As a property owner, there are many financial responsibilities that come with owning commercial real estate. One of the most significant expenses that owners must contend with is the rates payable on empty commercial property. These rates can often be a source of confusion and frustration for owners, who may not fully understand why they are being charged, or how the rates are calculated.
In this article, we will take a closer look at rates payable on empty commercial property, including what they are, how they are determined, and what owners can do to minimize their impact on their bottom line.
What are rates payable on empty commercial property?
rates payable on empty commercial property are a form of local taxation that property owners must pay to their local council. These rates are levied on commercial properties that are vacant or unoccupied, and are intended to encourage property owners to bring their properties back into use.
The rates payable on empty commercial property are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency (VOA). The rateable value is an estimate of the open market rental value of the property at a specific point in time, and is used by local councils to calculate the rates that property owners must pay.
How are rates payable on empty commercial property determined?
rates payable on empty commercial property are calculated based on the rateable value of the property, as well as the specific rules and regulations set out by the local council. In most cases, the rateable value is multiplied by the Uniform Business Rate (UBR), which is set annually by the government, to determine the rates payable on the property.
In some cases, property owners may be eligible for certain exemptions or discounts on their rates payable on empty commercial property. For example, if a property is undergoing major repair works or is being used for charitable purposes, the owner may be entitled to a reduction in their rates bill. However, it is important for property owners to check with their local council to determine if they qualify for any exemptions or discounts.
What can property owners do to minimize rates payable on empty commercial property?
Property owners who are facing high rates payable on empty commercial property may be wondering what they can do to minimize their financial burden. One option is to bring the property back into use as quickly as possible, thereby reducing the amount of time that it is considered vacant and unoccupied. This can be accomplished by finding a new tenant for the property, or by using the property for another purpose, such as storage or office space.
Another option for property owners looking to minimize rates payable on empty commercial property is to invest in the property and make improvements that increase its rateable value. By increasing the rateable value of the property, owners may be able to reduce their rates bill, as the rates payable are calculated based on the rateable value of the property.
Additionally, property owners may also want to consider appealing the rateable value of their property if they believe it has been assessed incorrectly. Property owners can submit a formal appeal to the VOA, who will review the rateable value of the property and make any necessary adjustments. If the rateable value is reduced, property owners may see a corresponding reduction in their rates payable on empty commercial property.
In conclusion, rates payable on empty commercial property can be a significant financial burden for property owners. By understanding how these rates are determined and what options are available for minimizing them, owners can better manage their financial obligations and make informed decisions about their properties. Property owners should work closely with their local council and seek professional advice if necessary to ensure that they are paying the correct amount of rates on their empty commercial property.