As owners of commercial properties have come to understand over the last few years, anxiety around a vacant commercial property is no longer limited to just the stress of finding a new tenant whilst rental income is paused. With the introduction of empty rates, commercial landlords have been faced with a whole new challenge – one which can see them lose money on their investment and end up in financial difficulty.
But why should commercial landlords concern themselves with empty rates and seek out help? What makes the liability so deserving of attention in the first place? To answer the title question – one we’ve heard many times – we’ve compiled just three reasons to take notice of empty rates liability, as well as an explanation of what you can do about it. Good luck!
- Rising Costs
After an initial three-month period, businesses must start paying full business rates on their empty premises. Consider that, during this period, there’s no rental income, but there are costs such as maintenance, insurance and security. Then, you have to add a whole extra cost on top, inflating your outgoings at a time when your attention is on finding a new tenant.
The total costs become a burden if you’re not prepared, so concerning yourself with empty rates ahead of time is a must.
- Losing Out on Your Investment
A commercial property is an investment – an opportunity to secure an asset which will benefit you over the years. Even if a tenant moves out and the property is empty for a while, there’s still the potential to keep building value in that investment. When you have to consider a huge empty rates liability bill, however, that can significantly damage your return on investment. In short, having to pay empty rates is forcing you to lose out on your investment.
- There’s Money to be Saved
This is perhaps the most important reason to take note of empty rates: because there’s an opportunity to save money if you do. Every business owner likes the idea of saving money, and by acknowledging the liabilities falling on you and your empty commercial property, you can take the necessary action to mitigate the cost and save money whilst searching for a new tenant. Sometimes, a little bit of worrying can be rewarding after all.
So, What Do I Do About it?
You’ve acknowledged the growing burden of empty rates liability, but there’s no point in just wallowing in worry. Although we can’t help you with the security and insurance costs that arise when your commercial property becomes vacant, the team at FCS canhelp you to navigate the world of empty rates liability and relief – even helping to take care of the confusing paperwork involved in securing initial rates relief. We’ll help you to carry on making the most of your commercial property investment and save money on empty rates by taking over the liability for you.
Taking note of empty rates ahead of time really can make all the difference, as you’ll find out by following up on this article.