If you’ve ever heard someone say, “It’s a Full Repairing and Insuring lease,” and nodded politely while secretly wondering if that meant you’d be fixing the roof with your own ladder — you’re not alone. FRI leases are a staple of UK commercial property, but they’re also one of the most misunderstood beasts in the legal jungle.
Let’s demystify them — with a little humour and a lot of practical insight.
What Is an FRI Lease, Really?
An FRI lease (Full Repairing and Insuring) is a type of commercial lease where the tenant takes on full responsibilityfor maintaining, repairing, and insuring the property. That includes the roof, the plumbing, the structure, and yes — even the rats, if they’re chewing through the electrics.
Landlords love it. Tenants… well, they need to read the fine print.
Under an FRI lease, the tenant agrees to keep the property in “good and tenantable condition” — which sounds reasonable until you realise that might include fixing pre-existing defects, structural issues, and anything that breaks during the lease, regardless of fault.
Why Landlords Prefer FRI Leases
It’s simple: less hassle, more profit. With an FRI lease, landlords don’t have to worry about maintenance, insurance, or surprise repair bills. The tenant handles it all, which means the landlord can sit back and collect rent while someone else pays to fix the boiler.
It’s a dream setup — unless you’re the one paying for the boiler.
What Tenants Actually Take On
Here’s where things get spicy. Under an FRI lease, tenants are typically responsible for:
- Structural repairs — including walls, foundations, and roofs
- Inherent defects — even if they existed before the lease began
- Insurance — covering the building and sometimes public liability
- Reinstatement — returning the property to its original state at lease end
That means if the roof leaks, the tenant fixes it. If the wiring is dodgy, the tenant replaces it. If the rats move in, the tenant calls pest control. And if the building collapses due to a hidden defect? Yep — still the tenant’s problem.
The Schedule of Condition: Your Legal Lifeboat
Smart tenants negotiate a Schedule of Condition — a detailed report (often with photos) documenting the property’s state at the start of the lease. This can limit your liability by proving what was already broken when you moved in.
Without it, you could be on the hook for repairs to things you never touched — like that mysterious damp patch behind the fuse box.
Real-World Example: The Roller Shutter Saga
A tenant signs an FRI lease on a shop with a broken roller shutter. They assume they’re only responsible for keeping it in the same condition — broken. But the lease says “keep in repair,” which legally means “put into repair.” At lease end, the landlord demands thousands to fix the shutter. The tenant pays — because they didn’t negotiate a Schedule of Condition.
Lesson learned: “keep in repair” means “fix it,” not “leave it as it is.”
Can You Negotiate an FRI Lease?
Absolutely. Tenants can:
- Cap repair costs to avoid unlimited liability
- Exclude structural defects from their obligations
- Limit reinstatement clauses to avoid costly reversals
But you need to negotiate these terms before signing — not after the roof caves in.
Final Thoughts: Read It, Don’t Regret It
FRI leases aren’t evil — they’re just misunderstood. For landlords, they offer peace of mind. For tenants, they offer control and long-term stability — but only if the lease is fair and the risks are clear.
So whether you’re sourcing properties for charities, small businesses, or your own consultancy clients, make sure they understand what they’re signing. Because no one wants to discover they’re legally responsible for a colony of roof rats and a collapsing chimney.