Right to Manage

The Right to Manage (RTM) lets qualifying leaseholders take over the day-to-day management of their building from the landlord — without buying the freehold and without paying a premium. It is established under the Commonhold and Leasehold Reform Act 2002.

What RTM gives you

An RTM company assumes responsibility for running the building: service charge budgets, appointing contractors, insurance, and compliance. Management transfers on a fixed acquisition date if the claim is valid. The landlord does not need to agree — unlike collective enfranchisement, there is no negotiation over whether you may proceed.

Who qualifies

• The building must be wholly or partly residential
• There must be at least two flats
• At least two-thirds of flats must be held by qualifying tenants on long leases
• Usually no more than 25% of internal floor area (excluding common parts) may be non-residential

How the process works

1. Leaseholders form a private company limited by guarantee (the RTM company)
2. A claim notice is served on the landlord and any managing agent
3. Counter-notices and participation notices follow — strict deadlines apply at each stage
4. On the acquisition date, management transfers to the RTM company

Disputes about whether a claim is valid can be referred to the First-tier Tribunal (Property Chamber).

What RTM does not do

• It does not transfer ownership of the freehold
• It does not end the leasehold structure or your lease terms
• The landlord retains certain rights — for example over structural parts in some cases, and as a member of the RTM company

The RTM company manages; it does not own the building.

Running an RTM company in practice

Directors are usually unpaid volunteers from among residents. You will need:

• A company secretary and proper company filings at Companies House
• A solicitor for the claim process (strongly recommended)
• An accountant or managing agent for service charge accounts
• Clear communication with leaseholders — budgets, AGMs, and major works still require transparency

Many RTM companies appoint a professional managing agent to carry out day-to-day tasks while the RTM company sets policy and holds the agent to account.

RTM vs buying the freehold

Right to Manage

• No premium to the landlord
• Landlord keeps the freehold
• Leaseholders initiate the process
• Suits buildings wanting better management without buying

Collective enfranchisement

• Premium required (negotiated or determined)
• Leaseholders acquire the freehold
• Leaseholders initiate the process
• Suits buildings seeking long-term ownership and control

RTM is often a practical first step when residents want better management but are not ready for the cost and complexity of buying the freehold.

Is RTM right for your building?

RTM works best when a core group of residents can commit time for several years. It is less suited to buildings with very high turnover, deep landlord–resident conflict without professional support, or where no one is willing to act as a director.

If you are exploring RTM, speak to a leasehold solicitor and consider contacting other buildings that have been through the process. LEASE publishes detailed guidance on eligibility and procedure.