NEVER FALL IN LOVE WITH A BUILDING
– Jonathan Harvey OBE, Co-Founder of ACME Studios
- Work out the maximum you can pay, taking all costs into account, and if you are not sure, say ‘NO’.
- If you are in a group, all members need to be reliable people who will do their bit.
- Make sure you are business-like in your dealings with potential landlords, agents, etc. and get to appointments on time. The clichés about artists still abound so best to prove them wrong straight away.
- If you are offered a property, get some experienced help looking at any tenancy / lease on offer.
- If a rent is suggested, what additional costs are there: insurance, service charges, business rates? What is the rent review procedure?
- Always worth asking for a rent free period – especially if the property needs some repairs. Negotiate!
- Remember that all space has to be paid for. If space is set aside for a meeting room/gallery/storage space/workshop, how will it be financed?
- Rent review: Always check when the next rent review will be and how it will be calculated. If it is an ‘open market’ rent it means your rent could increase in line with similar properties. What is a low rent now could increase considerably.
- Service charge: The service charge can be as much as the rent. Ask how much the charge has been in previous years. Ask if there are any major upcoming repairs that will be recharged through the service charge (worth asking for a cap on this).
- Notice period: Check how much notice you will need to give before you can leave. If things go wrong, you want to be able to get out fast.
- Rates: If your rent does not include business rates, you will need to add this to your costs. The rates are calculated using the rateable value which you can find at www.voa.gov.uk. Search by postcode to find the rateable value of your building.
- Contact your local council / look online to find the correct multiplier. Check to see if you qualify for the small business multiplier. Multiply your rateable value by the correct multiplier to see what you will pay.
- If you are a registered or exempt charity, you may be eligible for mandatory rate relief. Mandatory rate relief is currently 80%.
- If the rateable value of your building is less than £12,000, you may be eligible for small business rate relief. Small business relief is 100% until April 2014, then 50%.
- Some councils will consider discretionary rate relief where your artistic activity fulfils certain requirements. The requirements usually involve education and/or community engagement. Contact your local council for information.
- If you get through all of that… Well done!! It is amazing to have your own space.