Small businesses are being urged to be wary of ‘cowboy’ rating surveyors attempting to profiteer from the recent rates revaluation.The Forum of Private Business (FPB) has issued the warning after experiencing a surge in calls from members complaining about rogue operators. The FPB believes the problem has come about due to the recent revaluation, which decided how much businesses will have to pay in rates over the next five years.
Many smaller firms are unhappy about the Valuation Office Agency’s assessment of their rateable value, which takes effect next month. This is especially because the assessments were carried out in April 2008 – just before property values and rents dropped sharply due to the credit crunch.
This situation has led to a rise in companies offering to reassess businesses’ rateable value, with a view to appealing for a reduction.
Many of these companies are perfectly legitimate ones who offer a worthwhile service; however, the FPB believes some are unscrupulous operators who charge substantial fees with little or no success in bringing their business rates down.
FPB senior member services representative Philip Moody said: “This is a problem that seems to come about every five years after the rates revaluations have been carried out.
“These cowboys spring up and start cold calling businesses offering to get them big reductions on their rates. However, in reality, it’s often the case that any savings they make are minimal and are quickly dwarfed by the fees they charge.”
The FPB’s business rates adviser, chartered surveyor Andrew Bacon of LeaseholdersUnited, added that unscrupulous rating advisers often took advantage of small businesses’ lack of knowledge of the business rates appeals process.
He said: “It can be difficult to check the accuracy of your rateable value if you don’t know what you’re looking for. But this also allows ‘cowboy’ rating advisers to take large upfront fees supported by plausible reasons for reduction or spurious claims of success.
“To help combat this we publish a list of rating surveyors with at least a one-in-three success rate at appeal. If you are approached by someone not on the list, be wary of paying an upfront fee and read their contract wording very closely for hidden charges.”
LeaseholdersUnited’s list of 150 recommended rating surveyors is available to view for free on its website, at www.leaseholdersunited.com.