So, you’ve finally reached your RTM acquisition date, the moment your Right to Manage (RTM) company officially takes over the running of your building. Congratulations! It’s a big step for any group of leaseholders. But what happens next? Once the handover is complete, you’re responsible for making sure the building runs smoothly, and that’s where things start to feel real. In this guide, we’ll break down what happens after the RTM handover, what responsibilities your company now has, and how working with a professional block management company can make life much easier.
When the RTM handover happens, legal control shifts from the freeholder or their managing agent to the RTM company. From that date, the RTM directors are responsible for the building’s management, everything from insurance and maintenance to collecting service charges and handling compliance. However, that doesn’t mean you take over absolutely everything. Some rights remain with the freeholder, and some responsibilities are shared. The key thing is understanding which duties belong to your RTM company and which do not.
Here’s what typically becomes your responsibility after the handover: arranging the building insurance, maintaining and repairing the building, collecting service charges, health and safety compliance, and managing contractors and suppliers. This covers everything from communal areas and roofs to budgets, fire safety, and ensuring all suppliers are insured and accredited. If this sounds like a lot, it’s because it is, which is why most RTM companies appoint a professional block management company to handle these tasks on their behalf.
Even after an RTM takeover, the freeholder retains certain rights. They remain the legal owner of the building, and some responsibilities still sit with them. For example, the freeholder continues to collect ground rent directly from leaseholders, may still be responsible for structural repairs depending on the lease, and must be kept informed about decisions around insurance and major works. While the RTM company manages day-to-day running, the freeholder doesn’t completely disappear from the picture, so communication between both parties is essential.
After the handover, one of the first jobs is reviewing the building’s existing service contracts, such as cleaning, maintenance, lifts, and insurance policies. You’ll need to decide whether to keep the current providers or appoint new ones. If you keep them, make sure contracts are transferred into the RTM company’s name and that costs are fair. If you change suppliers, ensure there’s no break in essential services. A professional block management company can help by tendering new contracts, checking compliance, and making sure all providers are properly insured and accredited.
The previous managing agent should transfer any unspent service charge money to your RTM company shortly after the handover. These funds belong to the leaseholders and must be kept in a dedicated trust account. Your RTM company will then take responsibility for collecting ongoing service charges and managing budgets. It’s crucial that the accounts are transparent and follow RICS and ARMA standards. Many RTM directors find it reassuring to have a managing agent oversee the financial side. They can prepare budgets, reconcile accounts, and ensure everything is ready for the annual statement of expenditure.
One of the biggest areas of post-handover responsibility is compliance. Your RTM company must ensure the building meets all health and safety and fire safety requirements, including fire risk assessments, asbestos surveys, electrical safety tests (EICR), lift and equipment inspections, and health and safety audits for communal areas. Failing to meet these requirements can expose directors to personal liability. This is another reason why professional block management is worth considering, compliance is complex, and it’s essential to stay on top of deadlines and documentation.
As an RTM company, transparency is key. Regular communication with leaseholders helps prevent disputes and keeps everyone on the same page. You’ll need to share budgets and accounts, notify leaseholders of major works under Section 20, and hold annual meetings to discuss service charge spending and future plans. Many RTM companies use digital tools or management portals to keep leaseholders informed and make it easy to track updates and payments.
Taking control of your building is empowering, but also demanding. A block management company can take care of the operational side so you can focus on decision-making. A good block management partner typically provides a dedicated manager, supplier management, financial administration, compliance oversight, and communication support. This partnership helps RTM directors focus on long-term planning instead of day-to-day firefighting.
Start with a handover checklist to make sure all documents, accounts, and maintenance records are transferred from the old manager. Prioritise essential services like insurance, cleaning, and maintenance. Appoint professionals early, your accountant and managing agent should be involved from the start. Keep communication open with both freeholders and leaseholders, and document everything to avoid disputes.
Running an RTM company is a big responsibility, but it’s also a chance to take real control over how your home is managed. The key is knowing what’s expected of you and surrounding yourself with the right support. At Cube Block Management, we work with leaseholders and RTM directors across London to manage everything from budgets and compliance to repairs and communication. Whether you’ve just completed your RTM handover or are preparing for one, we can help make the process simple, transparent, and stress-free. Taking control shouldn’t mean taking on all the stress and with the right block management support, it doesn’t have to.
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