As a landlord, dealing with void periods is a common challenge that can significantly impact your rental income. When a property is left vacant between tenancies, you not only lose out on rental payments but also have to cover the costs associated with maintaining the property. However, there is a solution that can help ease the financial burden of void periods – void rates relief.
What is void rates relief?
Void rates relief is a scheme offered by local authorities to provide financial assistance to landlords who are experiencing void periods in their properties. The relief is aimed at reducing the financial strain of vacant properties by offering a discount on business rates, which are taxes paid on non-residential properties.
Typically, landlords are required to pay full business rates on a property, even when it is vacant. However, void rates relief allows eligible landlords to apply for a temporary exemption or discount on their business rates for a specified period of time while the property remains unoccupied.
How Does void rates relief Work?
The specifics of void rates relief can vary depending on the local authority that is offering the scheme. In some cases, landlords may be eligible for a full exemption from business rates for a set period of time, typically three to six months. During this time, the property is considered to be exempt from business rates, and the landlord does not have to pay anything.
In other cases, landlords may be eligible for a discount on their business rates instead of a full exemption. The discount amount can vary, but it is typically around 50% of the normal business rates for the property. This can help landlords reduce their financial burden during void periods and make it easier to cover the costs of maintaining the property while it is vacant.
It is important to note that void rates relief is not automatic – landlords must apply for the relief through their local authority and meet certain eligibility criteria in order to qualify. These criteria may include having a property that has been vacant for a certain period of time, demonstrating that efforts have been made to re-let the property, and providing evidence of the property’s status as unoccupied.
Benefits of void rates relief for Landlords
Void rates relief can provide several benefits for landlords who are facing void periods in their properties. Some of the key advantages of void rates relief include:
Financial assistance: Void rates relief can help landlords reduce their financial burden during void periods by providing a discount on business rates or a temporary exemption from paying rates altogether. This can help landlords cover the costs of maintaining the property while it is vacant and reduce the impact on their rental income.
Incentive to re-let: By offering a discount on business rates, void rates relief can incentivize landlords to actively seek new tenants for their vacant properties. This can help reduce the duration of void periods and minimize the impact on the landlord’s rental income.
Support from local authorities: Void rates relief is typically offered by local authorities as a way to support landlords who are experiencing void periods. By taking advantage of this scheme, landlords can access financial assistance and resources to help them navigate the challenges of void periods and maintain their properties effectively.
Overall, void rates relief can provide valuable support to landlords who are facing void periods in their properties. By applying for the relief and meeting the eligibility criteria, landlords can access financial assistance to help them cover the costs of maintaining their properties while they are vacant. This can help reduce the financial strain of void periods and make it easier for landlords to manage their rental properties effectively.
In conclusion, void rates relief is a valuable scheme that can provide financial assistance to landlords during void periods. By offering a discount on business rates or a temporary exemption from paying rates, void rates relief can help landlords cover the costs of maintaining their properties while they are vacant and reduce the impact on their rental income. Landlords who are experiencing void periods should explore the possibility of void rates relief through their local authority to take advantage of this beneficial scheme.