KembaraXtra - Legal Terms - RTM (Right to Manage)

RTM stands for Right to Manage. It is a statutory right allowing qualifying leaseholders of flats to assume management of their building. They do not have to prove fault by the existing landlord or manager. The right is exercised through a specially formed RTM company. The purpose is to give leaseholders greater control over property management.

The RTM company must satisfy statutory conditions before acquiring management rights. Generally, at least two-thirds of the flats must be held by qualifying tenants. A qualifying tenant usually holds a long lease originally granted for more than twenty-one years. The company must follow the prescribed legal procedure. Failure to comply may invalidate the claim.

Once the RTM company acquires the right, it assumes responsibility for management functions. These include repairs, maintenance, insurance, services, and general building management. Ownership of the building does not transfer. The landlord retains ownership while management responsibilities pass to the RTM company. This distinction is important in leasehold law.

The Right to Manage was introduced to improve accountability in residential property management. Leaseholders often experience difficulties with poor management or excessive service charges. RTM offers an alternative without requiring proof of misconduct. It therefore provides a practical remedy for dissatisfied leaseholders. The statutory scheme seeks to balance landlord and tenant interests.

RTM has become an important feature of leasehold reform. It empowers leaseholders to participate directly in managing their buildings. Proper management can improve maintenance standards and financial transparency. However, the RTM company must fulfil significant legal and administrative responsibilities. Successful operation depends upon effective cooperation among leaseholders.