As a landlord, one of the biggest challenges you may face is dealing with vacancies in your rental properties. When a property sits empty, not only do you lose out on rental income, but you may also be required to continue paying business rates on the property. However, there is a potential solution for landlords facing this issue – void rates relief.
Void rates relief is a scheme designed to help landlords reduce the financial burden of paying business rates on properties that are empty. In this article, we will explore what void rates relief is, how it works, and how you can apply for it as a landlord.
What is void rates relief?
Void rates relief is a temporary exemption from paying business rates on a property that is empty. In the UK, business rates are usually payable on most commercial properties, including shops, offices, warehouses, and industrial buildings. However, when a property becomes vacant, landlords may be eligible for void rates relief to help ease the financial strain of paying rates on an unoccupied property.
How Does void rates relief Work?
Void rates relief is a discretionary scheme, meaning that local authorities have the power to grant relief on empty properties within their jurisdiction. The amount of relief and the duration of the exemption can vary depending on the local council’s policies and guidelines.
In general, void rates relief is granted for a specific period of time, usually between three and six months. After this initial period, landlords may be required to reapply for relief if the property remains empty. Some local authorities may grant up to 100% relief for the first three months, with a reduced rate in subsequent months.
It is important to note that void rates relief is not automatic, and landlords must apply for relief through their local council. In most cases, landlords will need to provide evidence that the property is genuinely vacant and not being used for any commercial purpose.
Qualifying for void rates relief
To qualify for void rates relief, landlords must meet certain criteria set out by their local council. While the specific requirements may vary, some common eligibility criteria include:
– The property must be genuinely vacant and not in use for any commercial activity.
– The landlord must have made reasonable efforts to actively market the property for rent.
– The property must be capable of occupation and not undergoing major renovations or repairs.
– The landlord must be able to provide evidence of the property’s vacancy, such as utility bills or rental listings.
It is important for landlords to familiarize themselves with their local council’s guidelines for void rates relief to ensure they meet the necessary requirements for eligibility.
Applying for Void Rates Relief
If you believe you qualify for void rates relief, the first step is to contact your local council and inquire about the application process. Some councils may have an online application form, while others may require landlords to submit their application in person or by mail.
When applying for void rates relief, landlords will typically need to provide the following information:
– The address of the property in question.
– The date on which the property became vacant.
– Evidence of the property’s vacancy, such as photographs or utility bills.
– Details of any efforts made to market the property for rent.
– Contact information for the landlord or property manager.
Once the application has been submitted, the local council will review the information provided and determine whether void rates relief will be granted. If approved, landlords will receive confirmation of the relief period and the percentage of relief granted.
In conclusion, void rates relief can be a valuable tool for landlords facing vacancies in their commercial properties. By taking advantage of this scheme, landlords can alleviate some of the financial burden of paying business rates on empty properties and help to protect their rental income. If you believe you may qualify for void rates relief, be sure to contact your local council for more information on how to apply for this valuable relief.