Right to Manage (RTM)

Take Control of Your Block’s Management

If leaseholders are unhappy with how a block is being managed—or simply want more control—they may be able to exercise the Right to Manage (RTM). This transfers the management responsibilities from the freeholder/landlord to a Right to Manage company (RTM Co.) run by leaseholders. You can then appoint your preferred managing agent (like us), or manage certain functions yourselves.

Who Can Use Right to Manage? (Eligibility Overview)

To qualify, the building and participating leaseholders generally need to meet these conditions:

  • Qualifying tenants: At least two-thirds of flats must be held by qualifying tenants (original lease term over 21 years).

  • Participation threshold: The RTM claim must be made by qualifying tenants in at least half of the total flats (e.g., 5 of 10). If there are only 2 flats, both must participate.

  • Mixed-use allowance: The building can include commercial space, but non-residential floor area must not exceed 25% (common parts excluded).

  • Resident-landlord exemption: RTM can’t be used where all of the following apply:

    • The building is a conversion (not purpose-built), and

    • It contains no more than 4 flats, and

    • The freeholder or a close family member has lived in one flat as their only or principal home for at least 12 months before the claim.

  • Local authority landlords: Where the landlord is a local housing authority, RTM is not available.

Estates with multiple blocks: RTM is block by block—each block must make its own claim.

What RTM Lets You Do

Once the RTM company acquires the right:

  • Leaseholder directors decide who manages the block (self-manage or appoint a managing agent).

  • The RTM Co. takes over day-to-day management: service charges, maintenance, major works planning, health & safety compliance, and insurance administration (subject to the lease terms).

  • The freeholder retains rights set by law/lease (e.g., to be a member of the RTM Co., to receive notices, and to be consulted).

The RTM Process (Plain-English Steps)

  1. Check eligibility & interest – confirm the building qualifies and secure enough participating leaseholders.

  2. Form the RTM company – a limited company with standard RTM articles; participating leaseholders become members/directors.

  3. Serve required notices – including Notices Inviting Participation on other leaseholders and the Claim Notice on the landlord/others.

  4. Landlord response period – the landlord may serve a counter-notice (e.g., disputing eligibility).

  5. Acquisition date – if valid and unopposed (or after any dispute is resolved), management transfers on the set date.

  6. Handover – collect records, contracts, funds, and agree practical arrangements for a smooth transition.

If the landlord is absent or cannot be traced, the claim can still proceed—with appropriate evidence and, if needed, application to the First-tier Tribunal (Property Chamber).

How Hastings Property Management Helps

  • Feasibility check: We assess eligibility, lease structures, participation thresholds, and any tricky points (mixed use, conversions, landlord status).

  • RTM company setup: We can incorporate the company, act as Company Secretary, and handle filings.

  • Notices & timetable: We prepare and serve all required notices correctly and on time, managing statutory deadlines.

  • Landlord/agent liaison: We coordinate handover of records, funds, contracts, and compliance documents.

  • Post-acquisition management: If appointed, we provide full block management, including budgets, service charge collection, maintenance, H&S compliance, and transparent reporting via our client portal.

Prefer to self-manage? We can tailor a lighter-touch service or provide consultancy during the transition.

FAQs (Quick Answers)

Do leaseholders need the freeholder’s permission to use RTM?
No—RTM is a statutory right if eligibility and procedure are met.

Does every leaseholder have to join?
No—but you must hit the minimum participation (half of all flats), and all qualifying leaseholders must be invited.

What if the landlord objects?
They may serve a counter-notice. Disputes are usually determined by the First-tier Tribunal. If your claim is valid, management will still transfer.

Who pays the costs?
The RTM Co. typically covers its own reasonable costs and certain landlord costs relating to the claim. We’ll explain expected costs upfront.

Can we change managing agents after RTM?
Yes—the RTM directors choose who manages and can change agents in line with contract terms.

Ready to Explore RTM for Your Block?

We handle RTM projects across East Sussex and beyond, from eligibility checks to full takeover and ongoing management.

📧 office@hastingspropertymanagement.co.uk