As a landlord, dealing with empty properties can be a major headache. Not only are you missing out on rental income, but you may also be faced with additional costs such as council tax and utility bills. This is where void rates relief comes in.
void rates relief is a scheme put in place by the government to provide a temporary break on business rates for properties that are empty. This relief can help landlords save money during periods when their properties are vacant, making it easier to weather the financial strain of empty units.
So how does void rates relief work, and what do landlords need to know about it? Here’s a closer look at this valuable tool for property owners.
Firstly, it’s important to understand that void rates relief applies to commercial properties rather than residential ones. This means that if you own a shop, office, warehouse, or other non-residential property that is standing empty, you may be eligible for relief on your business rates bill.
The relief works by providing landlords with a break on their business rates bill for a certain period of time after a property becomes empty. The exact rules and regulations surrounding void rates relief can vary depending on the specific circumstances, so it’s important to check with your local council or government website for guidance tailored to your situation.
In general, the relief period usually lasts for three months after a property becomes empty. After this initial period, landlords may be required to pay the full business rates bill unless they can demonstrate that they are taking steps to actively market the property for rent or sale.
One key requirement for void rates relief is that landlords must be able to prove that they are actively trying to re-let or sell the property. This may include providing evidence of marketing efforts, such as advertising the property online, working with a commercial real estate agent, or attending property exhibitions. Landlords who can demonstrate that they are making a genuine effort to find a new tenant or buyer are more likely to qualify for relief.
It’s also important to note that void rates relief is not automatic – landlords must apply for the relief through their local council. The application process can vary depending on the council, but usually involves providing relevant documentation such as proof of ownership, evidence of the property’s vacancy, and details of marketing efforts.
In addition to applying for void rates relief, landlords may also be able to take advantage of other strategies to help reduce the financial impact of empty properties. For example, some councils offer discretionary rate relief for properties that are undergoing major refurbishments or renovations. This can provide landlords with additional savings during periods when their properties are temporarily out of use.
In some cases, landlords may also be eligible for small business rates relief, which can provide a discount on business rates for smaller properties or businesses with a low rateable value. By exploring all available options for relief, landlords can maximize their savings and reduce the financial strain of empty properties.
Overall, void rates relief can be a valuable tool for landlords facing the challenges of empty properties. By providing a temporary break on business rates bills, this relief can help landlords save money and navigate periods of vacancy more easily.
If you’re a landlord with empty commercial properties, it’s worth exploring void rates relief as a way to reduce your financial burden and make the most of your investment. By understanding the rules and requirements of void rates relief, and taking proactive steps to apply for relief, you can benefit from valuable savings and support during challenging times.