We work with Triebel-Lizorkin spaces F s q L p,r (R n ) and Besov spaces B s q L p,r (R n ) with Lorentz smoothness. Using their characterizations by real interpolation we show how to transfer a number of properties of the usual Triebel-Lizorkin and Besov spaces to the spaces with Lorentz smoothness. In particular, we give results on diffeomorphisms, extension operators, multipliers and we also show sufficient conditions on parameters for F s q L p,r (R n ) and B s q L p,r (R n ) to be multiplication algebras.