rates payable on empty commercial property
Empty commercial properties can be a headache for property owners, especially when it comes to paying rates on properties that are not generating any income. Rates payable on empty commercial property can vary depending on the location and local government regulations. In this article, we will explore the key factors that determine rates payable on empty commercial property and offer some tips on how property owners can manage this financial burden.
First and foremost, it is important to understand what rates actually are. Rates are a form of local taxation that is levied by local authorities to fund services such as rubbish collection, road maintenance, and street lighting. The amount of rates payable on a property is usually calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA).
When a commercial property is empty, property owners are still required to pay rates on the property. This can be a significant financial burden, especially for property owners who are struggling to find tenants or who are going through a period of low occupancy. In some cases, rates payable on empty commercial property can be as high as 100% of the normal rates bill.
There are, however, some ways in which property owners can reduce the rates payable on empty commercial property. One option is to apply for an exemption or relief from rates. Some local authorities offer empty property relief, which allows property owners to reduce the amount of rates payable on empty properties for a certain period of time. This can provide much-needed financial relief to property owners who are struggling to cover the costs of an empty property.
Another option is to consider leasing the property on a short-term basis. By leasing the property to a temporary tenant, property owners can generate some income from the property and reduce the rates payable on the property. This can be a win-win situation for both parties, as the temporary tenant will have access to a property for a short period of time, while the property owner can reduce their financial burden.
Property owners can also consider appealing the rateable value of the property. If property owners believe that the rateable value of their property is incorrect, they can challenge this valuation and potentially reduce the amount of rates payable on the property. This can be a complex process, so property owners may want to seek professional advice from a surveyor or valuer when considering this option.
It is also worth noting that some local authorities offer discounts on rates payable on empty commercial property for certain types of properties. For example, properties that are being refurbished or undergoing major structural changes may be eligible for a discount on rates payable. Property owners should check with their local authority to see if they qualify for any discounts or exemptions.
In some cases, property owners may decide to demolish the property rather than continue paying rates on an empty building. This can be a drastic step, but it may be necessary if the property is no longer viable or if the costs of maintaining the property are too high. Property owners should be aware that they may still be liable for rates payable on the property until it is officially removed from the rating list.
Overall, rates payable on empty commercial property can be a significant financial burden for property owners. However, there are ways in which property owners can reduce the amount of rates payable on empty properties and manage this financial burden effectively. By exploring options such as exemptions, reliefs, temporary leasing, appeals, and discounts, property owners can find ways to lighten the financial load of rates payable on empty commercial property.