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Understanding the Right to Manage (RTM)

If you own a leasehold property you may already have, or be interested in acquiring, the right to manage (RTM) your property. Since its introduction in England and Wales, leaseholders have been empowered to take control of the management of their property via a properly constituted RTM company from bad landlords or managing agents. 

In this blog post, we'll delve into what RTM is, how it works, and offer advice about selecting the right management company to facilitate the process and manage your property.

a row of terraced houses in london

What is the Right to Manage (RTM)?

The Right to Manage is a legal provision introduced by the Commonhold and Leasehold Reform Act 2002. This provision grants leaseholders in qualifying buildings the right to take over the management responsibilities of their residential property from the existing landlord (or freeholder). This enables leaseholders to collectively form an RTM company, giving them greater control over various aspects of the management of their property, without having to prove any fault on the part of the landlord.

How Does RTM Work?

The RTM process involves several key steps:

  • Qualification: To qualify for RTM, the property must meet a set of criteria, such as having a sufficient number of qualifying tenants and complying with the eligibility conditions outlined in the legislation. You can find up-to-date details on the qualifying criteria here.

  • Forming an RTM Company: A group of leaseholders interested in taking over management responsibilities will form an RTM company. This company will serve as the vehicle through which the management responsibilities are transferred.

  • Serving the Notice: The RTM company serves a formal Notice of Claim to the current landlord (or freeholder). This notice outlines the intention to exercise the Right to Manage and provides information about the leaseholders' eligibility and the property's qualification.

  • Landlord's Response: The landlord has a limited timeframe to respond to the Notice of Claim. They can either accept the claim or contest it based on a very limited number of specific grounds.  Where a counter-notice is served by the landlord, the RTM company will then have two months in which to make an application to the First-tier Tribunal to seek a determination of whether or not the RTM company is entitled to the RTM.

  • Appointment of the RTM Company: If the process is successful and the landlord does not contest the claim, the RTM company gains the right to manage the property. This includes responsibilities related to maintenance, repairs, service charges, and more.

Choosing a Managing Agent for RTM:

Selecting the right managing agent to handle the property's management is a critical decision in the RTM process. Here are some key considerations:

  • Experience and Expertise: Look for a professional regulated managing agent with experience in managing RTM properties. At London Block Management, we understand the intricacies of leasehold law and property management, so we are well-equipped to manage RTM properties effectively.

  • Transparency: Transparent and thorough accounting is essential. All blocks managed by London Block Management have individual client accounts, which are reconciled on a daily basis. Every quarter, we provide clear and detailed breakdowns of service charges, expenses, and funds to our clients, whom are also able to request summary reports at any point.

  • Communication: Effective communication is vital for a smooth RTM process. We maintain an open line of communication, keeping leaseholders informed about management decisions, maintenance schedules, and other important updates.

  • Tailored Services: Every property has unique needs. We customise our services to meet the specific requirements of your property, contributing to its effective management.

  • Legal Compliance: We ensure that the RTM company complies with all legal and regulatory requirements related to property management in England and Wales.

The RTM empowers leaseholders to take control of their property's management. By understanding the RTM process and making an informed choice when selecting a managing agent, leaseholders can ensure the smooth and efficient management of their residential property.

Remember, RTM involves legal intricacies, so we would advise seeking professional guidance from property management experts or legal advisors before initiating the process.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult with legal professionals for accurate guidance on RTM and property management.


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