© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
Right to Manage (RTM) is a no-fault procedure provided by statute enabling falt owners (leaseholders) to take over the management of their building. Right to Manage (RTM) became law under the terms of the Commonhold and Leasehold Reform Act (CARLA 2002).
The Right to Manage (RTM) reform was introduced because of the need for an alternative management option for leaseholders. Additionally, Right to Manage (RTM) can be achieved legally months sooner than collective enfranchisement.
Right to Manage (RTM) has allowed thousands of leaseholders, with the help of professional managing agents, to benefit from exercising control over their building’s management.
Flat owners (leaseholders) will qualify for the Right to Manage (RTM) if:
• At least two thirds of the flats in the building are on qualifying lease agreements;
• Each lease is for a term of 21 years or more;
• There are at least two flats within the building;
• The non-residential use of the building does not exceed 25 per cent of the total floor space
• 50 per cent flats owners (leaseholders) within the building are in favour of Right to Manage (RTM)
** Please note: Where there is a single development of several individual buildings, each building would need to qualify separately for the Right to Manage (RTM) and make their own applications.
Exercising the Right to Manage (RTM) can often be a complicated procedure. Below are a few facts that are important to remember.
• The Right to Manage (RTM) cannot be exercised by individual flat owners (leaseholders).
• A special company must be set up to exercise the Right to Manage (RTM)
• In order for the company to exercise the Right to Manage (RTM) at least 50 per cent of the qualifying tenants in the building must be members of the company.
• There is no minimum requirement of qualifying tenants to form the company initially
• By law all qualifying flat owners must be invited to become members of the Right to Manage (RTM) company
In order for flat owners (leaseholders) to successfully exercise their Right to Manage (RTM), they must first serve an initial notice inviting other flat owners (leaseholders) to participate. This must contain:
• A statement that the Right to Manage (RTM) company intends to acquire the right to manage;
• The names of the members of the Right to Manage (RTM) company
• An invitation to qualifying flat owners to become members and the implications of joining the Right to Manage (RTM) company
• The name of the directors and company secretary of the Right to Manage (RTM) company
• Click here for more information on what the Right to Manage (RTM) participation notice should include
• The Right to Manage (RTM) is exercised by a Right to Manage (RTM) company on behalf of all participating flat owners…not by those acting on an individual basis
• Legislation must always be checked carefully because there are certain qualifying criteria for the establishment of the Right to Manage (RTM) company
• Process is relatively straightforward if the correct procedures are followed and notice is served. The landlord has the right to respond by the way of Counter-Notice
• Once the Right to Manage has been acquired, the Right to Manage (RTM) company controls the management function of the building along with all the rights and responsibilities that go along with it