The True Cost of Vacancy: More Than Just Lost Rent
Leaving your property empty means missing out on potentially lucrative rent – but that’s just the start. There are other hidden costs involved with keeping your property vacant that can quickly build up. Ongoing utility and council tax bills, insurance premiums, empty property business rates and security costs are all factors worth considering before making the decision to leave your property vacant. By looking at convenient ways to occupy it, owners can reap the benefits of offsetting running costs, as well as opportunities to support the community and ensuring upkeep to a high standard.
Five Reasons Vacant Properties Lose Value
1. Neglect and Deterioration
Unused buildings degrade faster. Whether its damp being left to spread, leaks remaining unnoticed and causing ceilings to fall in, mould taking hold or pests becoming a serious problem, without proper care and maintenance, your property could rapidly deteriorate, leading to the need for costly and time-consuming repairs. Because small issues are more likely to go unnoticed, the risk for vacant property owners is that problems that could initially have had a simple fix end up becoming much more serious if they aren’t treated promptly. Exterior deterioration can also affect perceived value due to loss of kerb appeal.
2. Vandalism and Anti-Social Behaviour
Unfortunately, empty buildings are magnets for trespassers, graffiti, and illegal activity. Leaving a building unoccupied for long periods of time means the chances of your property being subject to vandalism or other types of anti-social behaviour increases. Any damages incurred can be costly and could potentially affect neighbouring properties, adding to the bill and the stress. These things combined could create reputation problems for the area, devaluing properties and making them far less attractive to potential buyers.
3. Higher Insurance Premiums or Denied Claims
Another factor to consider is insurance. When it comes to claims, it’s important to check your policy as many insurers increase premiums on vacant buildings or could even void cover altogether if a building is unoccupied for extended periods. If you are unable to prove ‘reasonable occupancy’ you may find that an insurer refuses to pay out on any claims, which can increase both legal and financial risks.
4. Loss of Planning or Development Value
Vacant properties are more likely to fall into disrepair and because of this will naturally lose value in the eyes of prospective investors or buyers. The more work that needs to be done to a property, the less a buyer will be willing to pay. Neglected buildings become unattractive, and buyers may have concerns that any visible issues will only lead to even deeper problems should they investigate further. Not only this but any planning permissions that were in place could lapse if the property remains vacant for long periods, or the building may become ‘blighted’ in the eyes of developers.
5. Devaluation of Surrounding Property and Community Impact
Leaving a building unoccupied and not taken care of can not only affect the value of that building but also have a knock-on effect that drags down the perception of the entire area. Local residents may not only feel disgruntled but also oppose any future development or start petitions to object to any planning permissions – this, in turn, could lead to negative press and social media attention, damaging your property value and reputation.
Why Traditional Security Isn’t Enough
If you choose to leave your property vacant, you will no doubt want to ensure that it remains secure. However, measures such as, boarding your property up and installing CCTV cameras are not as effective as you might hope, and can fail to effectively prevent antisocial behaviour and trespassing. Not only do they not provide the level of security you might wish for, but traditional security measures are also costly and generally fail to address other concerns such as decay and structural issues.
The Guardian Solution: An Active, Protective Presence
At LOWE Guardians we provide safe and effective solutions to vacant properties. Our Guardians can look after your property while it’s empty and act as a cost-neutral, human presence that will deter crime, ensure that the building is lived in and any upkeep is taken care of. Properties will be respectfully lived in and kept clean, ventilated, temperature controlled and regularly inspected. Landlords’ costs are also greatly reduced, providing long-term value and protection. Guardianship properties can also prevent your building from becoming an eyesore in the local community, even more than this, they have a positive social impact, injecting life and colour into the local area.
Case Studies & Testimonials
If you want to learn more about our work, including case studies and testimonials from our delighted clients, you can discover more on our Vacant Property Service page.
Added Benefits of Partnering with LOWE
Are the risks and costs of leaving your empty property really worth it? Property guardianship can ensure your building is well-cared for and secure and doesn’t become a problem in the community, therefore maintaining and increasing its value and giving you ultimate peace of mind.
The team at LOWE Guardians is passionate about connecting key workers, working professionals and artists with high-quality spaces in which they can live, work and create. We work with Landlords to get their property up to the right standard and offer bespoke management solutions designed to remove the hassle and risk of vacant property management for landlords.. If you are looking for a guardianship company with a trusted track record, why not get in touch to find out how we can help safeguard your property – and its value.