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For commercial landlords and property owners, managing vacancy periods is more than a simple logistical task; it’s a critical component of safeguarding assets and maintaining income. Empty properties can quickly become liabilities if risks are left unchecked.
From financial setbacks to legal complications and social challenges, leaving properties vacant can present significant heartache for landlords.
The good news is that understanding the risks and implementing mitigation strategies can protect your investments, minimise expenses, and contribute to community safety.
These are all issues we’ll cover in this latest blog. ASTOP specialises in protecting property investments by facilitating novel unoccupancy strategies, so we’re qualified to provide guidance.
How To Mitigate Risks Of Empty Commercial Properties
Ensuring an empty property doesn’t become a costly or risky burden is essential for landlords. This means proactively addressing vacant property issues around deterioration, unwanted antisocial behaviours, theft, squatting, expensive legal disputes, and more.
To help, we have provided an in-depth look at the risks of leaving a property empty and how you might mitigate them, protecting your assets and securing your investment. Readers can expect to learn how to maintain an unoccupied property’s value while minimising costs and protecting the surrounding community. Best practices for managing vacant properties are relatively straightforward, but they do need appropriate time and attention to succeed.
Vandalism and Theft
Financial losses associated with vacant buildings are often associated with vandalism and theft. Crime statistics, as you might expect, indicate that vacant properties are at a higher risk of break-ins, with criminals targeting them for valuable materials like copper pipes, fixtures, or electrical components. Vandalism, too, is common in empty buildings, with graffiti, broken windows, and general defacement typically seen in poorly secured buildings. Such damage can be costly and impact the property’s overall appeal and future rental value.
Squatting
Although recent laws in the UK criminalise the practice in residential buildings, commercial properties remain susceptible to the unsanctioned habitation known as squatting. Squatters can occupy an empty building if they don’t commit a criminal act to gain entry, and, as a result, landlords may face lengthy legal processes to evict them. Extensive repairs to reverse any damage caused by the squatters may also be required.
Antisocial Behaviour
Even if troublemakers don’t move in, abandoned buildings can become gathering spots for antisocial activities. This can lead to negative social impacts and property damage. Reports have shown that empty properties in urban areas often attract illegal activities such as drug dealing and use, underage drinking, street violence, car crime, and more. Not only does this tarnish the property owner’s reputation, but it also raises genuine concerns for neighbouring communities. A property prone to antisocial behaviour is also likely to see its future rental value decline considerably. Once a property becomes prone to anti-social behaviour, even relatively minor activities such as graffiti, the situation can be incredibly challenging to turn around.
Fly-Tipping
Fly-tipping is a hugely disruptive form of anti-social behaviour. In addition to inconvenience, if individuals or rogue companies dump waste illegally, property owners can see themselves liable for cleanup costs by local authorities. Repeated instances may see a landlord or property owner sanctioned or fined for not taking due care. Like more general anti-social behaviour, fly-tipping is a problem that can escalate quickly and be difficult to curtail once established.
Pest & Wildlife Infestations
When left unattended, empty properties can attract wildlife or pests. Rodents, birds, and insects may take advantage of the quiet environment to establish themselves, nest, and breed, leading to infestations that cause damage to the property. Pest infestations can be challenging to manage and often require specialist pest control services repeatedly to entirely remove them effectively. Damage may be more than aesthetic, with structural damage caused by animals, birds, or insects requiring significant repairs.
Damp and Mould
One of the most common yet underestimated risks in a vacant property is damp and mould buildup. When a property is unoccupied, lack of ventilation, irregular heating, and unnoticed leaks can quickly lead to damp conditions. This moisture creates the perfect environment for mould to grow, affecting the building’s structural integrity and posing health risks if it spreads. Damp and mould can significantly lower a property’s value, making it unappealing to future tenants and requiring extensive remediation efforts to restore. Investing in a preventative approach is always wise.
The Costs Of Leaving A Property Empty
Unoccupied properties present numerous financial challenges, including direct and indirect costs that can strain a landlord’s budget. The first is relatively obvious: the loss of rental income. Every month that a property sits empty, the landlord experiences an immediate financial hit. The absence of tenants translates directly to a lack of revenue, and this loss can be significant and financially destabilising for the organisation.
However, other costs associated with an empty property might not be as immediately apparent. We will run through them here to avoid nasty surprises should you need to balance the books.
