Void business rates, also known as empty property business rates, are a significant concern for property owners and businesses alike. These rates are charged on commercial properties that are unoccupied for an extended period of time. In this article, we will delve into what void business rates are, why they exist, how they are calculated, and what property owners can do to mitigate their impact.
Why do void business rates Exist?
Void business rates were introduced as a measure to prevent property owners from leaving commercial properties empty for prolonged periods of time. The government aims to encourage property owners to rent out or sell their vacant properties by imposing a financial penalty on those who keep their properties vacant. By implementing void business rates, the government hopes to stimulate economic activity, create more opportunities for businesses to thrive, and boost revenue for local authorities.
How are void business rates Calculated?
The calculation of void business rates can vary depending on the location and type of property. Generally, however, void business rates are based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and represents the estimated yearly rental value of the property. The void business rates are typically a percentage of the rateable value, with rates varying between different regions and property types.
For properties that have been vacant for an extended period of time, the void business rates can become a substantial financial burden. Property owners may find themselves facing hefty bills for properties that are not generating any income. This can be particularly challenging for small businesses and property owners who are struggling to find tenants or buyers for their vacant properties.
Mitigating the Impact of void business rates
While void business rates may seem like an unavoidable expense for property owners, there are strategies that can help mitigate their impact. One common approach is to seek exemptions or relief from void business rates. Some properties may qualify for exemptions, such as newly built properties that have yet to be occupied or properties undergoing major structural repairs. Property owners should consult with their local council or a professional advisor to determine if they are eligible for any exemptions or relief.
Another option for property owners facing void business rates is to explore alternative uses for their vacant properties. By repurposing the property for a different use, such as converting a commercial space into residential units or coworking spaces, property owners may be able to generate income and avoid void business rates. This can also breathe new life into the property and make it more attractive to potential tenants or buyers.
Property owners can also consider leasing their vacant properties on short-term agreements, such as pop-up shops or temporary office rentals. While this may not be a long-term solution, it can help generate some income and reduce the financial burden of void business rates. Additionally, property owners can explore marketing strategies to attract potential tenants or buyers, such as offering incentives or improving the property’s visibility online.
In conclusion, void business rates are a significant consideration for property owners and businesses with vacant commercial properties. Understanding how void business rates are calculated, why they exist, and what options are available to mitigate their impact is crucial for navigating this complex issue. By exploring exemptions, alternative uses, short-term rentals, and marketing strategies, property owners can take proactive steps to alleviate the financial burden of void business rates and maximize the potential of their vacant properties.