Simply said, a semi-commercial property is one that contains both a commercial and a residential component. The dividing line between a semi-commercial property and a commercial property is your intent when you buy the property. If you plan to use it exclusively for business purposes, then it's a commercial property. If you plan to use it for both business and personal reasons, then it's a semi-commercial property. There are two types of semi-commercial properties: those that are zoned for commercial use and those that are not. A property can be used as a residence with some limited on-site storage or maintenance facilities, such as a garage or shed. These types of properties are usually not considered commercial because they cannot be used only for profit. Any income generated from them goes toward paying the mortgage rather than being invested in more commercial property. The other type of semi-commercial property is one that has been designated as commercial by a government agency. Because these properties have been approved for commercial use, any income generated from them can be claimed as tax-deductible business expenses. Semi-commercial properties can be good investments because they tend to be less expensive than fully commercial ones.