England Commercial Maintenance & Dilapidations
Review commercial landlord maintenance obligations in England, including FRI lease structures, service charges, and dilapidation claims.
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
England Commercial Maintenance & Dilapidations
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.
Sources & Official References
Frequently Asked Questions
▶What are the key landlord-tenant laws in England for 2026?
England's private rented sector has been fundamentally reshaped by the Renters' Rights Act 2025, which received Royal Assent on 27 October 2025. The Act abolishes Section 21 'no-fault' evictions from 1 May 2026, ends fixed-term assured shorthold tenancies (all ASTs automatically convert to assured periodic tenancies), standardises rent increases to Section 13 notices only, and introduces a right for tenants to request pets, a Private Landlord Ombudsman, and a mandatory PRS Database.
Read the complete guide▶What are the Section 21 eviction notice rules for landlords in England?
Section 21 'no-fault' evictions are abolished from 1 May 2026 under the Renters' Rights Act 2025. Landlords can serve Section 21 notices until 30 April 2026, and court proceedings based on those notices can continue until 31 July 2026. After that date, all new possession claims must use reformed Section 8 grounds, which require a legally specified reason such as rent arrears, landlord intends to sell, or landlord intends to move in.
Read the complete guide▶What is the security deposit limit for landlords in England?
Under the Tenant Fees Act 2019, security deposits are capped at 5 weeks' rent for properties with an annual rent under £50,000, or 6 weeks' rent for higher-value properties. All deposits must be protected within 30 days in a government-approved Tenancy Deposit Protection (TDP) scheme — either TDS, DPS, or MyDeposits. Failure to protect the deposit invalidates possession proceedings and can result in penalties of 1-3 times the deposit amount.
Read the complete guide▶How often can a landlord raise rent in England?
From 1 May 2026, the Section 13 notice becomes the only lawful method for landlords to increase rent — contractual rent review clauses will no longer be valid. Rent can only be increased once every 12 months, with a minimum of 2 months' written notice via Form 4 (or new Form 4A). Tenants retain the right to challenge increases at the First-tier Tribunal (Property Chamber), which can set the rent to the market rate.
Read the complete guide▶What disclosures must landlords provide to tenants in England?
England mandates extensive landlord disclosures including the government-issued 'How to Rent' guide, a valid Energy Performance Certificate (EPC) with a minimum E rating, a Gas Safety Certificate (renewed annually), an Electrical Installation Condition Report (EICR), and the Renters' Rights Act Information Sheet (required by 31 May 2026). From 1 May 2026, landlords must also disclose whether the property is covered by Good Cause Eviction provisions.
Read the complete guide▶What are landlord maintenance obligations in England?
Under the Landlord and Tenant Act 1985, landlords must maintain the structure and exterior, keep heating, water, gas, and electrical installations in proper working order, and ensure the property is fit for habitation under the Homes (Fitness for Human Habitation) Act 2018. The Renters' Rights Act 2025 adds enhanced enforcement powers including fines up to £7,000 for initial breaches and £40,000 for repeated or serious housing standard violations.
Read the complete guide▶What are the new tenant rights under the Renters' Rights Act 2025?
The Renters' Rights Act 2025 introduces major new tenant protections effective 1 May 2026: the right to request pets (landlords can only refuse with good reason), a cap of 1 month's rent in advance (preventing landlords from circumventing deposit limits), a free Private Landlord Ombudsman complaints service, a mandatory national PRS Database of landlords and properties, and enhanced penalty powers for local authorities.
Read the complete guide▶What are the late rent fee rules for landlords in England?
Under the Tenant Fees Act 2019, landlords in England can only charge interest on late rent (not a flat fee) at a rate no higher than 3% above the Bank of England base rate. This interest can only be charged after rent has been outstanding for 14 days. Any other charges or penalties for late payment are prohibited as they constitute banned tenant fees under the Act.
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