5 ms·

That's probably the case when local municipalities should take care of the situation by making it illegal to have empty storefronts and apartments for a long pe

That's probably the case when local municipalities should take care of the situation by making it illegal to have empty storefronts and apartments for a long periods of time.

another_story 5y ago
Not illegal, but taxes should be higher for unoccupied buildings in commercial areas. That rate could be determined by any number of things, from the tax revenue of other nearby businesses, residential housing prices, etc...
- zihotki 5y ago
  Why not? At the end, fines are another form of taxes. As I mentioned in another comment, in Netherlands there is such law in place. If the apartment is not occupied for a year then you have to report it to municipality and they will arrange something for you. Or you will be fined if you don't report. That law was made to fight with shortage of apartments as well as to prevent squatting. While it's not perfect, it seems to be working. But that is in regards with living apartments, I'm not sure how that applies for office and other business buildings.
chrisseaton 5y ago
> illegal to have empty storefronts and apartments How do you comply with such a law? If nobody wants to rent your space at any price, maybe because it's a terrible location or there isn't the demand to support any business at the moment, what are you supposed to do?
- dfadsadsf 5y ago
  Tax foreclosure and town now owns the building? Happens all the time with abandoned buildings (both residential and commercial) all over the country. The thing though is that there are empty storefronts in very desirable locations including SOHO in NY. There is definitely lots of people who want to rent it - just may be not at 40k/month.
- syops 5y ago
  I don't know the consequences of doing this but I think if no one wants to rent the space at any price then giving up the property seems feasible. The investment went bad. Unused land should go back to the community and be repurposed.
  - chrisseaton 5y ago
    How's the community going to pay your tax?
    - syops 5y ago
      They don't. The property would be sold at auction just like tax foreclosed properties are now sold at auction.
      - chrisseaton 5y ago
        Why would you buy a location that the previous owner had to sell because it came with a crippling tax burden and no source of income?
        syops 5y ago
        Well, presumably because you could buy it at a price that made the investment feasible. That price could be $1. Maybe the land truly is worthless. In which case the auction is for nought. Then the community might decide to form a small playground for the plot of land or a community garden. Maybe the land could be used for housing instead of for commercial purposes.
- zihotki 5y ago
  That's easy. There is a such law for apartments in Netherlands. In NL you have to report apartment to the municipality if it's not occupied for a year and they will arrange something for you. Sure it won't be very profitable or may be even bad for your property if they rent it out as a social apartment, but you had a full year to find a tenant. If you didn't report and they find out - you'll get a good fine. The reason for all this is that the apartment can be easily squatted. And municipalities are not welcoming squatting.

That's probably the case when local municipalities should take care of the situation by making it illegal to have empty storefronts and apartments for a long periods of time.

another_story 5y ago

Not illegal, but taxes should be higher for unoccupied buildings in commercial areas. That rate could be determined by any number of things, from the tax revenue of other nearby businesses, residential housing prices, etc...

zihotki 5y ago
Why not? At the end, fines are another form of taxes. As I mentioned in another comment, in Netherlands there is such law in place. If the apartment is not occupied for a year then you have to report it to municipality and they will arrange something for you. Or you will be fined if you don't report. That law was made to fight with shortage of apartments as well as to prevent squatting. While it's not perfect, it seems to be working. But that is in regards with living apartments, I'm not sure how that applies for office and other business buildings.

chrisseaton 5y ago

> illegal to have empty storefronts and apartments How do you comply with such a law? If nobody wants to rent your space at any price, maybe because it's a terrible location or there isn't the demand to support any business at the moment, what are you supposed to do?

dfadsadsf 5y ago
Tax foreclosure and town now owns the building? Happens all the time with abandoned buildings (both residential and commercial) all over the country. The thing though is that there are empty storefronts in very desirable locations including SOHO in NY. There is definitely lots of people who want to rent it - just may be not at 40k/month.
syops 5y ago
I don't know the consequences of doing this but I think if no one wants to rent the space at any price then giving up the property seems feasible. The investment went bad. Unused land should go back to the community and be repurposed.
- chrisseaton 5y ago
  How's the community going to pay your tax?
  - syops 5y ago
    They don't. The property would be sold at auction just like tax foreclosed properties are now sold at auction.
    - chrisseaton 5y ago
      Why would you buy a location that the previous owner had to sell because it came with a crippling tax burden and no source of income?
      - syops 5y ago
        Well, presumably because you could buy it at a price that made the investment feasible. That price could be $1. Maybe the land truly is worthless. In which case the auction is for nought. Then the community might decide to form a small playground for the plot of land or a community garden. Maybe the land could be used for housing instead of for commercial purposes.
zihotki 5y ago
That's easy. There is a such law for apartments in Netherlands. In NL you have to report apartment to the municipality if it's not occupied for a year and they will arrange something for you. Sure it won't be very profitable or may be even bad for your property if they rent it out as a social apartment, but you had a full year to find a tenant. If you didn't report and they find out - you'll get a good fine. The reason for all this is that the apartment can be easily squatted. And municipalities are not welcoming squatting.