Business rates are a necessary expense for any property owner, but when a property sits empty, those rates can become a burden. Whether your property is vacant due to market conditions, renovations, or any other reason, there are strategies you can use to avoid paying business rates on empty property. In this article, we will discuss five effective ways to minimize the costs associated with vacant properties.
1. Occupying the Property Temporarily
One of the simplest ways to avoid business rates on an empty property is to occupy it temporarily. By leasing the property on a short-term basis to a pop-up shop, event space, or even offering it for temporary storage, you can trigger exemptions or discounts on business rates. In many jurisdictions, properties that are occupied for only a short period of time are eligible for relief from business rates, or may qualify for reduced rates. By actively seeking out temporary tenants, you can generate some income while simultaneously avoiding the full burden of business rates.
2. Utilizing Property Guardians
Another effective strategy for avoiding business rates on empty property is to utilize property guardians. Property guardians are individuals or companies that occupy and secure vacant properties in exchange for reduced rent or free accommodations. By having property guardians live in your empty property, you can meet the requirement of occupation that exempts properties from business rates. Additionally, property guardians can provide security and maintenance services, helping to protect your property from vandalism and deterioration.
3. Applying for Empty Property Relief
Many jurisdictions offer empty property relief as a way to incentivize property owners to bring vacant properties back into use. Empty property relief typically provides a discount or exemption on business rates for a specified period of time, such as 3 or 6 months. To qualify for empty property relief, property owners must demonstrate that the property is genuinely unused and not available for occupation. By applying for empty property relief, you can reduce or eliminate the financial burden of business rates while you work to bring your property back into use.
4. Renovating or Repurposing the Property
If your property is vacant due to renovations or refurbishments, you may be eligible for exemptions or discounts on business rates. Many jurisdictions offer relief for properties that are undergoing substantial works, as these properties are not considered fit for occupation. By actively renovating or repurposing your property, you can qualify for relief from business rates during the construction period. Additionally, once the renovations are complete, you may benefit from increased property value and rental income, offsetting the costs of business rates in the long term.
5. Appealing the Rateable Value
If you believe that the rateable value of your property is inaccurate or unfair, you have the right to appeal the valuation to the local council. By providing evidence of similar properties in the area or demonstrating changes in market conditions, you may be able to secure a reduction in the rateable value of your property. A lower rateable value will result in lower business rates, reducing the financial burden on your empty property. It is important to work with a professional valuer or surveyor to prepare a strong case for appeal and ensure the best possible outcome.
In conclusion, there are several strategies that property owners can use to avoid paying business rates on empty property. By occupying the property temporarily, utilizing property guardians, applying for empty property relief, renovating or repurposing the property, and appealing the rateable value, property owners can minimize the costs associated with vacant properties. By exploring these options and taking proactive steps, you can effectively manage the financial impact of empty properties and work towards bringing your property back into productive use.