What Is the Right to Manage and How Does It Work for Tenants?

Right to Manage uk
March 16, 2026

Do you want to understand how tenants can manage building services legally? The Right to Manage allows leaseholders to take responsibility for repairs, maintenance, and daily management tasks. By forming an RTM company, tenants can organise management duties with help from a trusted Property Management Company. This legal right gives leaseholders more control and influence over how their building is managed.

Right to Manage Mean for Flat Leaseholders

What Does the Right to Manage Mean for Flat Leaseholders?

RTM company allows the eligible flat tenants to take charge of running their property even if the landlord has not done anything wrong. Because under the Commonhold and Leasehold Reform Act 2002, the tenants can form an RTM company to provide repairs, maintenance, insurance, and services. These rights give tenants the right to decide on managing agents and control budgets.

Apply for the Right to Manage a Property

Who Can Apply for the Right to Manage a Property?

The eligibility criteria for the tenants to manage the RTM company are given below in the table:

Eligible for RTMNot Eligible for RTM
Buildings with two or more self‑contained flatsBuildings with fewer than two self‑contained flats
Leaseholders with long leases (over 21 years)Flats with short leases (less than 21 years)
Over 50% of flats are held by qualifying leaseholdersLeaseholders do not make up the majority of qualifying flats
Less than 50% of the total floor area is non‑residentialNon‑residential floor space exceeds 50% of the building
Leaseholders forming a valid RTM companyRTM rights already transferred, or the resident landlord exemption applies
Steps of Right to manage

What Are The Steps Involved In Using The Rights to Manage?

The steps that are involved in exercising the RTM are given below:

Documents Required to Start the Process

To start the process, tenants need to prepare several important documents to make sure that the application is valid and legally compliant. These include the following documents 

  1. Notice of Claim
  2. List of Qualifying Leaseholders
  3. Proof of Lease
  4. Building Information
  5. RTM Company Formation Documents

Serve the Notice to the Landlord

After preparing the required documents next step is to give the notice to the landlord. This notice informs the landlord that the tenants want to take over management under the statutory management right. Once the landlord receives the notice, they have to respond and raise any valid objections within the required time. If the landlord does not answer within the given time, the tenants can proceed to take over management legally.

If The Landlord Disputes the RTM

In the case that the landlord does not agree with this and raises objections to the RTM claim. Then tenants must address it through a formal process, usually by the First-tier Tribunal.

Set Up a Right to Manage Company

How Long Does It Take to Set Up a Right to Manage Company?

Setting up an RTM company usually takes three to six months, depending on how smoothly the process runs. Time is required to form this company, prepare documents, and serve the required notices to the landlord. They are given a fixed period to respond or raise objections, which can affect the timeline. If no dispute arises, the RTM company can take over management shortly after the notice period ends. But the tribunal disputes or missing documents can extend the process further

Costs Associated with the RTM

What Are the Costs Associated with the RTM?

The costs that are associated with the RTM are explained below in a table:

Cost TypeWhat It Covers
RTM company formationCompany registration and basic setup costs
Legal notice preparationDrafting and serving required RTM notices
Professional adviceSolicitor or surveyor support, if used
Landlord’s reasonable costsLegal and administrative costs for responding to the claim
Ongoing management costsManaging agents, maintenance, repairs, and services
Benefits of Exercising the RTM

What Are the Benefits of Exercising the RTM?

The benefits of the RTM company that the leaseholder gets are given below

Greater Control and Transparency

  • Leaseholders gain authority over repairs, maintenance, and service charges.
  • Enables efficient use of funds and better decision-making.
  • Provides clear insight into how the building is managed.

Improved Accountability and Building Standards

  • Tenants can appoint or replace managing agents and contractors.
  • Leaseholders collectively oversee management tasks, ensuring a higher quality of service.
  • Helps maintain higher building standards and protects property investment.

Cost Management and Efficiency

  • Leaseholders can monitor budgets and reduce unnecessary expenses.
  • Enables better planning for repairs and improvements.
  • Helps avoid overcharging or mismanagement by the landlord or agent.
Pros and Cons of the Leaseholder Management

What are the Pros and Cons of the Leaseholder Management?

