Rates on Retail Premises.

giveitago

Hi Guys,
Just had the local council in measuring up to assess the rates we have to pay. Anyone know through experience exactly what they take into a account? The guy seemed fairly vague on questioning, probably not wanting to commit himself to anything. I assume its based on location, footfall? Anyway, question is, can anyone on here give me an idea of what they are paying and location. Also, can this be paid in installments or does it need to be in a lump (which won't help)? I am based in the Dublin 8 area, and the unit is about 1200sq ft in total, of which 400sq ft would be storage. Any help would be much appreciated.

mcaul

Rates are based on shop frontage, passing footfall, location, rent, use & value of property. They also take into account rates payable in similar premises nearby.

Example 2000sq ft store in Liffey valley = approx. €60,000 rates
1500 sq ft store in carlow = €8,000
500 sq ft store + 200 storage in Dublin City @ college green = €11,000

kenbrady

mcaul wrote: »

Rates are based on shop frontage, passing footfall, location, rent, use & value of property. They also take into account rates payable in similar premises nearby.

Example 2000sq ft store in Liffey valley = approx. €60,000 rates
1500 sq ft store in carlow = €8,000
500 sq ft store + 200 storage in Dublin City @ college green = €11,000

rates are paid in two installments

PureTallent

I used to work in a place in the blanchardstown shopping centre that paid €550,000 pa for a unit. Im not sure of the exact size but it was ~2,500-3,000 sq feet. I spoke to the surveyor when he was assessing the unit and he said the main factors were size, footfall and annual turnover. Larger units would pay much less per sq foot then smaller ones and businesses with smaller margins would typically pay less per sq foot even if their turnover is high as the shopping centre wants to keep a good variance of shops for customers and not get pigeon holed into fashion for example. Theres no fixed formula and is very specific to each case, thats probably why the guy was so vague.

DubTony

PureTallent wrote: »

I spoke to the surveyor when he was assessing the unit and he said the main factors were size, footfall and annual turnover.

Are you sure about turnover? During the last rates assessment I had turnover was never mentioned. If it is a factor that's pretty sickening. Work hard to develop and drive your business and get screwed even further by a local authority that provides little or nothing for your business.

PureTallent

Im not claiming to be an authority on the subject, but im positive turnover is taken into account in the blanchardstown S.C anyway as ive spoken to other shop managers about it when I found out how disgracefully high the rent was. It helps the smaller more 'niche' businesses with lower turnover stay afloat, again adding to the diversity of the S.C. Mabye its different on the high street, but I can only speak about what ive seen.

AndyJB

Morning all,
There seems to be a little confusion on this one. Rates are payable to the local authorities/town/county councils and are calculated using the unit size and location. In most places it's as simple as (rate per sq mtr x square mtrs).

The issue with payments relating to turnover in the B/town SC is probably to do with rental payments to the landlord that owns the various units and not the council rates.

The council rates would have to be paid as well as any rent payable to the landlord.

Contact the local authority/council rates office for the exact figures involved. You'd need to talk to the landlord/auctioneer on the turnover issue. Be sure to have a good read of the contract small print involved before you sign. There's also an issue where landlord / tenant can opt-in or out of a VAT charge on the lease. Have a chat with your accountant on this one.

Hope this is of some use.

Andy

giveitago

Thanks for the replies guys.