The Balinese traditional houses in Ubud tourism area have an important role as a place for shelter, socializing and performing religious rituals. Due to the modernization and development of tourism, residential units also developed into a commercial function resulting in tendency shifts and changes in residential land use. The purpose of this article, to describe the use of occupancy for commercial functions as well as its impact in the community in Ubud area. This research uses qualitative method and the paradigm used is naturalistic. The functions of space in the house are modified and adjusted to suit the present conditions, but some are retained. A commercial function can support incomes, which increased well-being and housing consolidation. Adaptations and modifications were carried out on land that has not been used previously, such as the area of the front and the back of the residential units. The mindset of the people due to modernization seemingly affecting the way people thinking in utilizing their residential lands, which is more likely to see the economic reason.