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What Is RTM? A Guide for Leaseholders Who Want More Control

Letting
Posted in   Oct 22 , 2026

Rising service charges, delayed repairs, and unanswered questions about building maintenance can leave leaseholders feeling they have little control over their own homes. 

What is RTM, and can it help? RTM stands for Right to Manage. It allows qualifying leaseholders of flats to take over certain building management responsibilities from their freeholder without buying the freehold or proving that the current management has done anything wrong.

Can We Take Control of Our Building Without Buying the Freehold?

The Right to Manage (RTM) gives qualifying leaseholders the legal right to take over the management of their building through an RTM company. This company is responsible for managing the building once the right takes effect.

RTM does not transfer ownership of the building. The freeholder still owns the freehold, but qualifying leaseholders gain control over the management functions covered by the law.

You also do not need to prove that your current managing agent has performed poorly. RTM may appeal to leaseholders who want more say over repairs, service-charge spending and the way communal areas are maintained.

Read LEASE's guide to how the Right to Manage works for an overview of the process and responsibilities.

Does Our Building Qualify for Right to Manage?

Not every property qualifies. Before taking action, leaseholders should check the main eligibility requirements. A building will generally need to meet these conditions:

  • It contains at least two flats. The statutory right applies to qualifying blocks of flats, not individual houses.

  • At least two-thirds of the flats have qualifying leases. These are generally long leases originally granted for more than 21 years.

  • At least half of the flats join the RTM company. These members must be in place before the company takes over management. If the building has only two flats, both leaseholders must participate.

  • At least half of the building's relevant floor area is residential. Non-residential areas, such as shops and offices, must not exceed 50% of the relevant floor area.

Exceptions can apply, including certain buildings where the freeholder lives in a small converted property. The full legal conditions should be checked before proceeding.

The rules changed in March 2025, including an increase in the permitted non-residential floor area from 25% to 50%. In most cases, leaseholders also no longer have to pay the freeholder's legal costs simply because they make an RTM claim. Other costs may still apply.

Check the official Right to Manage eligibility requirements before deciding whether your building qualifies.

How Do We Start RTM Without Making Costly Legal Mistakes?

The process involves formal steps, and getting the notices wrong can lead to disputes or delays. Leaseholders should consider specialist legal advice before starting. The usual process involves:

  1. Discussing the proposal: Find out which leaseholders are interested and explain the responsibilities involved.

  2. Setting up an RTM company: This is the company that will take over the relevant management functions.

  3. Inviting leaseholders to participate: The required notice must be served on qualifying leaseholders who have not joined or agreed to join.

  4. Serving the claim notice: The RTM company formally notifies the landlord that it is claiming the right.

  5. Dealing with any dispute: The landlord may serve a counter-notice. If the claim is challenged, the matter may need to go to a tribunal.

  6. Preparing for handover: The company arranges management services and prepares to take responsibility on the relevant date.

In August 2026, the Supreme Court clarified how certain failures in the notice-inviting-participation procedure affect an RTM claim. This does not mean notices can be ignored. Read the Supreme Court's judgment in the Cresta Court RTM case for the official decision.

Will RTM Reduce Our Service Charges or Just Give Us More Responsibility?

RTM can give leaseholders more control over how the building is managed and how service-charge money is handled. However, it does not guarantee lower bills. An RTM company may need to pay for:

  • Legal advice and company setup.

  • A professional managing agent, if one is appointed.

  • Repairs, insurance and communal maintenance.

  • Safety checks, contractor services and major works.

  • Accounting, administration and other management duties.

The March 2025 reforms removed the requirement to pay the freeholder's legal costs in most RTM claims, but the RTM company still needs to cover its own costs.

What Happens If We Take Over but Don't Know How to Manage the Building?

Taking control is only the beginning. The RTM company becomes responsible for important management tasks, and its directors need to ensure that the building is properly managed. These responsibilities can include:

  • Preparing budgets and collecting service charges.

  • Keeping financial records and reporting spending.

  • Arranging repairs and maintaining communal areas.

  • Managing contractors and planning major works.

  • Handling relevant insurance and safety requirements.

  • Communicating with residents and dealing with complaints.

Residents may be willing to improve the building but lack the time or experience to handle these tasks themselves. Before proceeding, consider who will oversee the work and how the company will manage its legal and financial responsibilities.

Can We Appoint a Managing Agent After Taking Over?

Yes. An RTM company can appoint a professional managing agent to handle day-to-day work while the company retains its management role.

A managing agent can help with budgets, service-charge collection, repairs, contractor coordination, major works, compliance support and communication with residents. This can make the workload more manageable for leaseholders who want control without personally handling every task.

The important point is to choose an agent whose services match the building's needs and to understand which decisions remain with the RTM company's directors.

How Cribs Estates Helps Manage Residential Buildings

Cribs Estates provides block management services across South London, working with leaseholders, freeholders and Resident Management Companies. Its services include service-charge collection, budgeting, financial reporting, communal maintenance, major works coordination, safety checks and resident communication.

