An FRI lease is a full repairing and insuring lease. This is a form of commercial lease which is generally acceptable to institutions, including insurance companies and pension funds. Under an FRI lease, the tenant bears the full costs of repairs and insurance, albeit the landlord will arrange the insurance policy (and recover insurance costs through an ‘insurance rent’), and, in a multi-let building, carry out the repairs to common parts (and recover the cost of those repairs, through a service charge). The FRI lease is institutionally acceptable because it allows the landlord to receive a clear income stream, as they take ‘home’ the entire rent (i.e. the rental income) without cost to itself.