The Ultimate Right to Manage Guide

If you’re a leaseholder in a block of flats, chances are you’ve experienced frustrations with your building’s management. High service charges, poor communication, or lack of transparency can all make you feel powerless. But there is a legal route that puts the power back in your hands: the Right to Manage (RTM).

In this ultimate guide, we’ll walk you through the RTM process from start to finish — including who qualifies, how to apply, common pitfalls, and how block management comes into play once you take control.

Whether you're a first-time leaseholder or a seasoned Residents' Management Company (RMC) director, this is your essential handbook to Right to Manage success.

What Is Right to Manage (RTM)?

The Right to Manage is a legal right granted to leaseholders under the Commonhold and Leasehold Reform Act 2002. It allows leaseholders of flats to take over the management of their building without having to prove fault or negligence by the current freeholder or managing agent.

Instead of complaining about how your block is run, RTM empowers you to make the decisions — either through self-management or by appointing your own professional block management company.

Why Leaseholders Choose RTM

There are several reasons leaseholders might want to take control of their building:

  • High or unexplained service charges
  • Poor quality maintenance or repairs
  • Lack of transparency or accountability
  • Feeling disconnected from decision-making
  • Desire for long-term financial planning (e.g. better reserve fund management)

By forming an RTM company, leaseholders gain direct control over everything from contractors and maintenance to insurance, budgeting, and compliance — or they can delegate these tasks to a trusted block management provider of their choice.

Who Can Claim the Right to Manage?

Not every block qualifies for RTM. Here’s what you need to know:

Building Eligibility:

  • The property must be a self-contained building or part of one (like a block of flats).
  • At least two flats must be held by qualifying leaseholders.
  • No more than 25% of the building can be used for non-residential (commercial) purposes.

Leaseholder Eligibility:

  • Leaseholders must hold a long lease (typically more than 21 years).
  • At least 50% of leaseholders in the building must support the RTM application.
  • The building can’t already be managed by a Right to Manage company or subject to a tribunal-appointed manager.

Step-by-Step RTM Process

The process can take 4 to 6 months, so timing and attention to detail matter. Here's how to do it:

1. Form the RTM Company

You’ll need to set up a limited company, typically named “[Building Name] RTM Company Ltd”. This company becomes the legal entity that will take over management. Officers (directors and secretary) must be appointed.

2. Invite All Leaseholders

You must serve a Notice Inviting Participation to all leaseholders in the building — even those not initially supporting the RTM. This allows everyone the chance to get involved.

3. Serve the Claim Notice

This formal Claim Notice is served on the freeholder and any current managing agents. It states your intention to take over management and outlines who the RTM company is.

They have 1 month to respond and 3 months to object. If no valid objections are raised, management transfers automatically.

4. Handle Disputes (If Any)

The freeholder may challenge the application through a tribunal. Common challenges include errors in the notice or questions of eligibility. If your paperwork is accurate, success is still likely — but expect delays.

5. Take Over Management

Assuming no successful objections, management formally transfers to the RTM company on the handover date (usually 3 months from the claim notice). From this date, you’re responsible for:

  • Service charges
  • Maintenance and repairs
  • Health and safety compliance
  • Insurance
  • Legal duties and company filing

Your New Responsibilities After RTM

Running a block isn’t just about calling the window cleaner. It involves real financial, legal, and safety responsibilities. That’s where professional block management becomes invaluable — even after you've gained control.

An RTM company must handle:

  • Service charge collection and budgeting
  • Major works and Section 20 consultations
  • Insurance procurement
  • Contractor management
  • Regulatory compliance (e.g., fire safety, asbestos, lift inspections)
  • Dispute resolution between residents
  • Annual Companies House filings

Even if leaseholders want a hands-on role, many RTM companies find the most efficient option is to appoint a block management company that works under their direction.

Common Pitfalls to Avoid

RTM is a powerful tool, but mistakes can derail it. Watch out for:

  • Poorly drafted notices – These are the most common cause of tribunal objections.
  • Not involving enough leaseholders – You need over 50% participation to qualify.
  • Overlooking the handover details – Ensure you gather all info: budgets, contracts, health & safety docs.
  • Trying to self-manage without experience – It's easy to miss legal obligations or compliance rules.

How Block Management Supports RTM Companies

Once your RTM company is up and running, partnering with a professional block management company ensures the building is properly maintained and compliant.

Here’s how the right managing agent can help:

  • Financial planning – Build a proper reserve fund and transparent budget.
  • Reliable maintenance – Access vetted, responsive contractors.
  • Legal compliance – Ensure health and safety, fire risk, and insurance requirements are met.
  • Communication – Act as a neutral point of contact between leaseholders.
  • Reporting – Provide regular updates, AGM support, and accounts reporting.

With the RTM company in control, you choose the manager, set expectations, and can switch if you're not happy — a huge improvement over relying on the freeholder.

Should You Use a Solicitor or RTM Specialist?

While not legally required, many leaseholders choose to use:

  • Solicitors – to ensure notices and process steps are accurate.
  • RTM advisors or specialists – to coordinate the entire handover.

This helps reduce the chance of rejection and ensures a smoother takeover, especially in larger or more complex blocks.

Final Thoughts: Is RTM Right for You?

If you and your neighbours are unhappy with the way your block is managed — and you meet the eligibility criteria — Right to Manage could be the solution. It gives you the legal right to appoint your own block management company, control spending, and improve service levels.

Just remember: with power comes responsibility. Choose experienced support, understand your obligations, and treat your RTM company like any business — one that benefits every leaseholder in the block.

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