When it comes to owning and managing commercial property, one of the biggest headaches for landlords and business owners can be the cost of business rates on empty properties These rates can quickly add up and eat into your profits, especially if you have multiple vacancies or long periods of unoccupancy
However, there are some strategies that you can implement to minimize or even avoid paying business rates on empty properties In this article, we will explore some of the most effective ways to reduce this financial burden.
1 Temporary occupation
One of the simplest ways to avoid paying business rates on empty property is to temporarily occupy the space This could involve renting out the property to a pop-up shop, coworking space, or even a charity By having a temporary occupant in the property, you may become eligible for an exemption from business rates for a certain period of time This can provide much-needed relief while you look for a long-term tenant.
2 Use the property for storage
Another option to consider is using the empty property for storage purposes By storing equipment, inventory, or other items in the space, you may be able to qualify for a partial exemption from business rates This can be a cost-effective solution while you wait for a new tenant to move in.
3 Renovate or refurbish the property
If your property is in need of renovation or refurbishment, consider investing in these improvements to make the space more appealing to potential tenants By actively working on the property, you may be able to apply for an exemption from business rates for a set period of time This can give you some breathing room to attract new tenants and generate rental income.
4 Apply for small business rate relief
If you own a small business and have empty property in your portfolio, you may be eligible for small business rate relief avoiding business rates on empty property. This scheme offers discounts on business rates for properties with a rateable value below a certain threshold By taking advantage of this relief, you can significantly reduce the amount you owe on your empty properties.
5 Seek advice from a professional
Navigating the complex world of business rates can be challenging, especially if you are not familiar with the rules and regulations To ensure that you are taking advantage of all available exemptions and reliefs, consider seeking advice from a professional, such as a property consultant or tax specialist They can help you identify opportunities to minimize your business rates liability and save money in the long run.
6 Consider temporary use class change
In some cases, changing the temporary use class of your property can exempt you from paying business rates during the transition period For example, if you are converting a commercial property into residential units, you may be eligible for a temporary exemption from business rates This can provide substantial savings while you undergo the necessary changes to the property.
7 Challenge the rateable value
If you believe that the rateable value of your property is inaccurate, you have the right to challenge it with the Valuation Office Agency By submitting evidence to support your claim, you may be able to reduce your business rates bill and save money on your empty property It is important to act quickly and provide detailed information to support your case.
In conclusion, there are several strategies that landlords and business owners can use to avoid paying business rates on empty property By taking advantage of exemptions, reliefs, and temporary solutions, you can minimize the financial burden of owning vacant commercial space Remember to seek advice from professionals and explore all available options to find the most cost-effective solution for your situation With careful planning and proactive management, you can reduce your business rates liability and maximize your profits in the long term.