Empty commercial properties are more than just a missed opportunity for landlords – they can become a significant financial liability. Once the initial exemption period ends (usually three months, or six months for industrial buildings), landlords become responsible for business rates on unused space.
With the cost of these charges rising year after year, the pressure on landlords to reduce overheads has never been greater.
One highly effective – and often overlooked – solution is charitable occupation. Through business rates charity relief, landlords can reduce or even eliminate their rates liability while also helping to make a positive social impact on the community.
Below we’ll explore what charitable relief is, how it works, and why working with VOIDS makes the entire process simple, compliant and rewarding
How VOIDS Can Help
At VOIDS, we specialise in connecting landlords with reputable UK charities that need temporary space. Whether it’s for outreach work, storage, training or community events, these organisations are looking for exactly the type of space that landlords are paying to keep empty.
We manage the entire process – from sourcing the right charity, to drawing up agreements, managing occupation and overseeing a smooth exit when the property needs to be repurposed or re-let.
Our approach is fully legal, transparent, and based on over 30 years of experience in commercial property. Landlords who work with us benefit from:
- Reduced business rates liability
- Improved security for vacant buildings
- Positive PR and community impact
- A hands-off, fully managed process
What Is Charity Relief on Business Rates?
Business rates charity relief is a government-backed scheme that offers reduced rates to charities occupying commercial properties. When a registered charity occupies a property and uses it wholly or mainly for charitable purposes, they are entitled to a mandatory 80% relief on business rates. In many cases, the local authority will provide a further discretionary 20%, bringing the total discount to 100%.
This relief is applied to the charity as the occupier – but the real benefit for landlords is that it provides a legitimate, legal way to avoid paying business rates on otherwise empty buildings. Instead of paying out thousands in rates on vacant units, landlords can allow a charity to temporarily occupy the space, reduce their financial exposure, and support a good cause.
This is not a loophole – it’s a well-established, council-recognised approach to rate mitigation, used by property owners across the UK.
Why Landlords Should Consider Charitable Occupation
There are several benefits for landlords that choose to allow charities to occupy their empty properties, including:
Financial Advantages
For landlords holding on to empty properties, business rates are often one of the biggest avoidable costs. Charitable occupation provides a clear alternative.
- Letting a registered charity use part or all of an empty property allows landlords to:
- Avoid or significantly reduce ongoing business rates
- Extend the period of rate relief beyond the standard vacancy exemption
- Reduce the risk of vandalism, trespass, and property degradation
- Lower insurance premiums by keeping buildings in use
The result? Thousands of pounds saved — all while avoiding the reputational and practical risks of holding long-term voids.
Social and Reputational Benefits
Beyond cost savings, charitable relief business rates arrangements create an opportunity to contribute to the local community. Charities gain access to space they could otherwise never afford, allowing them to deliver services, host events, run pop-up shops or provide outreach support.
This has a tangible impact – particularly for charities working in areas like mental health, food poverty, the arts or youth services.
As a landlord, supporting these initiatives through charitable occupation can:
- Improve local visibility and brand reputation
- Support ESG (Environmental, Social, Governance) and CSR goals
- Demonstrate a commitment to community regeneration
What Does Charitable Occupation Involve?
It’s a straightforward process – but it must be done properly.
To qualify for business rates relief for charities, a few key conditions must be met:
- The charity must be registered with the Charity Commission
- The property must be actively used for charitable purposes (not just held vacant)
- The arrangement must be genuine, with documented agreements and clear occupancy
Typically, this means setting up a short-term licence agreement which outlines the responsibilities of both parties. The charity will then apply to the local council for rate relief based on their occupation and use of the property.
It’s important to note: this isn’t a “get out of rates free” scheme. Local authorities will expect the charity to be demonstrably using the space in line with their stated objectives. That’s why it’s essential to work with an experienced partner like VOIDS to ensure everything is above board.
How VOIDS Makes It Easy
At VOIDS, we’ve spent over 30 years helping commercial property owners get more from their empty spaces. We take care of everything landlords need to make charitable occupation work – legally, efficiently and without stress.
Here’s how we support you:
- We source and vet registered charities looking for space in your area
- We manage the documentation, including licences, handover processes, and notice periods
- We liaise with councils to make sure relief is claimed properly and efficiently
- We ensure genuine occupation, maintaining compliance with legal and local authority requirements
- We monitor usage and protect your exit options, so you stay in control of your property
This means landlords benefit from reduced costs without having to chase tenants, navigate charity law or worry about liability.
Charitable occupation offers one of the most powerful solutions for landlords facing high business rates on empty commercial properties. Through business rates relief for charities, you can:
- Reduce or eliminate your liability
- Put your space to meaningful use
- Protect and enhance your property’s value
- Make a visible difference in your local community
Ready to reduce your business rates liability – and do some good in the process?
Contact VOIDS today to find out how we can help you turn an empty space into a valuable asset.