Empty commercial properties can be a bit of a headache for property owners. Not only are they not generating any income, but they are also subject to business rates. However, with the right approach, these rates on empty commercial property can be turned into an opportunity for property owners to maximize their potential.
Business rates are a tax that property owners must pay to the local authority. The rates are calculated based on the rateable value of the property, which is determined by the Valuation Office Agency. If a commercial property is empty, the owner is still required to pay 100% of the business rates for the first three months. After three months, the owner is usually required to pay 50% of the rates, unless the property qualifies for exemption.
The rates on empty commercial property often leave property owners feeling like they are paying for nothing. However, there are a few ways that property owners can turn this seemingly negative situation into a positive one.
Firstly, property owners should consider the potential of their empty commercial property. Is there a market for the property in its current state, or does it need some refurbishment or rebranding? By assessing the potential of the property, owners can make informed decisions about how to move forward.
One option for property owners is to consider leasing the property to a short-term tenant. Short-term leases can help to cover some of the business rates on the property while also generating some income. Additionally, short-term leases could attract businesses that are looking for a temporary space, such as pop-up shops or seasonal businesses.
Another option for property owners is to consider using the empty commercial property for alternative purposes. For example, the property could be rented out for events such as weddings, conferences, or exhibitions. These events can bring in additional income while also showcasing the potential of the property to potential long-term tenants.
Property owners could also consider turning the empty commercial property into a shared workspace. With the rise of remote working and the gig economy, shared workspaces are becoming increasingly popular. By transforming the empty property into a shared workspace, property owners can attract a new demographic of tenants and generate steady income.
Property owners should also explore the possibility of applying for business rates relief. Depending on the circumstances, property owners may qualify for a reduction or exemption from business rates. For example, properties that are under renovation or in a designated enterprise zone may be eligible for relief. Property owners should consult with their local authority to determine if they qualify for any relief.
Additionally, property owners should consider marketing their empty commercial property effectively. By showcasing the property’s potential and highlighting any unique features, owners can attract potential tenants and increase their chances of finding a suitable tenant quickly. Property owners should utilize online platforms, social media, and real estate agents to reach a wider audience.
Another option for property owners is to consider investing in the property to increase its value. By making improvements to the property, owners can attract higher-paying tenants and increase the property’s rateable value. Property owners should consider upgrades such as new fixtures and fittings, energy-efficient features, or modernizing the interior to make the property more desirable.
In conclusion, rates on empty commercial property do not have to be a burden for property owners. By assessing the potential of the property, exploring alternative uses, applying for relief, marketing effectively, and investing in improvements, property owners can turn the empty property into a valuable asset. With the right approach, property owners can maximize the potential of rates on empty commercial property and turn a negative situation into a positive one.