What Is Right to Manage (RTM)?
The Right to Manage (RTM) is a legal right that allows qualifying leaseholders to take over the management of their building without having to purchase the freehold or prove that the existing management is inadequate.
Introduced by the Commonhold and Leasehold Reform Act 2002, RTM gives leaseholders greater control over how their development is managed, how service charge funds are spent and how important decisions affecting the building are made.
Why Do Leaseholders Pursue RTM?
Leaseholders often consider Right to Manage where they are experiencing:
- Poor communication from the managing agent
- Rising service charges
- Poor maintenance standards
- Lack of transparency
- Delays in completing repairs
- Concerns over financial management
- Frustration with the freeholder or existing management arrangements
Importantly, leaseholders do not need to prove that the current management is failing in order to exercise the Right to Manage.
Does My Building Qualify for RTM?
Whilst every building should be assessed individually, the main qualifying criteria generally include:
- The building must contain at least two flats
- At least two-thirds of the flats must be held on long leases
- At least 50% of the qualifying leaseholders must participate in the claim
- The building must satisfy certain residential and structural requirements
Complex developments may require specialist advice to determine eligibility.
The RTM Process
The Right to Manage process follows a strict legal procedure.
The key stages typically include:
1. Establishing an RTM Company
A Right to Manage Company is incorporated and qualifying leaseholders are invited to become members.
2. Preparing the Claim
The building's eligibility is reviewed and the necessary notices are prepared.
3. Serving the Claim Notice
A formal Claim Notice is served on the freeholder and any other relevant parties.
4. Counter Notice
The landlord has the opportunity to admit or dispute the claim within the statutory time limits.
5. Acquisition Date
If the claim is successful, management responsibilities transfer to the RTM Company on the acquisition date.
6. Handover and Ongoing Management
The RTM Company assumes responsibility for the management of the development, including maintenance, service charge administration, compliance and contractor management.
What Happens After RTM Is Acquired?
This is often the stage that receives the least attention.
Once RTM has been acquired, directors become responsible for ensuring the building is properly managed and remains compliant with relevant legislation.
This may include:
- Service charge budgeting and collection
- Health and safety compliance
- Fire safety management
- Building Safety Act compliance
- Insurance administration
- Contractor management
- Major works planning
- Resident communication
Many RTM Companies choose to appoint a professional managing agent to assist with these responsibilities whilst retaining control over key decisions.
How Archery Estates Can Help
At Archery Estates, we have assisted numerous leaseholders, RTM Companies and Resident Management Companies through the Right to Manage process.
We can provide support at every stage, including:
- Initial RTM eligibility assessments
- Leaseholder engagement and guidance
- Incorporation of the RTM Company
- Preparation and service of statutory notices
- Management of the RTM claim process
- Liaison with freeholders and their representatives
- Management handovers and transfer of information
- Director support and training
- Self-managed RTM support services
- Back-office administration
- Full property management services
Thinking About RTM?
If you would like to understand whether your building qualifies for Right to Manage or discuss the process in more detail, contact Archery Estates for practical advice and guidance.
