From Burden to Relief: Transforming Business Rates Management for Vacant Properties with Vacatad
In the current economic landscape, managing business rates for vacant commercial properties presents a significant challenge for landlords. With the potential for business rates in the UK to surge by over £2 billion due to inflation and re-evaluation, the financial strain on property owners has become a very real and noticeable concern. This situation is only worsened when a property becomes vacant, transferring the rates liability from tenants to landlords (while turning it from a profitable asset into a non-profitable asset), thereby increasing the urgency to find viable solutions to mitigate these costs and maximise savings.
Vacatad, recognising this growing concern, has introduced an innovative approach to assist property owners in navigating the complexities of business rates on vacant properties. Through a technology-driven beneficial occupation model, Vacatad offers a seamless and effective method for achieving rates relief, thereby protecting landlords from the financial burdens associated with empty commercial spaces.
Understanding Business Rates and Exemptions
Business rates are a significant consideration for property owners, with certain types of properties in England being exempt regardless of their occupancy status. However, for the vast majority of commercial spaces that do not fall under exempt categories, the challenge of managing business rates becomes apparent as soon as the property becomes vacant. After a property has been empty for three to six months, depending on its classification, landlords are required to pay 100% of the business rates. Given the difficulty in finding tenants within this timeframe, especially in a challenging economic climate, this can lead to substantial financial losses.
The Vacatad Solution: A Comprehensive Approach to Rates Relief
Vacatad's core philosophy centres around a passion for helping property owners protect their investments and maximise savings with minimal effort. Vacatad's technology-first method simplifies the process of achieving maximum rates relief, offering a non-disruptive and hassle-free experience for stakeholders. This approach contrasts sharply with more traditional, invasive methods of rates mitigation, providing a safer and more efficient alternative.
Vacatad's service is designed to be non-invasive, requiring minimal logistical effort from the property owner. The plug-and-play occupancy solution demands no property modifications, ensuring a smooth implementation process. By managing all interactions with local authorities, Vacatad ensures a seamless experience for property owners, with little to no involvement required on their part.
Beneficial Occupation and Continuous Savings
One of the standout features of the model is the beneficial occupation of properties for a period of three months. During this time, Vacatad installs the technology solution, providing public benefits such as free internet access and supporting charitable and local business activities. This not only secures beneficial occupation status for the property but also allows property owners the flexibility to find long-term tenants without any disruptions.
Should the property remain vacant, Vacatad's sustainable savings model allows for the initiation of a re-occupation cycle, enabling continuous savings on business rates through repeated beneficial occupation periods. At the conclusion of each occupancy period, Vacatad handles the necessary communications to trigger entitlement to business rates relief, ensuring significant savings for property owners.
A Cost-Effective Model for Property Owners
Vacatad operates on a "Pay Only When You Save" model, underscoring the commitment to delivering value and savings to clients without upfront costs. This model is particularly appealing to property owners looking for efficient and effective solutions to mitigate the financial impact of business rates on vacant commercial properties.
In summary, Vacatad offers a distinctive solution for property owners facing the challenges of business rates on vacant commercial properties. Their non-invasive, technology-driven approach provides a viable alternative to more traditional methods, ensuring efficiency, ease of implementation, and minimal disruption. With Vacatad, property owners can achieve significant rates relief, protecting their bottom line and contributing positively to the visual appeal of high streets and town centres.
