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Get a 7.5% allowance on rates for rental properties

If you are responsible for rates on one or more rental properties, you may be entitled to a 7.5% allowance on rates. This is known as 'landlord' status.

How to qualify for the 7.5% allowance in rates

To qualify, you must meet the following criteria as set out in Article 20 of the Rates (Northern Ireland) Order 2006:

  • have a portfolio of one or more properties that you rent to tenants
  • be able to provide Land & Property Services (LPS) with a current tenancy agreement for each of these properties
  • have domestic properties with capital Values (CV) not exceeding £150,000 and / or business properties with Net Annual Value (NAV) not exceeding £1,590

How to apply

If you feel that you meet all the necessary criteria you can apply to LPS. You must complete and return the relevant form to LPS. This is a writeable document, which means that you can complete on screen, print and send to LPS. Alternatively, you can save the document to your desktop, complete the form and send as an attachment to LPS landlords section - contact details are at the bottom of the page:

You can also contact your local LPS rating office who can deal directly with your request or issue you with a form. Contact details for LPS rating offices can be found in the link below:

Successful applications

If you meet the qualifying criteria, you will be granted landlord status. LPS will then:

  • amend your rate account to reflect that you are entitled to the 7.5% allowance
  • issue you with a new bill (unless you have already paid your current rate bill(s)

Rejected applications

If you do not meet the qualifying criteria, LPS will contact you to let you know. If LPS needs more information, they will contact you directly.

How to add another property to an existing rate bill

If you wish to add another rental property to your portfolio, you can complete and return the relevant form to LPS. This is a writeable document, which means that you can complete on screen, print and send to LPS. Alternatively, you can save the document to your desktop, complete the form and send as an attachment to LPS landlords section - contact details are at the bottom of the page:

You can also contact the landlords team who can deal with your request directly. Contact details for LPS landlords section are at the bottom of the page.

What happens if you add a new property after 30 September?

If you add another property to your portfolio after the 30 September, you will be issued with a bill for this individual property. To avail of the 7.5% allowance, payment must be received by LPS by the date quoted on the bill, which will be one month from the date the bill was issued. If payment is not received by this time the allowance will not be awarded

Vacant properties

If one of your rental properties becomes vacant, you may not have to pay rates on this property.

A property is considered vacant if it is entirely unfurnished. It must contain no furniture whatsoever. Therefore, if a property contains a single chair or a single table it will be considered furnished and this exemption will not apply.

If you wish to claim exemption from rates on a vacant property, you must complete and return a vacancy application form to LPS. This form will tell you the terms of a vacancy and what is required of you throughout the vacant period. You can download the form using the link below. The form is writeable, which means that you can either print the necessary details and then print it off, or download the form first and complete it. The completed form should then be returned to the address shown at the bottom of the form:

You can also contact the landlords team who can issue a form to you. All vacancy applications must have a form completed. Contact details for LPS landlords section are at the bottom of the page.

You must continue to the pay the rates for the property until the property has been verified as being vacant. You will need to complete and return an application form and an inspection of the property may be carried out.

If a vacancy is granted you may be entitled to a refund on any overpayment made for the property.

Rating of empty homes from October 2011

From 1 October 2011 the same level of rates will be due on all domestic properties whether occupied or empty.

How are rental properties affected?

The main impact will be on landlords who currently have an Article 20 account and receive a 7.5 per cent allowance. From 1 October 2011 these landlords, will have to pay 100 per cent of the rates due when the property is empty and no allowance will be awarded for that period.

Landlords can choose to move to a different rate account that offers an allowance of 15 per cent. In almost every circumstance after 1 October 2011 landlords will benefit from moving to the 15 per cent allowance as they will receive a higher rate of allowance whether the property is occupied or empty.

Land & Property Services must receive your application by 30 September 2011 if you wish to transfer to an Article 21 account to receive the 15 per cent allowance for the rating period from 1 April 2011 to 31 March 2012.

You can find more information on landlords rating accounts and the impact of the rating of empty homes on rental properties in the link below:

Change of ownership

If the ownership of one of your properties changes you must provide written details of the new owner to LPS. Please send this to:

Land & Property Services
Central Landlords Team
Lincoln Building
27 - 45 Great Victoria Street
Malone Lower
BELFAST
BT2 7SL

You can also contact the landlords team who can deal with your query directly. Contact details for LPS landlords section are at the bottom of the page.

You should do this immediately otherwise you will continue to receive a rate bill for this property.

Providing proof of change of ownership

You must provide a copy of the solicitor’s letter showing the following:

  • completion date of the sale
  • name and contact details of the new owner or name of the solicitor / estate agent who acted on behalf of the new owner

How to pay your rate bill

For full details on how you can pay your landlord’s rate account, please click on the link below:

  • How to pay your rate account for rental properties

Contact details for landlords section