What is RTM?

Right To Manage is a legal right that leaseholders can obtain to take over the management of their property from the freeholder of their premises.

It is covered by the Commonhold and Leasehold Reform Act 2002.

Usually the Right To Manage is exercised when leaseholders are unhappy with the way that their property is being managed by the freeholder and the managing agent they have appointed and it is a useful right to enable people to change managing agent or manage their property themselves.

There are particular qualifying rules and criteria that need to be met which we can advise on and guide you through on a case by case basis.

The RTM Process

Qualifying criteria need to be met for a Right To Manage to be successful.

Two thirds of the properties in the premises (building) must be let to qualifying tenants. Commercial elements within a premises cannot exceed 25% of the total premises area internally.

At least 50% of owners of units within the block must be on board with and support the RTM process.

If the above criteria is met, an RTM company (a company limited by guarantee) is formed.

A notice of participation is then served on all qualifying leaseholders who are not at the time of service already registered as a member of the RTM company. They are given 14 days to participate.

After this, the notice of claim is sent to the freeholder. The freeholder has one calendar month to admit the RTM or serve a counter notice (on the basis the building does not qualify.) In the unlikely scenario a counter notice is served, an application can be made to the first tier tribunal to contest this.

If the landlord admits the claim or does not serve a counter notice within the one calendar month, the RTM is acquired 4 months from the date of the notice of the claim to the freeholder.

The landlord may ask for their legal costs for admitting the claim to be covered which must be fair and reasonable. This is not always the case but if it is they usually cost around £750 based on our experience.

How We Will Help

We can advise on and assist with getting in touch with other qualifying tenants to gain support for the RTM process.

We will assist with the setting up of the RTM Company.

We will serve the notice of participation and the claim notice.

We will advise on carrying out a tender process to choose a suitable managing agent that will provide the best service and cost.

We can offer references to reputable and personally used managing agents.