{"id":185999,"date":"2024-01-24T16:59:27","date_gmt":"2024-01-24T16:59:27","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=185999"},"modified":"2024-01-29T06:21:17","modified_gmt":"2024-01-29T06:21:17","slug":"key-points-commercial-tenant-fri-lease","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-points-commercial-tenant-fri-lease\/","title":{"rendered":"Three Key Points a Commercial Tenant Should Know About a FRI Lease"},"content":{"rendered":"\n<p>When you enter a commercial lease on a commercial property, you will have repair and maintenance obligations.\u00a0These can vary between leases. However, most commercial leases are full-repairing and Insuring commercial leases (FRI Leases). A FRI commercial lease can benefit both a commercial landlord and a tenant. For the latter, as their property is their investment, it helps retain the value.\u00a0As a commercial tenant, you can rest assured that your commercial premises are insured and in good repair while you do your business.\u00a0This article will explain three key points you need to know about a full repairing and insuring commercial lease, such as what to look out for in the <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/lease-clauses-landlords\/\">lease terms<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FRI Lease Key Points <\/h2>\n\n\n\n<p>A complete Full Repair and Insuring commercial lease (FRI lease) is where the landlord passes the repair, <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/maintenance-repairs-lease\/\">maintenance<\/a>, and insurance costs to the commercial tenant and the responsibility for carrying out repairs.\u00a0 <\/p>\n\n\n\n<p>Below are three key points to help you understand a full repairing and insuring lease.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Tenant Maintenance Responsibilities<\/h2>\n\n\n\n<p>While a FRI lease is one where you, as the commercial tenant, have liability and cost <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/repair-obligations-commercial-tenants\/\">responsibility for repairs<\/a> and insurance for the business premises, the landlord still has some duties.\u00a0You are responsible for repairing the part of the premises demised to you in your lease.\u00a0The landlord will have to repair areas of the property, not demised to you in your commercial lease, such as if you rent part of the property.\u00a0<\/p>\n\n\n\n<p>This can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>structure;<\/li>\n\n\n\n<li>external parts; and<\/li>\n\n\n\n<li>car parking areas.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Your landlord must also arrange the insurance, even though you pay for it.\u00a0They may charge you insurance rent to recover this.<\/p>\n\n\n\n<p>Therefore, the lease agreement must clarify each party\u2019s responsibilities. Otherwise, there is potential for disagreement. Also, as a commercial tenant, you will want to be sure you can meet the costs of your responsibilities before you enter the lease, and you should get legal advice about this.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex 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FRI Lease Insurance<\/h2>\n\n\n\n<p>As established, you are responsible for paying insurance for your commercial lease, but your landlord must arrange it.&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/03024102\/LegalVision_UK-Supplier-Contracts-Checklist.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Supplier Contracts Checklist<\/div>\n            <div class=\"body-text\">\n                <p>Download this free Supplier Contracts Checklist to ensure your contracts will meet your business\u2019 needs.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/supplier-contracts-checklist.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<p>However, you should note some other key points about insurance in a full repairing and insuring lease. These are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>where insurance covers the repairs needed for damage to your commercial premises, you do not need to fix them;<\/li>\n\n\n\n<li>there are some repairs insurance will not cover, so your lease agreement may say how the landlord will share the cost of these; and<\/li>\n\n\n\n<li>where a lease agreement does not specify repairs not covered by insurance, you, as the tenant, are responsible.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. Repair Standard&nbsp;<\/h2>\n\n\n\n<p>Whilst you, as a tenant, are responsible for the costs of repairs in your commercial lease, you need to know the standard of repair your landlord expects.\u00a0This will generally be a \u2018good and substantial repair and condition \u2018or \u2018good and substantial repair\u2019.\u00a0<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>However, a pivotal point to be aware of, which can catch some tenants out, is that this repair standard does not necessarily reflect the standard the property was in when you entered the lease. So, if the property was not in this condition when you entered the lease, you would first have to ensure it gets to this state and then retain it.<\/p>\n<\/div>\n\n\n\n<p>If you fail to do this, you could find that at the end of a full repairing and insuring lease, you could receive a bill for what you did not bring to the standard the landlord requires as a breach of the lease even though you did not carry out the damage.&nbsp;<\/p>\n\n\n\n<p>However, defects are often not included as something you need to repair, but you should clarify this in the lease agreement.<\/p>\n\n\n\n<p>A good and substantial repair standard will be a personal one to the lease and depends on many factors of the commercial premises.\u00a0However, where the standard of repair refers to \u2018condition\u2019, your repair standard is higher. This means that if, for example, condensation creates damage to the business premises, you may need to repair it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Most commercial leases are FRI leases.\u00a0You need to comprehend what things you are responsible for maintaining and repairing, which will usually be the area demised to you in the lease.\u00a0You should also understand the standard of repairs your landlord requires and points about insurance.<\/p>\n\n\n\n<p>If you need help understanding FRI leases, LegalVision\u2019s experienced <a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\">leasing lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents.\u00a0Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/185999\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-points-commercial-tenant-fri-lease\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Three Key Points a Commercial Tenant Should Know About a FRI Lease\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you enter a commercial lease on a commercial property, you will have repair and maintenance obligations.\u00a0These can vary between leases. However, most commercial leases are full-repairing and Insuring commercial leases (FRI Leases). A FRI commercial lease can benefit both a commercial landlord and a tenant. For the latter, as their property is their investment,<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-points-commercial-tenant-fri-lease\/\">Continue reading <span class=\"sr-only\">&#8220;Three Key Points a Commercial Tenant Should Know About a FRI Lease&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":183555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"180306,177224,1420,176097,173206,176988","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[30],"tags":[20,61,1267,1567],"class_list":["post-185999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-lease-property","tag-small-business","tag-commercial-lease","tag-commercial-landlord","tag-commercial-tenant-rights"],"acf":[],"yoast_head":"<!-- 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