What Are My Legal Responsibilities for Repairs and Maintenance in a Commercial Lease?
Commercial landlords in the UK often face uncertainty over who is legally responsible for maintaining, repairing, and insuring a commercial property.
This confusion is widespread in the context of Full Repairing and Insuring (FRI) leases, where tenants may assume greater responsibility than in residential tenancies.
Understanding your legal obligations—and where a tenant’s begin—is critical to avoiding disputes, complying with statutory duties, and preserving the value of the property.
This article outlines everything commercial landlords need to know about repair and maintenance responsibilities under UK law, with a focus on FRI lease terms, statutory obligations, and liability for different parts of the building.
Understanding Commercial Lease Structures
Unlike residential tenancies, commercial leases are primarily governed by contract law. This means the obligations of the landlord and tenant will mostly depend on the written lease agreement, although some legal duties are implied by statute.
Most modern commercial leases fall into one of two categories:
- FRI Lease (Full Repairing and Insuring): The tenant assumes responsibility for repairs and insurance of the premises.
- Internal Repair Lease: The landlord retains responsibility for structural and exterior repairs, while the tenant is responsible for maintaining only the interior.
Knowing which category your lease falls under is the first step in assessing your repair obligations.
The Full Repairing and Insuring (FRI) Lease
An FRI lease is the most common type of lease for commercial properties in England and Wales. It transfers nearly all repair and maintenance obligations to the tenant, including:
- Internal and external repairs
- Structural integrity
- Roof and guttering
- Windows and doors
- Fixtures and fittings
Under a standard FRI lease, the landlord is usually only responsible for:
- Major capital works, if excluded by negotiation
- Rebuilding in case of destruction (often covered by insurance)
- Insurance procurement (recharged to the tenant)
- Ensuring the lease complies with legal obligations (e.g., asbestos records, gas safety where applicable)
However, despite appearing comprehensive, the wording of the lease is everything. For example, if the lease obliges the tenant to keep the property “in good repair,” this includes an obligation to put it in good repair—even if it was in poor condition at the start of the lease.
Key Areas of Repair Responsibility
Structural Repairs
Whether the landlord or the tenant is liable for structural repairs (e.g., foundations, load-bearing walls, roof) depends entirely on the wording of the lease.
In most FRI leases, this responsibility passes to the tenant. However, in multi-let buildings such as office blocks, the landlord may retain responsibility for common structural elements and recover the cost via a service charge.
External Repairs
Elements such as brickwork, rendering, exterior paintwork, gutters, and windows are commonly included in the tenant’s responsibilities under an FRI lease. Again, where the lease is not FRI or has been modified, the landlord may need to address these areas.
Internal Maintenance
This usually includes:
- Floor finishes
- Ceilings
- Plasterwork
- Internal doors and fittings
- Fixtures like toilets, lighting, or electrical systems
Tenants typically maintain these in all commercial leases unless otherwise specified.
Common Parts in Multi-Let Properties
In multi-tenanted properties, landlords often retain control and responsibility for the structure and standard parts (such as stairwells, lifts, and shared hallways) and recover the costs through a service charge paid by tenants.
Service Charges and Maintenance Costs
Where the landlord retains responsibility for certain repairs or areas, these costs can be recouped through a service charge, provided this is stated in the lease. A service charge clause allows the landlord to:
- Perform maintenance on communal or structural parts
- Charge tenants a fair proportion of costs
- Plan and execute long-term works via a reserve fund
However, landlords must act reasonably in how and when these costs are incurred and distributed.
Statutory Repair and Health & Safety Obligations
Landlords have legal responsibilities that extend beyond the terms of the lease. These include statutory obligations under various laws:
Health and Safety at Work Act 1974
Landlords must ensure that premises under their control do not endanger the health and safety of occupants or visitors. This often applies to communal or structural areas retained under landlord control.
Control of Asbestos Regulations 2012
If the landlord retains control over the structure or common areas, they are responsible for:
- Asbestos surveys
- Managing or removing asbestos-containing materials
- Notifying and training tenants and contractors if needed
Regulatory Reform (Fire Safety) Order 2005
The “Responsible Person”—often”the tenant in a sole-occupancy building—must carry out a fire risk assessment. However, if the landlord retains control over standard parts, they become the Responsible Person for those areas.
