Commercial property owners often face a variety of expenses when it comes to maintaining and managing their properties. One of the most significant costs for businesses that own empty commercial properties is the rates payable on these properties. In this article, we will explore what rates are payable on empty commercial property, how they are calculated, and what owners can do to minimize these expenses.
rates payable on empty commercial property, also known as business rates, are taxes that must be paid by the owner of a property that is not in use. These rates are charged by local governments as a way to fund local services such as road maintenance, waste collection, and police services. The rates are calculated based on the rateable value of the property, which is set by the Valuation Office Agency (VOA). The rateable value is an estimate of how much rent the property could fetch on the open market at a certain date.
Owners of empty commercial properties are still required to pay rates on these properties, even if they are not generating any income. This can be a significant financial burden for businesses that are unable to find tenants for their properties. In some cases, owners may be eligible for relief or exemptions from paying rates on empty properties, but these exemptions are not guaranteed and can vary depending on the circumstances.
One way that owners can minimize the rates payable on empty commercial property is by applying for empty property rate relief. This relief allows owners to receive a discount on their rates for a certain period of time, usually 3 or 6 months. However, this relief is not automatic and owners must apply for it through their local council. The criteria for empty property rate relief can vary depending on the location of the property and the specific circumstances of the owner.
Another option for owners of empty commercial properties is to consider leasing the property out on a short-term basis. By finding a temporary tenant, owners can avoid paying rates on the property and generate some income in the meantime. This can be a win-win situation for both parties, as the owner can reduce their expenses while the tenant has a space to operate their business.
Owners of empty commercial properties may also consider negotiating with their local council for a reduction in their rates. While this may not always be successful, councils are often open to discussing payment options with property owners who are struggling to pay their rates. It is important for owners to provide evidence of their financial situation and to explain why they are unable to pay the full amount of rates on the property.
Additionally, owners of empty commercial properties should regularly review the rateable value of their properties to ensure that they are not overpaying on their rates. If the rateable value of a property has decreased, owners can apply to have their rates recalculated to reflect this change. By staying up-to-date on the rateable value of their properties, owners can ensure that they are not paying more than they need to in rates.
In conclusion, rates payable on empty commercial property can be a significant financial burden for property owners. By understanding how these rates are calculated and exploring options for relief and reductions, owners can minimize their expenses and make the most of their properties. Whether through applying for empty property rate relief, leasing the property out temporarily, or negotiating with their local council, owners can take steps to reduce the impact of rates on their bottom line.