How to save money on your vacant commercial property

15 May 2023, by Verity Editor

building door

Something many commercial landlords don’t factor in when they first acquire a property is that it may become vacant for some time and become a money pit.

Though you bought the property as an investment to generate recurring revenue, you can lose money if you don’t manage vacant commercial properties correctly.

In fact, it’s estimated that owning a vacant commercial property can cost you up to £100K every year to maintain. From security to repairs and insurance, these business expenses can quickly rack up quite the bill.

That’s why it’s so important to reduce the cost of owning a vacant commercial property in any way you can, so you can minimise any profit losses while it’s unoccupied.

In this blog, we will help you save money on your vacant commercial property with some of our best cost-saving measures, tips, and tricks.

Ways you might be losing money with a vacant commercial property

First, let’s understand how you could potentially lose money on your empty property, so you know what areas of property ownership you should pay attention to.

  • Squatters gaining access: If squatters enter your vacant property, you’ll likely have to pay solicitor fees to get them to leave.
  • Property vandalism: Vacant properties can often be subject to crimes of vandalism, leaving you with repair costs for graffiti, broken windows, etc.
  • Property damage: If you don’t inspect your vacant property often enough, you can end up with expensive damage such as mould, rats, and leaks. You may also have trouble claiming insurance for these repairs, as the property was empty.
  • Rent loss: With a vacant commercial property, you’re likely missing out on thousands of pounds worth of rent every year.
  • Depreciation: The longer your commercial property sits vacant, the less real estate value it will have. So whether renting or selling, you might make a profit loss.

3 cost-saving tactics for empty commercial properties

Now onto some effective ways commercial landlords can save money on empty properties in the UK. These cost-saving tactics can reduce profit losses by the thousands, helping you better maintain your financial stability during property vacancies.

#1 Inspect regularly

Small maintenance issues, like a crack in the wall or a leaky pipe, can evolve into expensive problems over time if you don’t catch and fix them early enough. Would you rather pay to fix a small leak or repair damage from the flood it causes over time?

This is why it’s crucial that you regularly perform an inspection of your vacant property (or ask a trusted friend/family member/professional to do so if you are unable to. These inspections will help you to avoid making costly maintenance repairs down the line.

#2 Make green upgrades

By investing in more energy-efficient products and systems for your commercial property, like installing LED light bulbs and solar panels or switching from gas to electrical heating, you can save thousands on your energy bills.

If your commercial property is vacant as you cannot attract renters, ‘going green’ may be just the selling point you need to help a business owner take the plunge. The more energy efficient your building is, the less you (and your tenants) will pay for heating and powering it.

#3 ‘Turn off’ the property

When leaving your home for a long holiday, you want to reduce your property’s energy usage so you are not paying for unused electricity or gas. The same principle applies to your empty commercial property.

Here are some ways to keep energy costs down:

  • Turn off all appliances
  • Take plugs out of sockets
  • Turn wall sockets off
  • Turn water heater temperature down
  • Close curtains and blinds
  • Install a smart metre
  • Defrost the freezer
  • Turn off the fridge

Let us help you save hundreds – even thousands – on your business rates

From carrying out energy efficiency upgrades to conducting regular inspections, there are plenty of ways you can save money on your vacant commercial property.

But the most effective way you can cut vacant property costs and make more profit is by having our experts carry out a free business rates bill assessment!

At Verity, our rates experts are helping commercial landlords all over the UK generate £18 million in savings every year on their business rates bills.

Though we rarely encounter a commercial property owner who didn’t save anything on their bill thanks to our service, if this is the case, you don’t pay a penny!

Our business rates experts will liaise with the Local Authority on your behalf to help you minimise your business rates with a no-win, no-fee guarantee, making saving money easy!

We can save you 100% on your business rates bill! Simply send us your empty rates bill to see how much you could save.

I have found Verity extremely efficient in their management services and assisting . Whenever queries arise they assist and handle the matter expeditiously

Jonathan Englard

Related articles

  • Commercial property owners: What keeps them up at night?

    Commercial property owners: What keeps them up at night?

  • From Snail Farming to ‘Property Guardians’: Rates Mitigation Gone Wrong

    From Snail Farming to ‘Property Guardians’: Rates Mitigation Gone Wrong

  • Landlords: The many hurdles of a vacant commercial property

    Landlords: The many hurdles of a vacant commercial property