Introduction to Right to Manage (RTM)

Right to Manage (RTM) is a legal process that allows leaseholders to take control of their building’s management without proving fault. Under the Commonhold and Leasehold Reform Act 2002, leaseholders who meet the required criteria can collectively manage their property, giving them greater control over maintenance, servicechargesorted.co.uk/blogs/service-charge-disputes-what-cam-be-disputed-how-and-the-role-of-the-first-role-planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal'>service charges, and managing agents.

The Law Commission’s Review of RTM

The Law Commission has announced that it will publish its review of the Right to Manage process in February 2020. This review aims to simplify and improve RTM, making it more accessible for leaseholders. In the meantime, Ringley offers a comprehensive E-Book that explains the process in detail, guiding leaseholders through each step.

Does Your Block Qualify for RTM?

Before proceeding with RTM, your building must meet four key criteria:

• There must be at least two flats in the block.
• At least two leaseholders must be willing to act as directors of the RTM Company.
• The block must be self-contained (i.e., not dependent on another building).
• At least two-thirds of leaseholders must hold long leases (i.e., they are not short-term renters).

Setting Up an RTM Company

Once you confirm eligibility, the next step is to register an RTM Company. This involves:

• Sending out formal participation notices to other leaseholders and the freeholder.
• Serving a claim notice to the freeholder and managing agent, notifying them of the RTM intention.
• Handling any potential disputes—if the freeholder objects, professional legal advice may be needed.

Responsibilities of an RTM Company

Upon a successful RTM claim, the leaseholders gain control over key management tasks, including:

• Property maintenance and repairs
• servicechargesorted.co.uk/blogs/service-charge-disputes-what-cam-be-disputed-how-and-the-role-of-the-first-role-planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal'>Service charge collection and accounting
• Building insurance management
• Appointing and overseeing a managing agent (if leaseholders prefer professional assistance)

While RTM provides independence, managing a block is a complex task that requires expertise. Many RTM Companies choose to hire experienced property managers to handle daily operations.

How Ringley Can Help

Navigating RTM can be challenging, especially when it comes to legal paperwork and serving notices correctly. Ringley has years of experience assisting flat owners in achieving successful RTM outcomes. Download our E-Book to get step-by-step guidance or contact us today for expert advice. We’re here to help you take control of your block management with confidence.