Right to manage

Right to manage your property with confidence

Taking control of your property’s management doesn’t have to mean buying the freehold. With the Right to Manage, you and your fellow leaseholders can assume responsibility for your building and make decisions that best serve your interests. This statutory right gives you the power to appoint a managing agent who prioritises your needs, ensuring that essential maintenance is handled efficiently.

What is the right to manage?

The Right to Manage (RTM) allows leaseholders to collectively take over the management responsibilities of their building from the landlord, even without purchasing the freehold. Established under the Commonhold and Leasehold Reform Act 2002, this statutory right empowers residents by enabling them to form a company dedicated to managing their property. Here’s what you need to know:

1. Key benefits of the right to manage

  • Take control of decisions: Leaseholders can make informed choices about maintenance, repairs, and services without waiting on the landlord’s approval.
  • Customise your property management: By appointing a managing agent of your choosing, you can ensure that the building’s management aligns with your needs and expectations.
  • No proof of landlord’s mismanagement Rrequired: You do not need to demonstrate that the landlord has managed the property poorly. The Right to Manage is an entitlement that exists regardless of the landlord’s track record.

2. How does right to manage work?

  • Forming an RTM company: Leaseholders form a company specifically for managing the building. This company becomes the vehicle through which management responsibilities are exercised.
  • Majority agreement: A simple majority of qualifying leaseholders in the building must agree to pursue the Right to Manage. This consensus helps solidify the commitment needed for the process.
  • Transfer of rights: Once the process is completed, the RTM company holds the right to manage, and leaseholders can make decisions, appoint new managing agents, and oversee the budget and maintenance schedules.

3. Eligibility for right to manage

  • Building criteria: The building must be self-contained and comprise at least two flats. It should also meet specific residential occupation standards.
  • Leaseholder requirements: The majority of leaseholders in the building must support the move to take over management. Each participant must hold a long lease (typically more than 21 years).

4. Why is the right to manage important?

The Right to Manage gives leaseholders greater influence over their living conditions and financial expenditures related to property management. This statutory right ensures that residents have a direct say in the management without being dependent on a landlord’s approval or pace, creating a fairer and more efficient system for everyone involved.

Why choose the right to manage?

Opting for the Right to manage can make a substantial difference in how your building is maintained and operated. By taking this step, leaseholders gain significant control over property management, leading to a host of benefits that improve daily living and future planning. Here’s why many leaseholders choose this path:

1. Gain control over property management

  • Proactive decision-making: When leaseholders take charge, they can address maintenance needs quickly and efficiently. There’s no more waiting on a landlord to respond or act on essential repairs.
  • Transparency in services & costs: The Right to Manage enables leaseholders to select service providers and manage budgets with clear oversight, ensuring all expenditures directly benefit the property.

2. Appoint a managing agent that works for you

  • Customised service: By appointing a managing agent of their choice, leaseholders ensure that the agent prioritises their interests and provides services that meet their standards.
  • Improved service quality: Leaseholders often find that their chosen agents are more responsive and proactive compared to those appointed by a landlord.

3. Ensure timely maintenance & repairs

  • End delays: With the Right to Manage, residents no longer face prolonged delays in maintenance or repairs. Leaseholders can implement a schedule for routine maintenance and react swiftly to urgent issues.
  • Preventative upkeep: Better control over the management of the property allows for preventative maintenance, which can save costs in the long run and improve the building’s overall condition.

4. Flexibility in decision-making

  • Tailored management choices: Leaseholders can make decisions that better suit the unique needs of their building and community. This flexibility can lead to improved satisfaction and a stronger sense of ownership.
  • Budget control: The ability to set and manage budgets ensures that funds are allocated efficiently and reflect the priorities of the residents.

5. Eliminate the frustration of unresponsive landlords

  • No more dependence on landlord performance: With RTM, leaseholders are no longer at the mercy of landlords who may be slow to act or make decisions. This shift to a more responsive management structure improves the overall experience for residents.
  • Reduced conflict: Taking on the management responsibility can lead to fewer disputes with landlords over service levels, costs, or the quality of work carried out.

The right to manage process

Understanding the Right to Manage (RTM) process is essential for a smooth transition to self-management. While the process is designed to be accessible, it requires clear steps and attention to detail. Here is an overview of what’s involved:

1. Initial Assessment & eligibility check

  • Building eligibility: Ensure the building meets the criteria — typically, it must be self-contained with at least two flats, and the majority of units must be used for residential purposes.
  • Leaseholder qualification: Verify that a majority of leaseholders, who hold long-term leases (over 21 years), are prepared to participate in the RTM process.

2. Formation of the RTM company

  • Set Up a company: Leaseholders must establish an RTM company, which will take on the management responsibilities once the process is complete.
  • Company structure: This entity needs to be structured according to legal guidelines, with leaseholders as its members or directors.

