Charity shops have become an increasingly interesting investment for many local property investors. Whilst from the outside they look just like any other High Street Retail shop but when you dig into their business model, you will see the attraction.
- charity shops don’t pay for their stock, it’s nearly all donated;
- the majority of the staff are non-renumerated volunteers; and
- as a charity, they receive a mandatory 80% business rates relief (which can be topped up to 100% with local authority discretion)
Once you remove these costs from their expenses, they have very few outgoings. Therefore unlike other High Street Retailers, are much more able to make and keep making their rental payments.
Whilst they may not offer the highest yields, they are worth a look for the savvy investor.
Photo by Prudence Earl on Unsplash
