These are some of the most common questions leaseholders and RTM directors ask when considering or running Right to Manage.
The answers are written in plain English and focus on how RTM works in practice in England and Wales.
What is Right to Manage (RTM)?
Right to Manage (RTM) is a legal right that allows qualifying leaseholders to take over the management of their building without buying the freehold.
If successful, management responsibilities transfer to an RTM company set up by the leaseholders.
Do leaseholders need to buy the freehold to get RTM?
No.
RTM allows leaseholders to take over management without purchasing the freehold.
Ownership of the building remains with the freeholder.
Can any block of flats use Right to Manage?
No.
Only buildings that meet specific legal criteria qualify.
Most small residential blocks qualify, but there are exceptions relating to:
- Mixed-use buildings
- Participation levels
- Building structure
Eligibility should be checked before starting the process.
How many leaseholders need to take part in an RTM claim?
At least 50% of the qualifying tenants in the building must participate in the RTM claim.
All qualifying leaseholders must be invited to join the RTM company, even if they choose not to take part.
Does RTM remove the freeholder completely?
No.
RTM removes the freeholder’s control over management functions, but the freeholder:
- Remains the owner of the building
- Retains certain rights and responsibilities
- Must still be consulted on some matters
RTM changes management control, not ownership.
Do RTM companies still need a managing agent?
No.
Some RTM companies self-manage, while others appoint a managing agent.
Even where an agent is appointed, the RTM company remains legally responsible and retains control over decisions.
Is Right to Manage difficult to run?
RTM is not necessarily difficult, but it does involve ongoing responsibilities.
RTM companies must:
- Manage compliance
- Keep records
- Handle finances
- Communicate clearly with leaseholders
Problems usually arise when these responsibilities are underestimated.
Can an existing residents’ management company (RMC) use RTM?
Only if it complies fully with the legal requirements for an RTM company.
Most RMCs do not meet these requirements and a separate RTM company is usually formed instead.
What happens if the freeholder disputes the RTM claim?
If the freeholder disputes the claim, the matter may be referred to a tribunal.
Disputes often relate to:
- Eligibility
- Procedural errors
- Incorrect notices
Following the process carefully reduces the risk of disputes.
How long does the RTM process take?
The RTM process typically takes several months, depending on:
- Statutory notice periods
- Whether the claim is disputed
- How organised the RTM company is
Delays are often caused by paperwork errors or missed deadlines.
Who is responsible for health and safety after RTM?
Once RTM is acquired, the RTM company becomes responsible for health and safety compliance relating to the building.
This includes fire safety and other statutory obligations.
Are RTM directors personally liable?
RTM directors generally benefit from limited liability, but they still have legal duties as company directors.
Failing to comply with legal or safety obligations can expose the company — and in some cases directors — to risk.
Professional advice is often recommended.
Is RTM always the right solution?
RTM can work very well for some buildings, but it is not suitable for every situation.
RTM works best where:
- Leaseholders are organised
- Responsibilities are understood
- Administration is taken seriously
It is important to approach RTM with realistic expectations.
These FAQs provide general guidance only.
Specific circumstances may require professional or legal advice.
This content is provided for general information only and does not constitute legal advice. Always seek professional advice where appropriate.