When you’re signing a business lease, understanding repairing obligations in commercial leases helps you avoid surprise costs later. Many small business owners feel confused by the legal wording, so here’s a simple breakdown of who pays for what.
In This Article
Why repairing obligations matter
Unexpected repairs can disrupt your budget and take your focus away from your business. If you don’t understand your duties, you might end up paying for work that wasn’t your problem in the first place. Clear terms protect your cash flow and your peace of mind.
The three main types of repairing obligations
Full Repairing and Insuring (FRI) Lease
This is the most common type. You’re responsible for most repairs inside and outside the building. That usually includes the roof, structure, and decoration. You also cover the insurance or repay the landlord’s insurance costs. If the building is older, the repair work can become expensive.
Internal Repairing Lease
Here, your focus is only on the inside of your unit. You deal with things like walls, floors, ceilings, internal fixtures and basic decoration. The landlord takes care of the structure and exterior. This option is often easier for tenants to manage.
Service Charge Repairing
This usually applies in shared buildings. You pay a set share of the costs for external maintenance, roof repairs, and communal areas such as car parks and corridors. The amount is set out in the lease, so it’s important to check how they calculate it.
So who pays for what?
A simple way to think about it is this: you usually pay for anything inside your unit, and the landlord is often responsible for the building itself. But if you’re in an FRI lease, you may be responsible for both. The lease wording decides it, not assumptions, so always check the exact phrasing.
Watch out for this clause
A common line in commercial leases says you must “put and keep the property in repair.” This can be misleading. It may mean you have to fix old problems that existed before you moved in, or bring worn-out areas up to a better condition than they were originally. Many tenants don’t expect this, so it’s important to understand what it means before you sign.
Why you need a Schedule of Condition
A Schedule of Condition records the property’s condition at the start of your lease. With this in place, you only need to return the property in the same state at the end. Without it, you could be held responsible for damage you didn’t cause. It’s a simple step that can save you a lot of money.
Repairs during the lease
If something breaks while you’re operating the business, your responsibility depends on where the problem is and what type of lease you have. Issues inside your premises are usually yours to fix. Structural or external issues depend on the type of repairing obligation you agreed to. Your solicitor will check the wording so you don’t take on repairs that aren’t yours.
Repair costs at the end of the lease
When the lease ends, you may be asked to repair damage, repaint walls, remove signage or return the property to its original layout. This is known as dilapidations. You shouldn’t be asked to pay for wear and tear or old defects that fall outside your repairing obligations. A solicitor can challenge unfair requests and negotiate a fair outcome.
How Onyx Solicitors supports you
Your priority is running your business, not worrying about legal traps. We help you understand your repairing obligations before you sign, and we step in if there’s a dispute during or at the end of the lease. You get clear advice, fixed-fee options and support that helps you avoid avoidable costs.
Contact us today at 0121 268 3208 or via email at info@onyxsolicitors.com for a FREE consultation. Let us help you achieve the peace of mind that comes with having expert legal support on your side.
