Commercial maintenance obligations in England are primarily governed by the terms of the lease contract. Unlike residential tenancies where the landlord bears an implied statutory duty to repair under Section 11 of the Landlord and Tenant Act 1985, commercial landlords and tenants are free to negotiate repair liability. However, statutory protections under the Landlord and Tenant Act 1927 (effective 25 March 1928) impose critical caps on damages for breaches of repair covenants.

Maintenance Under FRI Leases

Under a standard Full Repairing and Insuring (FRI) lease (the norm for single-let commercial properties), the tenant is responsible for:

• All internal and external repairs.
• Structural maintenance (roof, foundations, external walls) — for single-let buildings.
• Keeping the property in the condition specified by the lease.

The landlord's obligation is typically limited to insuring the building (with the tenant reimbursing the premium).

Energy Efficiency (MEES) Obligations

Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES), landlords face statutory maintenance and upgrade obligations that override lease terms regarding sub-standard energy performance. Since 1 April 2023, landlords must not continue to let a commercial property with an Energy Performance Certificate (EPC) rating of 'F' or 'G' (sub-standard) unless a valid exemption is registered. This imposes a statutory duty to perform energy-efficiency maintenance and upgrades regardless of the repair covenants in the lease.

Service Charges in Multi-Let Properties

In multi-let commercial buildings (office blocks, retail parks, shopping centres), the landlord manages the building's common areas, structure, and shared services, recovering costs via a service charge levied on each tenant.

RICS launched the 2nd edition of its Service Charges in Commercial Property standard in June 2025, which became effective on 31 December 2025. This edition introduces several mandatory requirements:

• Reporting Deadlines: Managers must issue a service charge budget (including explanatory commentary) to tenants at least one month prior to the start of the service charge year. A service charge reconciliation and certificate/report must be provided to tenants within four months of the service charge year-end.
• Fixed Management Fees: Management fees must be a fixed fee and not a percentage of the service charge expenditure.
• Transparency: Costs must be transparent, reasonable, and supported by evidence, relating only to services that benefit the tenants.

Dilapidations

Dilapidations are the most financially significant maintenance issue in English commercial property. At the end of a lease (or during the term via an "interim schedule"), the landlord can claim compensation from the tenant for breaches of the repairing covenant.

A terminal schedule of dilapidations is typically served at or near the lease expiry, itemising every defect and the estimated cost of remedy. Claims can run into tens or hundreds of thousands of pounds.

[!IMPORTANT] Section 18(1) Cap: The Landlord and Tenant Act 1927, Section 18(1), caps dilapidation damages at the diminution in the value of the landlord's reversion. If the landlord intends to demolish or substantially reconstruct the property, the dilapidation claim may be significantly reduced or extinguished entirely.

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