The Right to Manage (RTM) process follows a strict legal sequence.
While the right itself is statutory, the process only works if the correct steps are followed in the correct order.
This page explains the RTM process at a high level, focusing on:
- What each step involves
- Why each step matters
- Where problems commonly arise
It does not replace legal advice, but it will help you understand what is happening at each stage.
Step 1: Check the building qualifies
Before anything formal happens, leaseholders need to confirm that the building qualifies for RTM.
In broad terms:
- The building must be self-contained (or capable of independent management)
- At least two flats must be held by qualifying tenants
- No more than 25% of the building can be non-residential
- At least 50% of the flats must participate
Most small residential blocks meet these criteria, but it’s important to confirm this before proceeding.
Step 2: Set up an RTM company
RTM can only be exercised through a dedicated RTM company.
This company:
- Is incorporated as a company limited by guarantee
- Exists solely to acquire and exercise the Right to Manage
- Must be set up before any formal notices are served
Directors are usually volunteer leaseholders.
From this point onwards, the process is driven by the company, not by individuals.
Step 3: Invite all qualifying leaseholders
Before serving a formal claim, the RTM company must invite all qualifying leaseholders to become members.
This step is often overlooked or rushed.
Its purpose is to:
- Give every qualifying tenant the opportunity to participate
- Demonstrate that the process is being handled fairly
- Reduce disputes later
Failure to invite everyone correctly can invalidate later steps.
Step 4: Serve the Claim Notice
The Claim Notice is the formal document that starts the RTM process.
It is served on:
- The freeholder
- Any intermediate landlords
- Relevant third parties
The notice must include specific information and follow prescribed wording.
From this point, statutory timeframes apply.
Mistakes in the Claim Notice are one of the most common reasons RTM claims fail or are challenged.
Step 5: The landlord’s Counter-Notice
After receiving the Claim Notice, the landlord has a set period to respond with a Counter-Notice.
The landlord may:
- Accept the claim
- Dispute eligibility
- Challenge procedural errors
If the claim is disputed, the matter may proceed to tribunal.
If no valid dispute is raised, the RTM process continues automatically.
Step 6: The handover date
If the RTM claim succeeds, management transfers to the RTM company on the handover date specified in the notice.
From this date:
- The RTM company becomes responsible for management
- Existing managing agents may be replaced or retained
- Records, contracts, and information should be handed over
This transition period is where many RTM companies feel the reality of management responsibilities for the first time.
What happens after RTM is acquired?
RTM does not end with the handover date.
From this point onwards, the RTM company must:
- Manage the building on an ongoing basis
- Comply with health and safety requirements
- Maintain accurate financial and compliance records
- Communicate decisions clearly to leaseholders
RTM success depends far more on what happens after acquisition than on the claim itself.
Where the RTM process commonly goes wrong
RTM claims often struggle due to:
- Incorrect or incomplete notices
- Missed statutory deadlines
- Poor communication between leaseholders
- Underestimating ongoing admin and compliance
- Informal decision-making after acquisition
Understanding these risks early helps avoid disputes later.
How this site can help
This site explains:
- The RTM process in plain English
- The responsibilities that follow acquisition
- The practical realities of managing a small block
It is designed to help leaseholders and RTM directors make informed decisions, not to push a particular outcome.
Once RTM is acquired, the focus shifts to running the RTM company and meeting ongoing management responsibilities.
This content is provided for general information only and does not constitute legal advice. Always seek professional advice where appropriate.