Increased Insurance Costs
Insurance for vacant properties can be more expensive due to the higher risks of vandalism, theft, and damage. Insurers view empty properties as higher liability, and premiums often increase accordingly. Some insurance providers may even refuse to cover vacant properties, making it essential for landlords to find coverage explicitly tailored for unoccupied spaces. The lesson, however, is clear: be prepared to pay more.
Inspection, Maintenance & Repair Expenses
Empty properties can deteriorate quickly without regular inspection and maintenance, leading to higher repair costs. Issues like broken windows, plumbing leaks, or roof damage may go unnoticed, exacerbating the deterioration. Regular upkeep of vacant properties, including cleaning and repairs, is crucial for preventing more costly maintenance requirements over time.
You may manage the inspection and maintenance directly if you have the time and resources. Of course, specialist outsourced service providers can manage the process for you upon receiving a regular, potentially relatively high, fee. Should you use one, it is essential to have a robust and well-thought-through contract in place.
Lease Obligations
Landlords are legally responsible for maintaining their properties to specific standards, even without tenants. This includes ensuring that the building remains structurally safe and that basic amenities (such as plumbing) are maintained to prevent hazards. Failing to uphold these standards can result in fines and potentially costly liabilities if the property’s condition adversely affects neighbouring properties, the local community, visitors and passersby.
Security & Preventing Unlawful Access
Keeping a vacant property secure from unauthorised access is essential to protect it from vandalism, squatting, and other risks. Implementing robust security measures can help deter unlawful activities and reduce the risk of damage. Ensuring that all doors, windows, and other entry points are secure is essential for protecting an empty property. The costs of Installing reinforced locks, secure shutters, and boarding up vulnerable entry points in high-risk areas can be significant. Depending on the size and value of a property, investing in security systems, such as alarms, CCTV cameras, and motion-activated lighting, may be required. Contracting a security company to conduct regular patrols around a vacant property can also add valuable protection. In all cases, security costs must be balanced against the costs of crime, vandalism and unauthorised access. .
Protecting Your Property
We suggest landlords take proactive measures to reduce the risks associated with vacant periods. We have listed some strategies to prevent antisocial behaviour in empty spaces, preventing crime and unauthorised entry, accruing additional costs, falling foul of legal problems, and more.
We will start with our favourite. One of the best ways a landlord can protect an empty property is to prevent it from becoming empty in the first place. Landlords can occupy their assets, even temporarily, through short-term leases, often partnering with charities and good causes as they do it. This approach provides a layer of security against vandalism and squatting, generates some income and is frequently supported by local governments.
If you’d like to know more about partnering with a charity or good cause to reduce the Impact of vacant properties on communities as well as owners, feel free to contact ASTOP’s Shaylesh Patel below for expert advice and solutions.
Regular Inspections
If you’re forced to leave your property unoccupied, conducting regular inspections can help identify and address minor issues before they escalate. Scheduled visits allow landlords or property managers to spot signs of potential risks, from structural damage to wildlife presence, early on. Frequent inspections signal that the property is monitored, deterring potential vandals or squatters.
Enhanced Empty Property Security Measures
As discussed above, investing in security systems, such as alarms, CCTV cameras, and motion-sensitive lighting, can significantly reduce the risks of trespassing and theft. Security patrols are another option for high-risk areas, with visible monitoring serving as an additional deterrent. Enhanced security protects the property and adds value by reassuring prospective tenants that the building is well-maintained and secure.
Community Engagement
Building relationships with local communities can also provide an extra layer of security for vacant properties. Neighbours and local organisations can be incentivised to report any suspicious activity, helping to keep the property safe. Engaging with the community benefits the property owner and contributes to community safety by reducing the likelihood of criminal activities around vacant spaces.
Safeguarding Your Investment
Addressing the risks associated with empty properties is essential for any landlord looking to protect their investment. Unoccupied properties have unique challenges—from financial losses to social and legal concerns. Landlords can mitigate these risks by implementing proactive strategies, such as occupying the property, enhancing security, and conducting regular inspections.
By following these best practices, landlords can avoid vacancy’s costly and disruptive impacts. For more information, explore our articles on avoiding vandalism in empty properties, legal issues related to vacancy, and other hidden costs associated with unoccupied properties.
If you’re interested in partnerships with local charities and good causes, contact ASTOP’s Shaylesh Patel directly below.
