BLOG: What should commercial landlords do with their ‘above the shop’ problem?
Summary
The article argues that commercial landlords with incidental residential holdings need to treat those assets as a distinct operational and compliance burden, not as an extension of commercial property management. It highlights the growing complexity of residential tenancy regulation, the risks of fragmented records and reactive management, and the need for a portfolio-level review of whether to retain, refurbish or dispose of such properties.
Why it matters
Residential surveyors may be asked to assess mixed-use assets, advise on compliance, condition and strategy, or support owners who are unfamiliar with residential management obligations. The piece also underlines how poor management of upper-floor homes can create risks for both the residential element and the commercial premises below.
Key points
- Commercial landlords often inherit residential units through mixed-use ownership or freehold acquisition.
- Residential management requires dedicated systems for tenancies, repairs, safety checks, deposits and licensing.
- The article cites the RICS Commercial property management in England and Wales guidance note on the differences between commercial and residential occupiers.
- Recent changes under the Renters’ Rights Act and other residential compliance duties increase operational complexity.
- Owners should review each asset for income, cost, condition, risk and strategic value rather than retaining properties by default.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
