Right to Manage (RTM) – Explained

The Right to Manage (RTM) gives leaseholders a legal right to take over the management of their building, without needing to prove fault or poor performance by the existing managing agent or freeholder.

Introduced under the Commonhold and Leasehold Reform Act 2002, RTM empowers leaseholders to gain control over how their building is managed, maintained, and budgeted for—while ownership of the freehold remains unchanged.

What Is the Right to Manage?

Right to Manage allows qualifying leaseholders to:

  • Take control of the day-to-day management of their building

  • Appoint their own managing agent (or self-manage if they choose)

  • Have greater oversight of service charges, contracts, and maintenance

  • Improve transparency, communication, and long-term planning

RTM is a no-fault process—leaseholders do not need to demonstrate mismanagement or wrongdoing by the current managing agent or landlord.

Who Can Claim the Right to Manage?

A building will usually qualify if:

  • It contains at least two residential flats

  • No more than 25% of the building is in non-residential use (e.g. shops)

  • At least two-thirds of the flats are held on long leases

  • At least 50% of qualifying leaseholders participate in the claim

Each RTM application is fact-specific, and eligibility should be carefully reviewed before proceeding.

The RTM Process – Step by Step

1. Formation of an RTM Company

Leaseholders must form a Right to Manage company, registered at Companies House.
This company becomes the legal entity responsible for managing the building once RTM is granted.

2. Serving the Notice of Invitation to Participate

All qualifying leaseholders must be formally invited to join the RTM company, giving them the opportunity to participate in the claim.

3. Serving the Claim Notice

The RTM company serves a Claim Notice on the freeholder and any intermediate landlords.
This notice sets out:

  • Details of the property

  • Confirmation that qualifying criteria are met

  • The proposed RTM takeover date

4. Landlord Response

The landlord has one month to serve a Counter-Notice. They can only dispute the claim on limited legal grounds (such as eligibility).

If no valid objection is raised, the RTM will proceed.

5. RTM Handover

On the agreed date, management responsibility transfers to the RTM company.

This includes:

  • Service charge collection and budgeting

  • Maintenance and repairs

  • Health & safety compliance

  • Insurance arrangements

  • Contractor and supplier management

The freeholder remains the building owner and retains certain rights, but day-to-day management passes to the RTM company.

What Responsibilities Does an RTM Company Have?

Once RTM is in place, the RTM company must comply with the same legal and regulatory obligations as any professional managing agent, including:

  • Service charge accounting and transparency

  • Compliance with the Building Safety Act (where applicable)

  • Fire safety, asbestos, and health & safety regulations

  • Proper consultation on major works (Section 20)

  • Maintaining accurate records and statutory notices

For this reason, most RTM companies appoint an experienced managing agent to act on their behalf.

How We Support Right to Manage Companies

We work closely with RTM companies at every stage, including:

  • Pre-RTM eligibility assessments

  • Supporting the RTM claim process

  • Acting as managing agent post-handover

  • Ensuring full legal and regulatory compliance

  • Transparent service charge management

  • Long-term asset and maintenance planning

Our role is to provide professional, compliant management while ensuring leaseholders retain meaningful control and clear visibility over decisions.

Considering Right to Manage?

If you’re exploring Right to Manage or are part of an existing RTM company looking for a new managing agent, we can guide you through the process and provide clear, practical advice.

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