Home  /  Insights  /  Business Rates & Property Tax Advisory
Business Rates & Property Tax Advisory  

Who Pays Business Rates on a Commercial Property: Landlord or Tenant?

Clear answers for commercial landlords and tenants.

Who Pays Business Rates on a Commercial Property: Landlord or Tenant? Business Rates & Property Tax Advisory

Updated October 2026 · Fraser Bond

Business rates · Who pays

Business rates: landlord or tenant?

Occupierusually pays
Emptyowner pays after relief
Servicedoften included
Reliefscheck eligibility
In short: Business rates are normally paid by whoever occupies the property, so for a let unit that's usually the tenant. When a property is empty, the owner usually pays empty property rates after a short exemption (typically 3 months, or 6 months for many industrial units). In serviced offices, rates are often included in the licence fee. Reliefs such as small business rate relief may reduce the bill for eligible occupiers.
SituationWho usually pays
Unit let on a leaseTenant (occupier)
Property emptyOwner, after the exemption period
Serviced officeProvider, included in the fee
Shared buildingDepends on how it is split into rating assessments

Who pays business rates

Empty rates cost to a landlord
Empty rates payable–

Check exemptions and the current multiplier with your council.

Landlords: reduce voids

  • Rental valuation and marketing
  • Tenant finding
  • Lease management
  • Short-term lets to cover voids

Frequently asked questions

Does the landlord pay business rates?

Usually only when the property is empty, after the exemption period.

Are rates included in my rent?

Not usually, unless it is a serviced office or the lease says so.

Can I get relief?

Small businesses may qualify for small business rate relief.

Have an empty unit?

Let us find a tenant and stop empty rates.

Get a free valuationList your property

Related guides

Next step

You are one message away from an answer.

If you have a question

Send it to us and get a straight answer.

Describe the property and the problem. We will tell you what we would do, what it should cost, and if we are not the right people, who is.

  • Replies the same working day
  • The person who answers is the person who handles it
  • No fee, and no obligation to instruct us
If you are looking for a property

See everything we are instructed on.

Sales and lettings across Prime Central London and the wider UK, with the same team behind every listing.

  • Residential and commercial in one search
  • Filter by borough, budget and size
  • Register once and we will send matches first