The important pros and cons of the RTM company are given below:

Pros

  1. Leaseholders have full control over the repairs and maintenance. They can make a budget by reducing unnecessary costs.
  2. They are free to make a fair and transparent decision.
  3. RTM helps the leaseholders to select or choose the right contractor that helps in improving the quality of work and decreasing the costs.
  4. Exercising RTM is a statutory right, which is why the landlord cannot claim compensation.
  5. The major benefit of it is that with direct control, delays are minimised and important works are done at the priority level.

Cons

  1. Leaseholders may need to cover reasonable takeover costs, and this can sometimes be challenged.
  2. Running an RTM company takes effort and requires regular participation from all members.
  3. Conflicts can happen if freeholders or some leaseholders disagree with management decisions.
  4. Managing reports and accounts for compliance can take time and may need professional help.
Compare to the Right to Manage

What Is Commonhold and How Does It Compare to the Right to Manage?

The differences between Commonhold and the RTM help leaseholders make informed decisions about ownership and management. The table below highlights key distinctions in control, ownership, and legal rights.

FeatureCommonhold(RTM)
OwnershipFlat owners own their units outrightLeaseholders remain tenants; the landlord keeps ownership
Management ControlManaged through a commonhold associationManaged by an RTM company formed by leaseholders
Lease ExpiryNo lease, ownership is permanentLease continues, but RTM only affects management
Ground RentNoneLeaseholders may still pay ground rent
Decision-MakingCollective decisions via a commonhold associationCollective management via the RTM company
Legal RouteStandard property ownership structureStatutory right under the Commonhold and Leasehold Reform Act 2002

Conclusion

According to the legal rights under the 2002 Act, leaseholders can take over property management by forming a Right to Manage company. The landlord cannot interfere in this management process once the legal procedure is followed. It empowers the tenants to make repairs, maintenance, and service charges by keeping transparency. They can also get professional guidance and support through a trusted Property Management Company for the RTM process.

Frequently Asked Questions

The average cost for each flat is £300. In addition, there are some unknown costs such as the freeholder’s legal expenses that will be covered by the RTM company. These costs should be reasonable and fair according to the property law.

The persons who lease the property first form a legal registered property before taking control of the management process. They should give notice to the landlord in which they mention their intent to take the management responsibilities. 

For this criteria building should have  2 or more self-contained flats for tenants to qualify for the RTM company. At least 50% of leaseholders must agree to participate and hold qualifying long leases over twenty-one years. Non-residential areas must not exceed 50% of the total building floor space legally.

This management process can take 3 to 6 months, but it mainly depends on the landlord’s cooperation and requires document readiness. The reason delay can be landlord and tenant disputes or incorrect document data. Sometimes, due to the tribunal’s proceedings, delays can occur for more than six months for the final transfer.

A Notice of Claim formally notifying the landlord of the intended management takeover is required.  A list of qualifying leaseholders, proof of lease, and building information must also be submitted. Legal documents confirming the RTM company’s incorporation ensure that leaseholders can assume management responsibilities lawfully.

Once management duties transfer, the landlord retains ownership but no longer oversees daily building maintenance. Leaseholders assume responsibility for repairs, service charges, and appointing managing agents or contractors efficiently. The landlord still maintains certain legal obligations, but tenant management handles operational decisions directly.

Leaseholders can withdraw support before the tribunal confirms the management transfer legally and formally. Once the RTM company assumes control, reversing decisions becomes complex and requires legal consultation. Timely communication among leaseholders ensures clarity and avoids disputes during the management takeover process.

Professional firms guide leaseholders through forming the RTM company and preparing legally compliant documents. They can act as managing agents, handling maintenance, repairs, and financial management efficiently. Their expertise reduces errors, streamlines the statutory process, and improves decision-making for tenant management.

Leaseholders gain management control but do not own the building or land under the property. Commonhold or freehold grants full ownership, whereas RTM only transfers operational responsibilities to tenants. RTM addresses management efficiency, transparency, and accountability without altering legal ownership of the flats.

Specialist solicitors and property consultants provide guidance on legal requirements and eligibility criteria. Authoritative sources like the GOV.UK  and Leasehold Advisory Service offer detailed, up-to-date instructions online. Professional property management companies also assist with practical steps, documents, and dispute resolution advice.

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