Written by: Steven Jones on Monday 08/05/2017
There are many reasons that you might wish to avoid vacant tenancy periods in your commercial property – loss of rental income is probably at the top of that list. But there can be more to worry about than simply losing money. We look at some of the risks and how you can avoid them.
Aside from the money that an empty property isn’t earning, there are also the risks of vandalism to the premises and squatters moving in. Finding an insurance policy when a property is vacant can also be problematic. Empty properties also contribute to the perceived deterioration of an area, particularly in a high-street setting, which may lead to a more permanent situation in which the property is either let at a reduced rent or is vacant permanently.
Commercial landlords with empty properties also face a double hit financially – not only is there no rent coming in but they are also liable to pay the full amount of business rates on properties which have been empty for over three months (non-industrial premises) or six months for industrial premises.
If you’re having difficulty letting your commercial property, there are some tactics you can adopt;
Of course the real secret to avoiding periods of vacant tenancy is to plan astutely in the run up to the end of a current tenant’s lease to avoid a lengthy and costly period of vacancy.
If you need assistance in finding suitable tenants, or want more advice about how to market your commercial property, speak to a member of our team.