property owners are exempt from paying business rates on their empty commercial property.
After the empty property rate relief period expires, property owners are required to pay the full business rates on their unoccupied commercial property. This can be a significant financial burden, especially for property owners who are struggling to find tenants or are in the process of refurbishing or renovating the property. In some cases, property owners may be eligible for additional reliefs or exemptions to help reduce the rates payable on their empty commercial property.
One of the most common ways to reduce the rates payable on empty commercial property is through the Small Business Rate Relief scheme. This scheme is designed to provide financial support to small businesses and property owners by reducing their business rates if the rateable value of their property is below a certain threshold. Property owners can apply for this relief if they meet the eligibility criteria set out by the local council.
Another option for property owners to reduce the rates payable on their empty commercial property is through the Listed Building Relief scheme. This scheme provides relief on business rates for properties that are listed as historic or architecturally significant buildings. Property owners may be eligible for this relief if their property meets the criteria set out by the local council and the national heritage agencies.
Property owners can also explore other options to reduce the rates payable on their empty commercial property, such as negotiating with the local council for a temporary reduction or deferment of the rates. It is important for property owners to communicate with the local council and provide any necessary documentation or evidence to support their request for relief. By being proactive and transparent in their communication, property owners may be able to secure a more favorable outcome.
In addition to exploring relief options, property owners can also take steps to minimize their liability for rates payable on empty commercial property. One effective strategy is to actively market the property and seek new tenants as soon as possible. By showcasing the property’s potential and actively promoting it to potential tenants, property owners can reduce the time that the property remains unoccupied and, therefore, reduce the amount of rates payable.
Overall, rates payable on empty commercial property can be a significant cost for property owners to consider. However, by understanding the various relief options available and taking proactive steps to minimize their liability, property owners can effectively manage this expense and ensure that it does not become a financial burden. By staying informed and exploring all available options, property owners can navigate the complexities of business rates and protect their bottom line.