If your RTM company needs professional support with the ongoing management of its building, explore Cribs Estates' block management services in South London. You can also read its guide to what block management involves.


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What Is RTM? A Guide for Leaseholders Who Want More Control

Rising service charges, delayed repairs, and unanswered questions about building maintenance can leave leaseholders feeling they have little control over their own homes. What is RTM, and can it help? RTM stands for Right to Manage. It allows qualifying leaseholders of flats to take over certain building management responsibilities from their freeholder without buying the freehold or proving that the current management has done anything wrong.Can We Take Control of Our Building Without Buying the Freehold?The Right to Manage (RTM) gives qualifying leaseholders the legal right to take over the management of their building through an RTM company. This company is responsible for managing the building once the right takes effect.RTM does not transfer ownership of the building. The freeholder still owns the freehold, but qualifying leaseholders gain control over the management functions covered by the law.You also do not need to prove that your current managing agent has performed poorly. RTM may appeal to leaseholders who want more say over repairs, service-charge spending and the way communal areas are maintained.Read LEASE's guide to how the Right to Manage works for an overview of the process and responsibilities.Does Our Building Qualify for Right to Manage?Not every property qualifies. Before taking action, leaseholders should check the main eligibility requirements. A building will generally need to meet these conditions:It contains at least two flats. The statutory right applies to qualifying blocks of flats, not individual houses.At least two-thirds of the flats have qualifying leases. These are generally long leases originally granted for more than 21 years.At least half of the flats join the RTM company. These members must be in place before the company takes over management. If the building has only two flats, both leaseholders must participate.At least half of the building's relevant floor area is residential. Non-residential areas, such as shops and offices, must not exceed 50% of the relevant floor area.Exceptions can apply, including certain buildings where the freeholder lives in a small converted property. The full legal conditions should be checked before proceeding.The rules changed in March 2025, including an increase in the permitted non-residential floor area from 25% to 50%. In most cases, leaseholders also no longer have to pay the freeholder's legal costs simply because they make an RTM claim. Other costs may still apply.Check the official Right to Manage eligibility requirements before deciding whether your building qualifies.How Do We Start RTM Without Making Costly Legal Mistakes?The process involves formal steps, and getting the notices wrong can lead to disputes or delays. Leaseholders should consider specialist legal advice before starting. The usual process involves:Discussing the proposal: Find out which leaseholders are interested and explain the responsibilities involved.Setting up an RTM company: This is the company that will take over the relevant management functions.Inviting leaseholders to participate: The required notice must be served on qualifying leaseholders who have not joined or agreed to join.Serving the claim notice: The RTM company formally notifies the landlord that it is claiming the right.Dealing with any dispute: The landlord may serve a counter-notice. If the claim is challenged, the matter may need to go to a tribunal.Preparing for handover: The company arranges management services and prepares to take responsibility on the relevant date.In August 2026, the Supreme Court clarified how certain failures in the notice-inviting-participation procedure affect an RTM claim. This does not mean notices can be ignored. Read the Supreme Court's judgment in the Cresta Court RTM case for the official decision.Will RTM Reduce Our Service Charges or Just Give Us More Responsibility?RTM can give leaseholders more control over how the building is managed and how service-charge money is handled. However, it does not guarantee lower bills. An RTM company may need to pay for:Legal advice and company setup.A professional managing agent, if one is appointed.Repairs, insurance and communal maintenance.Safety checks, contractor services and major works.Accounting, administration and other management duties.The March 2025 reforms removed the requirement to pay the freeholder's legal costs in most RTM claims, but the RTM company still needs to cover its own costs.What Happens If We Take Over but Don't Know How to Manage the Building?Taking control is only the beginning. The RTM company becomes responsible for important management tasks, and its directors need to ensure that the building is properly managed. These responsibilities can include:Preparing budgets and collecting service charges.Keeping financial records and reporting spending.Arranging repairs and maintaining communal areas.Managing contractors and planning major works.Handling relevant insurance and safety requirements.Communicating with residents and dealing with complaints.Residents may be willing to improve the building but lack the time or experience to handle these tasks themselves. Before proceeding, consider who will oversee the work and how the company will manage its legal and financial responsibilities.Can We Appoint a Managing Agent After Taking Over?Yes. An RTM company can appoint a professional managing agent to handle day-to-day work while the company retains its management role.A managing agent can help with budgets, service-charge collection, repairs, contractor coordination, major works, compliance support and communication with residents. This can make the workload more manageable for leaseholders who want control without personally handling every task.The important point is to choose an agent whose services match the building's needs and to understand which decisions remain with the RTM company's directors.How Cribs Estates Helps Manage Residential BuildingsCribs Estates provides block management services across South London, working with leaseholders, freeholders and Resident Management Companies. Its services include service-charge collection, budgeting, financial reporting, communal maintenance, major works coordination, safety checks and resident communication.If your RTM company needs professional support with the ongoing management of its building, explore Cribs Estates' block management services in South London. You can also read its guide to what block management involves.

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