Owning property can be a lucrative investment that provides a stable source of income for many individuals. However, when a property sits unoccupied for an extended period of time, it can have financial consequences that go beyond just missed rental income. One of the factors that property owners need to consider when their property is unoccupied is the rates that they may be required to pay. In this article, we will explore the implications of rates on unoccupied property and how property owners can navigate this aspect of property ownership.
The rates on unoccupied property, often referred to as Empty Property Rates (EPR), are essentially a tax that property owners must pay when their property is not being used. These rates are typically levied by the local government and are calculated based on the rateable value of the property. The purpose of EPR is to discourage property owners from leaving their properties vacant for extended periods of time, as vacant properties can have a negative impact on neighborhoods and communities.
One of the key things to understand about EPR is that they can be quite significant, especially for properties with a high rateable value. In some cases, property owners may be required to pay up to 100% of the property’s rateable value in EPR if the property has been unoccupied for an extended period of time. This can add up to a substantial amount of money that property owners will need to budget for if their property remains unoccupied.
There are some exemptions and reliefs available for property owners who are facing high EPR bills. For example, certain types of properties, such as newly built properties and properties that are undergoing major renovations, may be eligible for a temporary exemption from EPR. Additionally, properties that are owned by charities or community amateur sports clubs may be eligible for a 80% discount on their EPR bills.
Property owners who are struggling to pay their EPR bills may also be able to apply for hardship relief from their local council. Hardship relief is typically granted on a case-by-case basis and is designed to provide temporary relief to property owners who are facing financial difficulties. Property owners will need to provide evidence of their financial circumstances in order to qualify for hardship relief, and the relief is typically granted for a limited period of time.
Another option for property owners who are unable to pay their EPR bills is to explore the possibility of leasing out their property on a short-term basis. By renting out the property, even for a short period of time, property owners may be able to generate some income that can help offset the cost of the EPR bills. This may also help to mitigate some of the negative impacts of the property being left vacant, such as vandalism or deterioration.
Ultimately, property owners need to carefully consider the financial implications of leaving their property unoccupied for an extended period of time. In addition to the costs associated with EPR, there are other risks associated with leaving a property vacant, such as potential damage or deterioration that can occur if the property is not being looked after. Property owners should weigh these risks against the potential benefits of keeping the property unoccupied and make an informed decision about how to proceed.
In conclusion, rates on unoccupied property are an important consideration for property owners who are thinking about leaving their property vacant for an extended period of time. EPR can be a significant financial burden, and property owners need to be aware of the implications of leaving their property unoccupied. By exploring the options available for exemptions, reliefs, and short-term leasing, property owners can better navigate the challenges of owning unoccupied property.