How to Sell a Mixed-Use Property: A Complete Guide for Landlords

Selling a mixed-use property, which includes both commercial and residential units, can be a bit more complex than selling a purely residential or commercial property. However, with the right approach, you can make the process smoother, faster, and more profitable. Whether you are looking to sell a property that includes shops and flats, or office space with residential units above, this guide will walk you through everything you need to know about selling your mixed-use property.

What is a Mixed-Use Property?

A mixed-use property combines both residential and commercial elements within the same building or complex. For example, a building with shops or offices on the ground floor and residential apartments above. These types of properties are increasingly popular with investors due to their ability to provide multiple income streams from both residential rents and commercial rents.

While selling a mixed-use property may seem straightforward, it often comes with additional challenges. The commercial aspect of the property may require more attention in terms of valuations, tenancy agreements, and the type of buyer you attract. This article breaks down the important steps to help you successfully sell your mixed-use property.

Step 1: Understand Your Property’s Value

Before you decide to sell, it’s important to know how much your property is worth. Unlike standard residential properties, mixed-use properties require a slightly different valuation process because of the combination of commercial and residential units.

Key Factors to Consider in Valuation:

1. Rental Income: A large part of your property’s value will come from the rental income, both residential and commercial. Investors will want to know the current lease agreements and income from both sectors.

2. Tenant Profiles: The stability of the tenants is an important factor. Long-term, reliable tenants are more attractive to investors and can positively affect the price.

3. Market Demand: Demand for both the residential and commercial elements will affect how the property is valued. For example, commercial spaces in busy areas will have higher value.

4. Property Condition: The condition of both the commercial and residential spaces will impact its market value. You’ll want to ensure the property is in good shape before listing it for sale.

5. Planning and Zoning Regulations: The zoning laws in your area can have an impact on the future potential of the property. If the property can be converted or developed in the future, it may be more valuable.

Having a professional valuation from an experienced property agent or chartered surveyor can help set a realistic price for your property. It’s a critical first step, as a fair and accurate price will attract the right buyers.

Step 2: Get Your Paperwork in Order

Selling a mixed-use property involves extra paperwork compared to selling purely residential or commercial properties. Here are the key documents you’ll need to have in order:

• Title Deeds: Proving your ownership of the property and any restrictions on its use.

• Lease Agreements: This includes all current residential and commercial tenancy agreements. Make sure you have updated contracts, including terms, rent schedules, and any clauses specific to your property.

• Building Regulations and Planning Permission: If you’ve made any changes or renovations to the building, you’ll need to provide proof that the property complies with building regulations and has the necessary planning permissions for mixed-use development.

• Energy Performance Certificate (EPC): A current EPC rating is required for any sale of the property.

• Tax Records: Landlords may also need to provide tax records, including property taxes and VAT if applicable.

If your property has a mix of tenants (residential and commercial), you’ll also need to ensure that all leases are up to date and fully enforceable. This may require some legal advice to make sure everything is in order.

Step 3: Prepare the Property for Sale

Preparation is key when selling any property, but mixed-use properties may require additional steps to ensure it’s attractive to potential buyers.

1. Ensure Residential and Commercial Units Are Separate: Buyers may prefer a property where the residential and commercial units are clearly defined and have separate entrances. If you haven’t already done so, consider adding clear distinctions, like separate utilities or entrances, to make it easier for a potential buyer to manage the different units.

2. Improve Curb Appeal and Interior: First impressions matter. A well-maintained commercial frontage and clean, inviting residential spaces can significantly increase the attractiveness of your property.

3. Update Commercial Spaces: Many buyers are looking for commercial properties that are ready to move into or that don’t require too much investment. Consider giving the commercial spaces a fresh coat of paint, repairing any damage, and updating signage if needed.

4. Fix Structural Issues: Both residential and commercial tenants expect properties to be safe and well-maintained. Address any repairs or maintenance issues before listing the property.

Step 4: Market the Property to the Right Buyers

Unlike residential properties, mixed-use properties appeal to a different type of buyer. They can include:

• Property Investors: These buyers are looking for properties with multiple income streams. They’ll be particularly interested in the rental income your property generates from both residential and commercial tenants.

• Developers: If there’s potential for future development (e.g., converting commercial space into additional residential units), developers may be interested in purchasing.

• Owner-Occupiers: Some buyers may wish to run their own business from the commercial space while living in the residential part of the building.

When marketing your property, ensure that you highlight the mixed-use nature of the property and its potential for multiple revenue streams. Be sure to include:

• High-quality photographs and floor plans of both the commercial and residential spaces.

• Clear and concise descriptions of current tenants and their terms.

• Benefits of the property, such as location, income-generating potential, and investment opportunities.

Step 5: Selling to a Cash Buyer

Selling a mixed-use property can take time, especially if you’re waiting for the right buyer who is willing to navigate the complexities of the sale. If you want a quick sale and avoid the lengthy process of dealing with traditional buyers, you may consider selling to a cash buyer like Sell Building Fast.

Benefits of Selling to a Cash Buyer:

• Quick Sale: No waiting for mortgage approvals or long negotiations. Cash buyers can close a deal in a matter of days.

• No Fees: Skip the agent commissions and fees associated with traditional sales. A cash buyer typically takes care of all fees.

• Certainty: With cash buyers, you can be confident the deal will go through without the risk of it falling apart.

• Simple Process: Selling to a cash buyer means you don’t have to deal with multiple offers, lengthy paperwork, or buyers backing out.

At Sell Building Fast, we specialize in buying mixed-use properties and can make you a cash offer for your property. Whether you're dealing with tenants, commercial leases, or just want a quick sale, we offer a straightforward, hassle-free process.

Step 6: Finalize the Sale

Once you’ve found a buyer, it’s time to finalize the sale. You’ll need a property solicitor to handle the legal aspects of the transaction, including drafting contracts, transferring titles, and ensuring that all necessary paperwork is filed correctly with the Land Registry.

Once the deal is completed, the buyer will take over the property, and you’ll receive your payment.

Conclusion: Selling a Mixed-Use Property

Selling a mixed-use property is a unique process, but with the right preparation and the right buyer, you can make it a profitable and smooth transaction. Whether you decide to sell through a traditional route or prefer the speed and certainty of a cash buyer, knowing the steps involved and having the right professionals by your side will ensure success.

If you're looking for a quick and easy sale for your mixed-use property, Sell Building Fast can help. We specialize in purchasing properties with both commercial and residential units, and we can provide you with a no-obligation cash offer today.

Contact Us Today

Interested in selling your mixed-use property? Get in touch with Sell Building Fast for a quick, hassle-free cash offer. You can reach us by phone, email, or fill out our online form for a fast response.