Right To Manage
Gain control of the management of your building with The Freehold Collective's Right to Manage (RTM) Service. Our skilled property experts can put management power in your hands, meaning you will call the shots when it comes to managing your block.
We'll make the RTM process simple, so it's less stressful and there are fewer headaches for you and other leaseholders.
What is the Right to Manage?
The Right to Manage is the legal right of leasehold property owners to take over management of the building - even if the landlord doesn't want to hand it over. The Right to Manage applies to all the qualifying leaseholders in any building in England & Wales and is legislated by the Commonhold and Leasehold Reform Act 2002.
At The Freehold Collective, we can help flat leaseholders come together and exercise their right to take over the management functions of their building, in line with their statutory rights.
The Benefits of Right To Manage For Leaseholders?
For leaseholders, having the Right To Manage has a number of benefits:
- Don't have to go through landlord or management company for management decisions
- Complete control over how communal areas of the building are managed
- Can choose and appoint your own professional managing agent for added protection
- Can opt for self-management if appropriate, and you want to save money for company funds
The Benefits of Right To Manage For Leaseholders?
To exercise the Right to Manage (RTM), certain legal conditions must be met. These requirements are laid out in the Commonhold and Leasehold Reform Act 2002 and are designed to ensure that only eligible leaseholders in qualifying buildings can take over management responsibilities.
Typically, RTM is available to leaseholders of purpose-built or converted apartment blocks in England and Wales. If your building meets the criteria and the majority of leaseholders are on board, you may be eligible to set up an RTM company and begin the legal process of transferring management from the freeholder or existing agent.
To qualify for Right to Manage:
- The building must be made up of flats (not commercial units alone)
- At least two-thirds of the flats must be held on long leases (21 years or more)
- At least 50% of the leaseholders in the building must agree to participate
- The building must be self-contained, or if it’s part of a larger building, it must be capable of being independently managed
- The building must not fall under exempt categories such as local authority housing
At The Freehold Collective, we’ll help assess your eligibility, set up your RTM company, and guide you through each step of the process with expert support.
Our Right To Manage Process
Why Choose the Freehold Collective?
At The Freehold Collective, we focus on providing comprehensive project management for your RTM company formation. From initial interest through legal processes to gaining management functions, your dedicated project manager will walk you through every step of the way.
We're ready and waiting to help you take control of your building's management.
Right To Manage vs Freehold Purchase
While an RTM company acquires management duties for a building, they do not acquire the building itself. The freeholder is still sitting over you, and you are essentially looking after their property. To rid yourselves of them forever, leaseholders come together and undergo Collective Enfranchisement, to purchase the building's freehold. Freehold acquisition offers total control of management as well as ownership of the building itself, providing additional benefits for current leasehold property owners.
Right To Manage FAQs
What responsibilities will I have after exercising the Right to Manage?
When an RTM company acquires their Right to Manage, they take over certain management responsibilities that replace the landlord’s management functions, such as arranging building maintenance, insurance, service charges, and hiring contractors. Any qualifying tenant that is part of the RTM company of your residential property will hold equal responsibility for this decision-making, organising management fees and service charge payments, and compliance with legal duties.
Will leasehold and freehold reform affect the Right to Manage?
While upcoming reforms to the leasehold system may simplify or enhance leaseholder rights, the Right to Manage is already law and remains accessible. It’s expected that any changes will support, rather than limit, the ability of leaseholders to take control of their buildings.
Do I need the landlord's consent to exercise the Right to manage?
No, you do not need the landlord’s consent. Once the RTM process is initiated, the landlord is legally entitled to respond with a counter notice, but they cannot prevent the transfer of management if the qualifying conditions are met. Landlord disputes are one key area that The Freehold Collective can support you in if you are concerned this may be an issue.
Are there any exemptions to the Right to Manage?
Yes, there are some exemptions. For example, buildings where the resident landlord exemption applies (typically small buildings where the landlord lives in the property as their only or principal home) may not qualify. Another exemption applies where the immediate landlord of any qualifying tenant is a local housing authority.
Do I need to prove bad management to claim for the Right to Manage?
No, the Right to Manage is a non-fault, statutory right, which means you do not need to prove poor or bad management to claim it. Under the Commonhold and Leasehold Reform Act 2002, leaseholders have the right to take over management regardless of how well, or poorly, the building has been run.
Free Consultation
We’d love to hear from you. Send us a message on any Right To Manage matter, and we’ll be in touch to book your free initial consultation.