Right to Manage (RTM) – FAQs for Leaseholders

1. What is the Right to Manage (RTM)?
The Right to Manage is a legal right that allows leaseholders to take control of the management of their building. It means leaseholders, through an RTM company, can choose how their building is run, who manages it, and how service charges are spent.

2. Do we have to prove poor management to claim RTM?
No. Unlike other legal routes, you don’t need to prove bad management or negligence. The right is automatic under the Commonhold and Leasehold Reform Act 2002.

3. Who runs the building once we have RTM?
The RTM company will be able to appoint a professional managing agent who is accountable to us.

4. What are the main benefits of RTM?

• Full transparency over service charges and budgets

• Ability to appoint or change managing agents

• Better value for money by negotiating contracts directly

• Control over the quality of services provided

• A stronger voice and community among leaseholders

5. How many leaseholders are needed to start RTM?
At least 50% of qualifying leaseholders must become members of the RTM company. The more who join, the stronger the case and the more effective the RTM will be.

6. Does it cost anything to join the RTM company?
Becoming a member of the RTM company is free. We are working with Richard Delaney from HAUS Block Management on a no-win, no-fee basis. If the RTM is successful, the cost will be just £95 + VAT per flat. This covers the entire process of setting up and winning RTM rights, shared fairly among members. If we are not successful, there is no cost.

7. Will the freeholder lose all rights?
No. The freeholder still owns the building and retains rights such as collecting ground rent. But management of services and service charges transfers to the RTM company.

8. Is RTM permanent once we have it?
Yes. Once obtained, the RTM remains in place unless leaseholders decide to give it up. It cannot be taken away by the freeholder.

9. How do I become a member of the RTM company?
It’s simple— find your flat on the Join page and click on it to sign up. Membership gives you a voice and a vote in how our building is managed. Every new member takes us one step closer to reaching the 50% threshold we need to take control.

10. What happens to the on-site staff (concierge, cleaners, maintenance) under RTM?
If the building has staff employed directly (e.g., concierge, porters, cleaners), they are protected by employment law. Their jobs and terms are preserved under the TUPE regulations (Transfer of Undertakings (Protection of Employment)). This means that when management transfers to the RTM company (or its appointed agent), the staff transfer too, with their existing rights safeguarded. The RTM company can then oversee their roles and ensure staffing levels and costs deliver value for money.

11. How will RTM help us control costs?
Right now, service charges are set and managed without leaseholders having real oversight. With RTM, leaseholders will have direct control over budgets and expenditure. This means:

• Every contract (cleaning, maintenance, insurance, etc.) can be re-tendered for better prices.

• Expenditure must be transparent and reported in detail.

• Unnecessary or inflated costs can be challenged and removed.

• The managing agent will be accountable to us, not the freeholder.

In short, RTM puts us in charge of how our money is spent, ensuring better value for money and fairer service charges.