KembaraXtra - Legal Terms - Right to Manage (RTM)

The right to manage (RTM) is a statutory right enabling qualifying leaseholders of flats to assume responsibility for managing their building without proving fault on the part of the existing landlord or manager. The right is exercised through a specially formed RTM company. It was introduced to give leaseholders greater control over the management of their homes. No premium is payable to acquire the right. The scheme is governed by leasehold legislation.

To qualify, various statutory conditions must be satisfied. Typically, at least two-thirds of the flats must be held by qualifying tenants whose original leases exceeded twenty-one years. The building itself must satisfy specified eligibility requirements. An RTM company must be properly incorporated before the claim is made. Procedural requirements must also be strictly followed.

Once the RTM company acquires the right, it assumes responsibility for the management functions previously carried out by the landlord or managing agent. These functions include repairs, maintenance, insurance, service charges, and general building management. Ownership of the building does not transfer to the RTM company. The landlord retains the freehold interest. Only management responsibilities change.

The legislation seeks to improve accountability and efficiency in residential building management. Leaseholders gain greater influence over decisions affecting the maintenance and expenditure of their building. The landlord continues to possess certain legal rights and responsibilities despite losing management functions. Disputes may arise regarding compliance with statutory procedures. Tribunals frequently determine such issues.

The right to manage represents an important reform in leasehold law. It empowers leaseholders to participate directly in the administration of their buildings. Proper legal advice is often necessary before commencing an RTM claim because procedural errors may invalidate the application. Successful management requires cooperation among leaseholders. The scheme continues to provide an alternative to landlord-controlled management.