Right to Manage (RTM) is a legal right in England and Wales that allows qualifying leaseholders to take over the management of their building without buying the freehold.
If an RTM claim is successful, management responsibilities transfer from the freeholder or managing agent to an RTM company formed by the leaseholders.
Where does Right to Manage come from?
RTM was introduced to give leaseholders more control over how their building is managed, particularly where management standards or costs are a concern.
If an RTM claim is successful, management responsibilities transfer from the freeholder or managing agent to an RTM company formed by the leaseholders.
RTM was introduced to give leaseholders more control over how their building is managed, particularly where management standards or costs are a concern.
What changes when leaseholders take over management?
Once RTM is acquired, the RTM company becomes responsible for the day-to-day management of the building.
This typically includes:
- Appointing or replacing managing agents
- Arranging maintenance and repairs
- Managing service charge budgets
- Ensuring health and safety compliance
- Keeping records and communicating with leaseholders
The freeholder remains the owner of the building, but no longer controls management decisions covered by RTM.
What Right to Manage does not do
RTM is often misunderstood. It does not:
- Transfer ownership of the building
- Remove the freeholder entirely
- Eliminate legal or regulatory responsibilities
- Mean the building is “self-managing” by default
RTM replaces who manages the building, not the obligations involved in managing it.
This distinction is where many first-time RTM directors run into difficulty.
Which buildings qualify for RTM?
In general terms, a building may qualify if:
- It is a self-contained building or part of a building
- At least two flats are held by qualifying tenants
- No more than 25% of the building is used for non-residential purposes
- At least half of the flats participate in the RTM claim
There are exceptions and edge cases, but most small blocks of flats meet the criteria.
What is an RTM company?
An RTM company is a limited company set up specifically to acquire and exercise the Right to Manage.
It:
- Is owned by participating leaseholders
- Is run by directors (usually volunteer leaseholders)
- Takes legal responsibility for management once RTM is acquired
The company must be formed before the RTM process begins and must follow specific rules around notices, membership, and governance.
Being a director of an RTM company carries real responsibilities, not just decision-making authority.
How does the RTM process work? (overview)
At a high level, the RTM process involves:
- Setting up an RTM company
- Serving formal notices on the freeholder
- Allowing statutory response periods
- Acquiring management on the “handover date”
Each step has strict requirements. Errors in notices or timelines are a common reason RTM claims fail or are delayed.
(This site covers the process in detail elsewhere.)
Is Right to Manage always a good idea?
RTM can work very well where:
- Leaseholders are organised
- Responsibilities are understood upfront
- Administration is taken seriously
- Expectations are realistic
RTM can struggle where:
- No one wants to handle ongoing admin
- Records are poorly kept
- Decisions are informal or undocumented
- Directors underestimate compliance obligations
RTM is not just a legal step — it is an ongoing operational commitment.
How this site can help
This site exists to explain RTM before problems arise.
It focuses on:
- Plain-English explanations
- Practical realities, not just legal theory
- The experience of running RTM in small blocks
- Common mistakes and how to avoid them
It does not provide legal advice, but it helps leaseholders and RTM directors understand what questions they need to ask.
Once the basics of RTM are understood, the next step is to understand how the Right to Manage process works in practice, including the formal notices and timelines involved.
This content is provided for general information only and does not constitute legal advice. Always seek professional advice where appropriate.