As a landlord, vacant properties can be a major headache. Not only are you missing out on rental income, but you may also be faced with additional expenses such as utility bills and business rates that continue to accrue even when the property is empty. However, there is a way for landlords to alleviate some of these financial burdens through void rates relief.
void rates relief is a government scheme that provides financial assistance to landlords who are facing unoccupied properties. The relief is intended to help ease the financial strain of empty properties and encourage landlords to bring them back into use as quickly as possible. Here’s what you need to know about void rates relief and how you can take advantage of this scheme.
One of the key benefits of void rates relief is that it can help you save money on business rates while your property is unoccupied. Business rates are charged on most non-domestic properties, including commercial properties and empty properties. These rates can be a hefty expense for landlords, especially when a property is sitting vacant and not generating any income. void rates relief can provide some much-needed relief by reducing or eliminating these rates for a certain period of time.
In order to qualify for void rates relief, landlords must meet certain criteria set by the local council. Each council may have slightly different criteria, but typically, landlords must prove that the property is genuinely unoccupied and that they are actively trying to bring it back into use. This may involve providing evidence such as utility bills, insurance documents, and proof of marketing efforts to show that the property is available for rent.
It’s important to note that void rates relief is not automatic, and landlords must apply for the relief through their local council. The application process can vary depending on the council, but landlords will generally need to provide information about the property, proof of vacancy, and details of any efforts to relet the property. Once the application is approved, landlords can start benefiting from the relief and saving on business rates.
While void rates relief can provide much-needed financial assistance to landlords, it’s also important to be aware of the potential pitfalls of the scheme. For example, void rates relief is typically only available for a limited period of time, usually ranging from three to six months. After this period, landlords may be required to start paying full business rates again, unless they can demonstrate that the property is still genuinely unoccupied.
Additionally, landlords should be aware that void rates relief may not cover all of their expenses related to the property. While the relief can help with business rates, landlords will still be responsible for other costs such as utility bills, insurance, and maintenance. It’s important to budget carefully and consider all expenses when deciding whether to apply for void rates relief.
In some cases, landlords may also be eligible for additional financial assistance through other government schemes. For example, the government introduced a new business rates holiday in response to the COVID-19 pandemic, which provided relief for retail, hospitality, and leisure businesses. Landlords with properties in these sectors may be able to benefit from this additional relief on top of void rates relief.
Overall, void rates relief can be a valuable resource for landlords who are struggling with unoccupied properties. By taking advantage of this scheme, landlords can save money on business rates and alleviate some of the financial burdens associated with vacant properties. However, it’s important to be aware of the eligibility criteria, application process, and potential limitations of void rates relief in order to make the most of this valuable resource.