Electrical and Gas Safety
Landlords may be liable for the safety of electrical and gas installations in areas under their control. In tenant-controlled areas, the duty typically falls to the tenant; however, this should be clearly stated in the lease.
Dilapidations and End-of-Lease Repairs
One of the most disputed areas in commercial property is dilapidations—the legal claim a landlord may bring against a tenant for failing to comply with lease repair obligations at the end of the term.
Landlords can serve a Schedule of Dilapidations, listing the repairs and reinstatement works they believe the tenant is liable for. If unresolved, the matter can proceed to court or arbitration.
To minimise disputes:
- Conduct a Schedule of Conditions at least from the outset
- Include clear definitions in the lease
- Engage building surveyors before and after tenancy
Negotiating Fair Lease Terms
Tenants are often at a disadvantage when entering a lease if they do not understand the implications of “full repairing” clauses. As a landlord, it’s in their interest to:
- Provide transparency on the condition of the property
- Offer a Schedule of Conditions to avoid future disputes
- Clearly define what is and isn’t defined under “repair”
This “fosters trust and can help mitigate costly legal challenges in the future.
Summary: Know Your Legal Duties
A commercial landlord’s responsibilities for repairs and maintenance depend on the lease terms, statutory law, and practical control of the building. In an FRI lease, most of the responsibility is passed to the tenant, but landlords must remain aware of:
- Statutory compliance (asbestos, fire, health & safety)
- Repairs to common or retained areas
- Costs recoverable via service charges
- Liability at the end of a lease (dilapidations)
Maintaining accurate records, seeking legal advice when drafting leases, and communicating effectively with tenants can help protect your investment and minimise future disputes.
FAQs: Legal Repair and Maintenance Duties in Commercial Leases
Am I legally required to provide a property in good condition before the lease starts?
Not necessarily. Unless the lease specifies, there is no implied obligation to deliver the property in good condition. However, tenants may refuse to take on repair obligations for a property in disrepair unless a Schedule of Conditions is used.
What is a Schedule of Conditions, and why is it important?
A Schedule of Condition is a photographic or written report documenting the property at lease commencement. It can protect the tenant from liability for pre-existing damage and help clarify repair obligations for both parties.
Can I charge tenants for structural repairs?
Yes, under a Full Repairing and Insuring lease. However, in multi-let buildings, you may need to fund the repairs and recover costs via service charges. Your lease must allow for this.
Who pays for repairs if the damage is due to a tenants?
The tenant is responsible. Most leases will stipulate that the tenant must maintain the property in good order and repair it, and not cause any damage. Deliberate or negligent damage by the tenant will always be their responsibility.
What happens if a tenant fails to carry out repairs?
You may be able to enforce the lease terms through a Schedule of Dilapidations, claim damages, or, in some cases, carry out the work yourself and recover the costs (known as a “Jervis v Harris clause”).
Am I responsible for fire safety compliance?
Only in parts of the building that remain under your control (e.g., stairwells, entrances). For single-occupancy units, the tenant is typically the “Responsible Person.” Always clarify roles in the lease.
What if the lease is silent on a particular repair responsibility?
If the lease does not address it, courts will interpret obligations based on common law and the parties. This can be risky. It’s so important to include explicit clauses covering all foreseeable scenarios.
Do I need to insure the building?
Yes, under most FRI leases, landlords arrange the insurance and pass the premium cost to the tenant. However, if the lease is silent, you may be held fully responsible and financially exposed.
What’s the best way to prevent disputes about repairs?
Use precise lease wording, conduct regular inspections, maintain open communication, and consider professional reports such as Schedules of Condition and interim dilapidations.
Can I be fined for failing to meet statutory duties, even if the lease passes responsibility to the tenant?
Yes. Legal obligations under health and safety, asbestos, and fire regulations remain with the party who has control over the relevant part of the premises, regardless of lease clauses. Failure to comply can lead to fines or enforcement action.
Understanding and defining your repair and maintenance responsibilities as a commercial landlord is vital not just to protect your property but also to ensure compliance with the law and avoid costly disputes.
Preciser lease drafting, legal advice, and proactive property management are your best tools for meeting your obligations.
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