As a property owner, dealing with void periods can be a stressful and costly experience. When a property sits empty, not only are you missing out on rental income, but you may also still be liable for business rates on the empty property. This is where void rates relief comes into play, providing some financial relief for property owners during these difficult times.
What is void rates relief?
Void rates relief, also known as empty property relief, is a scheme provided by local authorities to ease the financial burden on property owners who are facing empty periods. In essence, it is a temporary exemption from paying business rates on a property that is unoccupied for a certain period of time.
The period of void rates relief can vary depending on the local authority, but it typically ranges from 3 to 6 months. Some authorities may offer longer periods of relief for certain types of properties or in specific circumstances, so it’s important to check with your local council for the specific details.
How Does void rates relief Work?
When a property becomes empty, the local council will usually send a rates bill to the property owner based on the estimated rental value of the property. However, if the property remains empty for an extended period, the owner may be eligible for void rates relief.
To apply for void rates relief, property owners must usually fill out an application form provided by their local council. This form will require information about the property and the reasons for it being empty. The council will then assess the application and determine whether the property qualifies for relief.
It’s important to note that void rates relief is not automatic, and property owners must actively apply for it in order to benefit from the scheme. Failure to apply for relief could result in the property owner being held liable for the full rates bill during the void period.
Benefits of void rates relief
Void rates relief offers several key benefits for property owners facing empty periods:
Financial Relief: Perhaps the most obvious benefit of void rates relief is the financial relief it provides to property owners. By exempting them from paying business rates on a property that is empty, owners can save a significant amount of money during these difficult times.
Incentive to Fill the Property: Void rates relief can also serve as an incentive for property owners to actively seek tenants for their empty properties. Knowing that they will not be burdened with rates bills while the property is unoccupied, owners may be more motivated to market the property and secure new tenants.
Encourages Property Maintenance: By providing some financial relief, void rates relief can also encourage property owners to invest in maintenance and improvements to attract new tenants. This can help to increase the property’s rental value and make it more appealing to potential tenants.
Challenges of Void Rates Relief
While void rates relief can be a valuable scheme for property owners, there are some challenges to be aware of:
Limited Period of Relief: Void rates relief is only a temporary measure, typically lasting for a few months. If the property remains empty after the relief period has expired, the owner will once again be liable for paying business rates on the property.
Criteria for Relief: Each local authority sets its own criteria for void rates relief, and not all properties may qualify for the scheme. Property owners must meet certain requirements in order to be eligible for relief, and failure to do so could result in the application being rejected.
Conclusion
Void rates relief can provide much-needed financial relief for property owners facing empty periods. By exempting them from paying business rates on unoccupied properties, the scheme offers a valuable incentive for owners to seek tenants and maintain their properties. While there are some challenges to be aware of, void rates relief remains a useful tool for property owners looking to navigate the difficulties of empty periods.