The Right to Manage (RTM) was introduced through the Commonhold and Leasehold Reform Act 2002.  It gives leaseholders the statutory right to take over the management of their property from the landlord by setting up a special company – a right to manage company.
RTM is popular for leaseholders who want more control over how their property is maintained and how the service charge and sinking fund monies are spent.

Importantly, RTM is non-fault based, meaning leaseholders don’t have to prove that the managing agent has been negligent or otherwise in order to take over control of their property.

RTM is generally considered a positive step for leaseholders who most often want to improve the service and reduce costs within their block.

Right To Manage has a number of advantages:

  • Allows RTM co to employ their choice of managing agent and contractor
  • The ability to help, advise and make critical decisions on matters likes of day-to-day management, maintenance of your development and major works
  • RTM likely to add value to your property.


Qualifying criteria to apply for RTM

  • Your block must be completely self-contained/detached from any other building. This includes any underground facilities such as parking, gym etc.
  • Your block must have enough qualifying tenants
  • To be eligible for right to manage, two or more of the flats must be held by qualifying tenants and the total number of flats held by those tenants must not be less than two thirds of the total number of flats. A qualifying tenant is a leaseholder whose lease was originally granted for a term of more than 21 years.
  • This means that in a block of eight flats, at least six must be held by qualifying tenants, and in a block of 20 flats, at least 14 must held by qualifying tenants.
  • The participating tenants must be at least 50% of the total number of flats at the date the notice is served (with a minimum of two participators).
  • No more than 25% of the block may be used for non-residential use (excludes car parks and common areas).

Davies Daniel can assist you with every aspect of your Right To Manage application. Contact us for advice, support and guidance.