Navigating Empty Rates And How They Impact Property Owners

empty rates, also known as void rates, are an essential aspect of property ownership that all landlords and property owners must navigate. As the term suggests, empty rates refer to the business rates that must be paid on empty properties. This can be a significant financial burden for property owners, especially during times of economic uncertainty or when properties are vacant for extended periods. In this article, we will explore what empty rates are, how they are calculated, and offer some tips on how property owners can minimize their impact.

empty rates are essentially a form of tax that is charged on commercial properties that are unoccupied. They are intended to discourage property owners from leaving their buildings empty for extended periods, as vacant properties can be seen as a blight on the local community and can attract anti-social behavior. empty rates are a way of incentivizing property owners to bring their properties back into use or to rent them out to tenants.

Empty rates are calculated based on the rateable value of the property. The rateable value is set by the Valuation Office Agency (VOA) and is used to determine how much business rates a property owner will have to pay. For properties that have been empty for three months or more, the property owner will be required to pay the full empty rates, which are set at 100% of the normal business rates. This can be a significant financial burden for property owners, especially if they have multiple empty properties in their portfolio.

There are, however, ways in which property owners can reduce the impact of empty rates on their finances. One option is to apply for an exemption or relief from empty rates. Certain types of properties may be eligible for an exemption from empty rates, such as newly built properties that have not yet been occupied or properties that are undergoing major structural repairs. Property owners should check with their local council to see if they qualify for any exemptions or relief schemes.

Property owners can also minimize the impact of empty rates by actively marketing their properties for rent or sale. By finding a tenant or a buyer for their property, property owners can avoid having to pay empty rates altogether. Property owners should work with estate agents or property management companies to help market their properties and attract potential tenants or buyers. It may also be worth considering offering incentives such as rent-free periods or discounted rates to attract tenants.

Another option for property owners looking to reduce the impact of empty rates is to consider temporary uses for their properties. Properties that are empty for extended periods can be put to temporary use, such as hosting pop-up shops, events, or art exhibitions. By using the property in this way, property owners can generate some income to offset the costs of empty rates while also bringing some life back to their building and the surrounding area.

Property owners should also be aware of the implications of the 2020 Coronavirus pandemic on empty rates. In response to the pandemic, the UK government introduced a temporary relief scheme for empty properties. Under this scheme, properties that have been empty due to the pandemic are eligible for a 100% exemption from empty rates for the 2020-2021 financial year. Property owners should check with their local council to see if they qualify for this relief and to understand how it may impact their finances.

In conclusion, empty rates are an important aspect of property ownership that all landlords and property owners must navigate. By understanding how empty rates are calculated and exploring ways to minimize their impact, property owners can effectively manage this financial burden. Whether it’s applying for exemptions, actively marketing properties, or exploring temporary uses, there are ways for property owners to reduce the impact of empty rates on their finances. With careful planning and proactive management, property owners can navigate empty rates successfully and protect their investment in their properties.