empty property rates, commonly known as business rates on empty properties, are a significant financial burden for property owners and investors. These rates are charged by local authorities on commercial properties that are unoccupied for an extended period of time. The goal of these rates is to encourage property owners to bring vacant properties back into use and prevent properties from sitting empty for long periods. In this article, we will delve into the details of empty property rates, how they are calculated, the exemptions available, and ways property owners can mitigate their impact.
empty property rates are a complex issue that can have a substantial impact on a property owner’s financial situation. The rates are calculated based on the rateable value of the property and the multiplier set by the local authorities. The rateable value is determined by the Valuation Office Agency (VOA) and represents the rental value of the property. The multiplier is set by the government and is used to calculate the annual business rates payable on the property.
Property owners are liable to pay empty property rates when their commercial property has been unoccupied for a certain period. The standard period is usually three months, but this can vary depending on the local authority. Once the property has been empty for the specified period, the owner must begin paying empty property rates. These rates are typically set at 100% of the full business rates that would be payable if the property were occupied.
However, there are some exemptions and reliefs available to property owners to help reduce the financial burden of empty property rates. One of the most common exemptions is the six-month exemption for newly built properties. This exemption allows property owners a six-month period from the date the property was completed to find a tenant before empty property rates are charged.
Another common exemption is for properties that are undergoing major renovation or structural repairs. Property owners can apply for a exemption from empty property rates for up to 12 months while the property is being renovated. This can provide some relief to property owners who are investing in improving their properties but are not yet able to generate rental income.
In addition to exemptions, there are also reliefs available for certain types of properties. For example, charities and community amateur sports clubs are entitled to an 80% discount on empty property rates for properties that are used for charitable purposes. This can provide significant savings for these organizations and encourage them to continue operating in their community.
Despite the exemptions and reliefs available, empty property rates can still be a significant financial burden for property owners. In some cases, the rates can be a major factor in a property owner’s decision to keep a property empty rather than renting it out. This can have a detrimental impact on local communities, as vacant properties can attract vandalism, squatters, and other negative consequences.
Property owners who are struggling to pay empty property rates have a few options available to them. One option is to explore the possibility of appealing the rateable value of the property. If a property owner believes that the rateable value is incorrect, they can submit an appeal to the Valuation Office Agency to have it reassessed. If the appeal is successful, the rateable value will be adjusted, and the empty property rates payable will be reduced accordingly.
Another option for property owners is to explore alternative uses for the property. Rather than leaving the property empty and incurring empty property rates, owners can consider renting the property out for temporary uses such as pop-up shops, events, or storage space. This can generate some income from the property and help offset the costs of empty property rates.
empty property rates are a complex issue that can have a significant impact on property owners and investors. Understanding how these rates are calculated, the exemptions available, and ways to mitigate their impact is crucial for property owners who are facing financial difficulties due to empty property rates. By exploring all available options and seeking professional advice, property owners can navigate the challenges of empty property rates and make informed decisions about how to manage their vacant properties.