Right to Manage (RTM) involves specific legal and management terms that are often misunderstood or used inconsistently.
This glossary explains common RTM-related terms in plain English, based on how they are used in practice in England and Wales.
Right to Manage (RTM)
A statutory right that allows qualifying leaseholders to take over the management of their building without buying the freehold, provided the legal process is followed correctly.
RTM company
A company limited by guarantee that is formed specifically to acquire and exercise the Right to Manage.
RTM can only be exercised by a company that meets the statutory definition of an RTM company.
Qualifying tenant
A leaseholder who holds a long lease and meets the legal criteria to participate in a Right to Manage claim.
Not all leaseholders automatically qualify.
Claim Notice
The formal notice served by the RTM company on the freeholder and other relevant parties to start the RTM process.
It must follow prescribed wording and timelines.
Counter-Notice
The formal response from the landlord or freeholder to the RTM Claim Notice.
It may accept the claim or dispute eligibility or procedural compliance.
Handover date
The date on which management responsibilities legally transfer to the RTM company following a successful claim.
Freeholder
The person or entity that owns the freehold interest in the building.
RTM does not remove the freeholder’s ownership, only their control over management functions.
Intermediate landlord
A landlord who holds an interest between the freeholder and the leaseholder, such as a head lessee.
They may need to be served notices as part of the RTM process.
Residents’ Management Company (RMC)
A company formed to manage a building, often as part of the original lease structure.
An RMC cannot exercise the Right to Manage unless it complies fully with the legal requirements of an RTM company.
Managing agent
A professional company or individual appointed to manage a building on behalf of the freeholder or RTM company.
Under RTM, the RTM company controls whether an agent is appointed and on what terms.
Service charge
Payments made by leaseholders to cover the cost of managing, maintaining, and insuring the building.
RTM companies are responsible for managing service charges once RTM is acquired.
Health and safety compliance
The legal obligations relating to the safety of residents and visitors, including fire safety, risk assessments, and equipment inspections.
RTM companies assume responsibility for these obligations after acquisition.
Articles of association
The governing rules of a company.
RTM companies must use articles that comply with statutory RTM requirements, rather than bespoke or restrictive rules.
Tribunal
A legal body that may hear disputes relating to RTM claims, eligibility, or procedural compliance if a claim is challenged.
Block of flats
A building containing multiple residential units.
RTM applies primarily to self-contained blocks or parts of buildings capable of independent management.
Many people ask wether RTM removes the freeholder completely, find out more in our FAQ section
This glossary provides general explanations only.
The legal meaning of terms may depend on specific circumstances and legislation in force at the time.
This content is provided for general information only and does not constitute legal advice. Always seek professional advice where appropriate.