Empty Property Rates Calculator
Estimate the tax and holding costs on an empty commercial property after any exemption period, and the total cost of a void.
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In many countries an empty commercial property still attracts a property tax charge, often after a short exemption period. Combined with insurance, security and maintenance, an empty unit can cost a substantial sum every month it is not let.
That cost is what makes a landlord accept a lower rent, a shorter term or a large incentive. Knowing the number is what turns a negotiation from a matter of pride into arithmetic.
The calculation
Annual tax is the assessed value multiplied by the local multiplier. Any exemption period is deducted from the months empty, and the remaining months are charged pro rata. Insurance, security and maintenance are added for every month, including the exempt ones.
Worked example
An assessed value of 45,000 with a 0.51 multiplier gives an annual charge of 22,950, or 1,912.50 a month. With three months of exemption on a twelve-month void, nine months are chargeable — 17,213. Adding 500 a month of insurance and security across the full year brings the total to 23,213.
This is why incentives exist
Against a 23,213 annual void cost, a six-month rent-free period worth 30,000 on a five-year lease is obviously worth granting. Landlords who refuse incentives while units sit empty are usually not comparing the two numbers.
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Create your free property pageFrequently asked questions
Do all countries charge tax on empty commercial property?
No, and the treatment varies enormously — some charge in full after a short exemption, others reduce it, others exempt vacant property entirely. Check the local rules, since this is one of the largest differences between markets.
Are there exemptions beyond the initial period?
Frequently, for listed buildings, properties below a size or value threshold, those undergoing redevelopment, or where the owner is insolvent. These are highly local and worth checking before assuming the full charge applies.
How should this change my letting strategy?
It puts a monthly price on holding out for a higher rent. Where the void cost exceeds the rent difference being argued over, letting quickly at a slightly lower rent is the better commercial decision.
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