Full Repairing and Insuring Lease: Who Pays for Commercial Property Repairs?

Responsibility for commercial property repairs is not determined simply by who owns the building or where the problem has occurred. The starting point is the lease, including its repair, service charge and insurance provisions.

What does a full repairing and insuring lease cover? 

A full repairing and insuring lease, often shortened to an FRI lease, usually places responsibility for repairing the property and meeting the cost of building insurance on the tenant. 

If the tenant occupies an entire building, it may be directly responsible for repairing the interior, exterior and structure. The landlord will often arrange the building insurance and recover the premium from the tenant. 

The arrangement may work differently where the premises form part of a larger building or estate. The landlord may repair the roof, structure and shared areas but recover a proportion of the cost from the tenants through the service charge. The tenant may therefore bear the cost without arranging the work itself. 

The description “full repairing and insuring” is only a starting point. The practical effect depends on the wording of the lease, the extent of the property included in the letting and the costs recoverable through the service charge. Tenants should therefore look beyond the label and establish precisely which parts of the property they must repair, the standard they must meet and which of the landlord’s costs they may be required to contribute towards. 

Who is responsible for repairs in a commercial lease? 

The lease should divide the commercial lease repair obligations between the landlord and tenant. These obligations need to be read together because responsibility for arranging the work and responsibility for paying for it may rest with different parties. 

A tenant’s responsibilities may include: 

• keeping the premises in repair; 

• servicing heating, cooling and electrical systems; 

• replacing items that are beyond repair; 

• decorating at specified intervals; 

• maintaining pipes and equipment serving the premises; and 

• notifying the landlord of damage or defects. 

The wording of the repair clause is important. An obligation to put and keep the premises in repair may require the tenant to remedy an existing defect before continuing to maintain the property. In some circumstances, an obligation to keep premises in repair may also require work to bring them up to the standard required by the lease. 

A tenant may therefore become responsible for a problem it did not cause. This is particularly important when taking older premises or a property that has not been well maintained. 

What is a landlord responsible for in a commercial lease? 

In a multi-let property, the landlord commonly retains control of the structure, exterior, roof and shared areas. It may also maintain equipment serving more than one occupier. 

However, this does not necessarily mean that the landlord bears the cost. The service charge provisions may allow some or all of the expenditure to be recovered from the tenants. A tenant should not assume that the landlord will pay simply because the landlord arranges the work. 

Equally, a landlord should not assume that every repair cost can be passed on. The right to recover expenditure must be supported by the service charge provisions in the lease. 

The lease should also explain when the landlord may enter the premises to inspect their condition or carry out work. If the tenant fails to comply with its repair obligations, the landlord may have the right to serve notice and, in some cases, enter the property to complete specified work and recover the cost. The landlord must check that the lease gives it the necessary rights and follow any applicable notice procedure before taking action. 

How can a schedule of condition limit repair liability? 

A schedule of condition is a written and photographic record of the state of the premises, usually prepared before the lease begins. It may identify existing issues such as damp, cracked surfaces, damaged flooring, corrosion or worn fixtures. 

Its purpose is to provide evidence of the property’s condition when the tenant takes possession. However, attaching photographs to the lease does not, by itself, alter the tenant’s repair obligations. 

For the schedule to provide effective protection, the repair clause must explain how it limits the tenant’s responsibility. The lease might state, for example, that the tenant is not required to put or keep the premises in any better state of repair or condition than shown in the schedule. 

A schedule of condition for a commercial lease should therefore include: 

• clear written descriptions of the property’s condition; 

• dated photographs covering all relevant areas; 

• an accurate record of existing defects; and 

• lease wording expressly limiting the repair obligation by reference to the schedule. 

A schedule of condition does not normally remove all responsibility from the tenant. The tenant may still be required to prevent the property from deteriorating beyond its recorded condition and comply with separate obligations relating to maintenance, decoration, safety or legal requirements. 

A building surveyor will usually inspect the premises and prepare the schedule. The tenant’s solicitor should then ensure it is properly incorporated into the lease and that the repair clause gives it the intended effect. 

Managing commercial property repairs during the lease? 

Repair obligations should not be filed away once the lease has been completed. Both parties should keep the condition of the property under review throughout the term. 

A tenant should understand which parts of the premises it must inspect, maintain and repair. Minor defects can become more expensive if left unresolved, and a failure to service equipment may cause wider damage. Records of inspections, servicing and completed work should be retained. 

If damage may be covered by the building insurance, the tenant should notify the landlord promptly and follow the procedure set out in the lease. The tenant should not arrange substantial work without first checking whether the landlord’s consent is required or whether an insurance claim should be made. 

A repair can also become an alteration if it changes the design, materials or layout of the property. The tenant should check whether consent is required before replacing equipment or making physical changes. 

For landlords, regular inspections can help identify deterioration before it becomes more serious. Any inspection must comply with the notice and access provisions in the lease and should minimise unnecessary interference with the tenant’s business. 

In a multi-let building, the landlord should communicate clearly about substantial repair projects, the proposed timetable and how the cost will be divided. Tenants should review service charge budgets and supporting information so that they understand the expenditure being recovered. 

Clear lease wording, an accurate record of the property’s starting condition and early attention to defects can help prevent a manageable repair from becoming a costly dispute. 

Full repairing and insuring lease: frequently asked questions 

What is an FRI lease? 

FRI is the commonly used abbreviation for a full repairing and insuring lease. It usually places extensive responsibility on the tenant for repairing the premises and meeting the cost of building insurance, but the label does not determine the precise obligations. These must be established from the repair, insurance and service charge provisions in the lease.

Who is responsible for roof repairs in a commercial lease? 

It depends on the extent of the premises let and the wording of the lease. If the tenant occupies the whole building, the roof may form part of the property it is required to repair. In a multi-let building, the landlord may arrange roof repairs and recover the tenant’s contribution through the service charge. 

Can a tenant be responsible for defects that existed before the lease? 

Yes. Depending on the repair clause, the tenant may be required to remedy existing disrepair even though it did not cause the problem. A survey and a properly incorporated schedule of condition may help identify and limit that exposure. 

Can a landlord recover the cost of major works through the service charge? 

Only where the service charge provisions in the lease allow it. A landlord that arranges work to the structure, roof or shared areas may be able to recover a proportion of the cost from the tenants, but the right to recover must be supported by the lease wording. Tenants should review service charge budgets and supporting information before major works begin. 

Who should prepare a schedule of condition? 

A building surveyor will usually inspect the premises and prepare the written and photographic schedule. The tenant’s solicitor should ensure that the schedule is attached to the lease and that the repair clause gives it the intended legal effect. 

Next reads

• EPC Commercial Property: Green Leases and Energy-Efficiency Improvements

• Dilapidations: Seven Steps Before a Commercial Lease Ends

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Disclaimer 

This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority. 

Last updated: 27 October 2026