3. Serving the initial notice

  • Issuing the notice: The RTM company must serve a formal notice to the landlord, informing them of the intention to take over management.
  • Compliance with requirements: The notice must include details such as the building address, leaseholder information, and a proposed date for the management handover.
  • Notice period: The landlord typically has up to three months to respond, either accepting the RTM or challenging the eligibility.

4. Responding to landlord challenges

  • Addressing disputes: In some cases, landlords may dispute the RTM company’s claim. This can involve presenting the case to a property tribunal for a final decision.
  • Legal representation: Having experienced legal guidance ensures that any challenges are met with proper documentation and strong representation.

5. Transition of management control

  • Completion of the process: If there are no objections, or once any disputes are resolved in favour of the leaseholders, the RTM company formally takes over the management on the agreed handover date.
  • Appointing a managing agent: The RTM company can now appoint a managing agent to oversee daily operations, handle maintenance, and manage contracts with service providers.

6. Post-handover responsibilities

  • Ongoing management duties: The RTM company is responsible for managing the building effectively, which includes maintaining communal areas, collecting service charges, and ensuring compliance with health and safety regulations.
  • Regular meetings: Leaseholders can schedule regular meetings to discuss property management issues and future plans.

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Our expert guidance for a seamless right to manage transition

Choosing to take control of your building’s management is an empowering step, but having the right legal support can make all the difference in ensuring a successful transition. At Anthony Gold Solicitors, we understand that navigating the Right to Manage process involves more than just meeting legal requirements—it’s about ensuring that you and your fellow leaseholders feel confident and supported every step of the way.

1. Our approach to supporting leaseholders

  • Personalised legal guidance: We offer tailored advice that takes into account your specific building and leaseholder group, ensuring that every step is managed correctly. From the initial eligibility assessment to the serving of notices, we provide comprehensive support to keep the process on track.
  • Transparency & agreed pricing: One of the biggest concerns leaseholders face is unexpected costs. At Anthony Gold Solicitors, we believe in clear, upfront pricing, so you always know what to expect. This commitment to transparency helps you plan confidently and avoid financial surprises.

2. Navigating challenges & tribunal support

  • Effective dispute resolution: If a landlord disputes the RTM claim, our experienced solicitors are ready to represent your interests at the property tribunal. We prepare all necessary documentation and handle the process with professionalism, ensuring that your case is presented effectively.
  • Reassurance in difficult situations: Disputes can be stressful, but with Anthony Gold Solicitors by your side, you’ll have a team that knows how to navigate these challenges successfully. We work to minimise delays and keep the process moving smoothly, so you can stay focused on your goal of taking control.

3. Why legal support matters for the right to manage

  • Expertise to prevent common pitfalls: Missteps in the RTM process can lead to unnecessary delays or even legal challenges. With our support, you can be sure that every detail is handled with precision, reducing risks and preventing costly mistakes.
  • Comprehensive advice for long-term success: The Right to Manage isn’t just about gaining control—it’s about managing your building effectively in the years that follow. We offer advice not only for the initial transition but for establishing best practices that help the RTM company thrive.

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Right to manage: FAQs

What is the first step in starting the Right to Manage process?

The first step in starting the Right to Manage process is assessing whether your building and leaseholders meet the eligibility criteria. This involves ensuring that your property qualifies under the law and that a majority of leaseholders are willing to participate. Once eligibility is confirmed, the formation of an RTM company is the next crucial step to initiate the process.

How do leaseholders form an RTM company?

Leaseholders form an RTM company by registering a company specifically dedicated to managing the building. This company must be structured according to legal guidelines, with the leaseholders as its members or directors. The RTM company acts as the legal entity responsible for taking over the management and serves as the formal applicant when notifying the landlord of the leaseholders’ intention to assume control.

What are the main benefits of choosing the Right to Manage?

Choosing the Right to Manage allows leaseholders to take control over decisions affecting their building, ensuring that maintenance, repairs, and budgets are managed in a way that reflects their priorities. This process removes dependence on a potentially unresponsive landlord and allows the selection of a preferred managing agent, enhancing service quality and transparency. It empowers leaseholders with more direct involvement and better oversight of their living environment.

What kind of legal challenges might we face when pursuing RTM?

Legal challenges in pursuing the Right to Manage can include disputes from the landlord, who may question the eligibility of the building or the validity of the process. These challenges often require defending the case at a property tribunal. With experienced legal guidance, these obstacles can be navigated effectively, ensuring that all documentation and procedural requirements are met to support a strong case.

What happens after the RTM company takes over the management?

Once the RTM company takes over the management, it assumes full responsibility for the building’s maintenance, budget management, and service contracts. The company can appoint a managing agent to handle day-to-day operations and implement a tailored approach that prioritises the needs of the leaseholders. Regular meetings and clear communication between members help ensure the RTM company operates smoothly and maintains the building effectively.