How long does the RTM Process Take?

The process takes around 6 months from the company set up stage.

How many directors are needed for a RTM Company set up?

Only one director per building is needed but there can be more than one. A director must own a property on the premises the RTM relates to.

What is the difference between being a director and a member of an RTM company?

A director has a say in which managing agent is appointed, which works are to be completed and when and how money is spent on the property, provided the terms of the lease are complied with.

What are the responsibilities of a director of an RTM Company?

A director has a say in which managing agent is appointed, which works are to be completed and when and how money is spent on the property, provided the terms of the lease are complied with. If a managing agent is appointed, a director generally has little to no responsibility. Reserve funds can also be held by the managing agent if desired and the directors should be covered by directors and officers insurance which the managing agent should cover the costs for in the yearly service charge budget.

What are the responsibilities of a member of an RTM Company?

A member does not have any responsibilities, the managing agent appointed should cover all duties and responsibilities to maintain the premises in accordance with the lease.

Is the RTM process necessary to change managing agent?

Yes, unless there is an existing RMC in place, otherwise the freeholder has the choice in which managing agent to use for the premises.

What happens if a director of the RTM sells their property?

They will be resigned as a director of the RTM company, a director has to own a property in the premises the RTM relates to.

What happens if there is no remaining director of the RTM company?

The Right To Manage is returned to the freeholder.