Empty rates, also known as empty property rates, are a significant financial burden for property owners and landlords. This tax is levied on properties that are empty for an extended period of time, and the costs can quickly add up. However, there are several ways to mitigate empty rates and minimize the impact on your bottom line.
1. Temporary occupation
One of the most effective ways to mitigate empty rates is to temporarily occupy the property. Even if you have no immediate plans to rent out the space, consider using it for short-term purposes such as hosting pop-up events, art exhibitions, or temporary office space for small businesses. By putting the property to use, even for a short period of time, you can qualify for exemptions or discounts on empty rates.
2. Property guardianship
Another option to mitigate empty rates is to appoint property guardians to live in the property temporarily. Property guardians are individuals or companies that occupy empty properties on a temporary basis to prevent vandalism and squatting. By having property guardians in place, you can qualify for exemptions on empty rates, as the property is no longer considered vacant.
3. Renovation or redevelopment
If the reason the property is empty is due to renovations or redevelopment plans, you may qualify for exemptions on empty rates. By demonstrating that the property is undergoing significant renovations or will be redeveloped in the near future, you may be able to reduce or eliminate the empty rates burden.
4. Charity or community use
In some cases, properties used for charitable or community purposes may be eligible for relief on empty rates. If you are unable to find a tenant for your property, consider partnering with a local charity or community group to use the space for beneficial purposes. By demonstrating that the property is being used for charitable or community use, you may be able to qualify for exemptions on empty rates.
5. Appeal the rateable value
If you believe that the rateable value of your property is incorrect, you can appeal to the Valuation Office Agency (VOA) to have it reassessed. By providing evidence of factors that may have affected the value of the property, such as location, condition, or market trends, you may be able to reduce the rateable value and subsequently lower the empty rates payable.
6. Lease the property
One of the most straightforward ways to mitigate empty rates is to find a tenant for the property. Even if you are having difficulty finding a long-term tenant, consider leasing the property on a short-term or temporary basis to generate rental income and avoid empty rates. You can also explore alternative leasing options such as subletting or shared office spaces to make the property more attractive to potential tenants.
7. Vacant property insurance
Vacant property insurance is a specialized insurance policy that provides coverage for empty properties. By investing in vacant property insurance, you can protect your property against risks such as vandalism, theft, and damage, while also potentially reducing the empty rates payable. Some insurance providers offer additional services such as property management and maintenance, which can help you keep your property in good condition and minimize empty rates liability.
In conclusion, empty rates mitigation is essential for property owners and landlords to minimize the financial impact of vacant properties. By exploring the various options available, such as temporary occupation, property guardianship, renovation or redevelopment, charity or community use, appealing the rateable value, leasing the property, and vacant property insurance, you can effectively reduce or eliminate empty rates liability. With careful planning and proactive measures, you can mitigate empty rates and protect your bottom line.