Acquiring the Right to Manage is only the beginning.
Once RTM is in place, the RTM company becomes legally responsible for managing the building on an ongoing basis.
This page explains what running an RTM company actually involves in practice, particularly for directors in small residential blocks.
It focuses on:
- Ongoing duties (not just decision-making)
- Legal and compliance responsibilities
- The realities of administration and record-keeping
What does an RTM director actually do?
RTM directors are responsible for ensuring that the company manages the building properly and lawfully.
In practice, this usually means:
- Making decisions on behalf of the company
- Overseeing managing agents or contractors
- Ensuring legal and safety obligations are met
- Keeping records and documentation up to date
- Communicating decisions to leaseholders
RTM directors are typically volunteers, but the responsibilities they take on are real and ongoing.
Legal and compliance responsibilities
Once RTM is acquired, the RTM company must comply with the same legal and regulatory requirements that applied to the previous manager.
This commonly includes:
- Fire safety obligations
- Health and safety risk assessments
- Asbestos management (where applicable)
- Electrical and gas safety compliance
- Lifts and equipment inspections (if relevant)
Failure to comply can expose the RTM company — and its directors — to legal and financial risk.
Managing service charges and finances
RTM companies are responsible for handling service charge funds correctly.
This typically involves:
- Setting and collecting service charges
- Managing a dedicated company bank account
- Paying contractors and suppliers
- Keeping accurate financial records
- Preparing accounts and summaries for leaseholders
Even in small blocks, financial transparency is critical.
Poor record-keeping is one of the most common causes of disputes.
Record-keeping and documentation
RTM companies are expected to maintain clear and accessible records.
This usually includes:
- Company documents and filings
- Insurance policies
- Safety certificates and reports
- Maintenance records
- Contracts and invoices
- Meeting notes and decisions
Many RTM companies underestimate how quickly documentation accumulates — even in blocks with only a few flats.
Managing agents and contractors
RTM does not require leaseholders to manage everything personally.
RTM companies may:
- Appoint a managing agent
- Use specialist contractors
- Combine professional support with resident oversight
However, even where agents are used:
- Responsibility ultimately sits with the RTM company
- Directors remain accountable for decisions
- Oversight cannot be delegated away entirely
RTM changes who controls the relationship, not whether professional help is needed.
Communication between leaseholders
Clear communication is one of the most important — and most challenging — aspects of running an RTM company.
RTM directors often need to:
- Explain decisions to other leaseholders
- Balance differing views and priorities
- Document decisions clearly
- Avoid informal or undocumented arrangements
Poor communication can be a common source of tension, even where management itself is sound.
Where RTM companies often struggle
RTM companies often struggle not because of bad intentions, but because of:
- Underestimating ongoing workload
- Informal decision-making
- Inconsistent record-keeping
- Director burnout
- Lack of structure as responsibilities grow
Understanding these pressures early allows RTM companies to put systems in place before problems arise.
Is running an RTM company worth it?
For many blocks, RTM works well when:
- Responsibilities are shared
- Administration is taken seriously
- Expectations are realistic
- Professional support is used appropriately
RTM is rarely “hands-off”, but it can provide better control, transparency, reduced costs and outcomes where leaseholders are prepared for the role.
How this site can help
This site focuses on:
- Explaining RTM responsibilities clearly
- Highlighting practical realities
- Helping leaseholders decide whether RTM is right for their block
- Supporting RTM directors with plain-English guidance
It is designed to inform decisions, not to promote a particular model of management.
Understanding the process is important, but many RTM problems arise from common mistakes made before and after acquisition.
This content is provided for general information only and does not constitute legal advice. Always seek professional advice where appropriate.