As a landlord, one of the biggest challenges you may face is dealing with void periods in your rental property. These are periods when your property is vacant and not generating any rental income. During these times, you are still responsible for paying various property expenses, including business rates. However, there is a way to alleviate some of this financial burden through void rates relief.
void rates relief, also known as empty property relief, is a scheme offered by local councils to reduce the business rates payable on empty commercial properties. This relief is designed to help landlords during periods when their properties are not being used or generating income.
Many landlords may not be aware of void rates relief or how it works. To help shed some light on this topic, let’s take a closer look at void rates relief and what landlords need to know about it.
First and foremost, it’s important to understand that void rates relief is not automatically applied to empty properties. Landlords must apply for this relief through their local council by submitting a formal application. The council will then assess the property and determine whether it qualifies for void rates relief.
In general, void rates relief is only available for a limited period of time. The length of time varies depending on the local council and the type of property in question. Some councils offer relief for up to three or six months, while others may provide relief for longer periods.
It’s also worth noting that void rates relief is only available for commercial properties, not residential properties. If you have a residential property that is vacant, you will still be responsible for paying council tax, even if you are not generating any rental income.
When applying for void rates relief, landlords will need to provide details about the property, including its size, location, and reason for vacancy. The council may also request additional documentation, such as proof of ownership or evidence of efforts to re-let the property.
One key requirement for void rates relief is that the property must be genuinely empty and not in use for any business purposes. If you are using the property for storage or other business activities, you may not be eligible for void rates relief.
It’s also important to note that void rates relief is not a permanent solution for dealing with empty properties. Once the relief period expires, landlords will be required to pay the full business rates on the property. Therefore, it’s essential to have a plan in place for re-letting the property or finding a new use for it before the relief period ends.
In some cases, landlords may be able to apply for an extension of void rates relief if they can demonstrate ongoing efforts to re-let the property or bring it back into use. However, extensions are not guaranteed and will be subject to the council’s discretion.
Overall, void rates relief can provide much-needed financial assistance to landlords during periods of vacancy. By reducing the business rates payable on empty properties, landlords can alleviate some of the financial strain associated with void periods and focus on finding new tenants or alternative uses for their properties.
In conclusion, void rates relief is a valuable resource for landlords facing empty commercial properties. By understanding the requirements and application process for this relief, landlords can take advantage of this scheme to ease the financial burden of vacant properties. Remember to contact your local council for more information on void rates relief and how it can benefit you as a landlord.