How the right to manage works

What it is

The right to manage (RTM) lets qualifying leaseholders take over the management of their building from the landlord, through a company they control. They do not need to prove the landlord did anything wrong, and they do not pay for the freehold.

Who qualifies

• The building must be self-contained (or a self-contained part) with at least two flats.
• At least two-thirds of the flats must be held on long leases (usually over 21 years).
• No more than 50% of the internal floor area can be non-residential (since March 2025).
• Some buildings are excluded, for example where a local authority is the landlord or there is a resident landlord in a small conversion.

The steps

1. Form an RTM company using the prescribed model articles.
2. Invite all qualifying tenants who are not yet members to participate, with a notice of invitation.
3. Serve the claim notice on the landlord once at least half of the flats’ qualifying tenants are members. The claim notice gives a date at least three months ahead for acquiring the right.
4. Counter-notice: the landlord has at least a month to admit or dispute the claim. Disputes go to the First-tier Tribunal.
5. Acquisition date: the RTM company takes over management functions. Uncommitted service charge funds are paid over.

Costs

Since 3 March 2025, leaseholders generally no longer pay the landlord’s costs of an RTM claim.

After you take over

The RTM company takes on the management duties under the leases, including services, repairs, insurance (unless the lease says otherwise) and compliance. It must keep the landlord informed of some matters and give approvals under the leases.