Mixed Use Property Management
A shop below and flats above is two legal regimes in one building. Most agents run it as a residential block with a commercial tenant bolted on, and the service charge apportionment is where it falls apart.
Get a mixed use management quote
Tell us the unit mix and we will send a written fee proposal with schedule structure.
Where mixed use buildings go wrong
- One undifferentiated service charge pot, so leaseholders subsidise commercial plant and vice versa
- Commercial rent review and lease events handled by nobody
- Residential statutory consultation missed because the works were treated as commercial
- One insurance policy that under-declares the commercial use and risks avoidance at claim
- Fire strategy that ignores the interface between the commercial demise and the residential escape route
How we structure the service charge
| Schedule | Costs | Who pays |
|---|---|---|
| Schedule A — whole building | Structure, building insurance, external repair | All lessees by floor area or lease percentage |
| Schedule B — residential only | Lifts, communal lighting, cleaning, door entry | Residential lessees only |
| Schedule C — commercial only | Shopfronts, commercial refuse, plant serving the units | Commercial tenants only |
Schedules are set from the leases, not from convenience. Where leases conflict we say so in writing before taking the instruction.
Two compliance regimes, one building
Residential leaseholders get section 20 consultation, section 21/22 rights to inspect, and statutory service charge accounting. Commercial tenants get none of that but do bring the duty to manage asbestos, business rates, and their own repairing obligations.
We run both calendars from the same system so a roof project is consulted with the flats and recharged to the shops under the correct schedule at the same time.
Frequently asked questions
Can the commercial units be excluded from section 20 consultation?
Yes. Section 20 protects residential leaseholders only. But the qualifying works threshold is calculated on the residential contribution, so the apportionment has to be right before the notice goes out.
Do you handle commercial rent reviews and lease renewals?
We manage the process and instruct valuation and legal advisers where required, so the lease events are diarised rather than discovered late.
How is insurance handled in a mixed use building?
One block policy that properly declares the commercial trade, with the sum insured from a current reinstatement cost assessment and the premium apportioned across the schedules.