A landlord or tenant considering business premises should examine the proposed lease rather than assume responsibilities will follow the pattern of a residential letting. In particular, the condition of the building and the wording of the repairing obligations deserve attention before a commitment is made.
The RICS Code for Leasing Business Premises in England and Wales says repairing obligations should be appropriate to the lease term, the condition of the premises and the financial terms. Where responsibility is intended to be limited to the initial condition, the code says a schedule of condition will normally be needed and the parties should agree who pays for it.
Begin with the actual premises
Ask a suitable professional to explain what the proposed obligation covers. Consider the area being let, shared parts and any work already identified. A visual impression during a viewing is not a reliable substitute for understanding a written repair covenant and the building’s condition.
If a schedule of condition is proposed, ask how it will be incorporated into the lease and whether the wording gives it the intended effect. Keep the agreed record with the final documents. Photographs and a report are most useful when their role in the agreement is clear.
Discuss alterations early
The RICS code also recommends clarity about restrictions on alterations and changes of use at the outset. A business should explain its proposed fit-out before assuming the space can accommodate it. Ask which consents are required, who seeks them and what might have to be removed or reinstated later.
Consider the whole commitment
The headline rent does not describe every potential cost. Ask advisers to explain service charges, insurance arrangements, repairs and any other financial commitments in the documents. Compare terms on a consistent basis rather than treating a lower rent as proof that one proposal is cheaper overall.
For an owner, clear terms are equally important. Record the intended division of responsibilities and resolve uncertainty before signing, rather than expecting a broad verbal understanding to settle a later problem.
This is a starting point for reviewing a proposal, not a statement that every commercial lease has the same obligations. Obtain legal and surveying advice suited to the particular premises and agreement.
Source: RICS, Code for Leasing Business Premises, England and Wales, first edition, effective September 2020; repair and alteration sections checked 4 November 2026.