The Complete Guide to the Right to Manage (RTM): A Step-by-Step Process for Leaseholders

For many leaseholders, escalating service charges, neglected communal maintenance and unresponsive managing agents are a daily frustration. Fortunately, UK leasehold law gives flat owners a direct and powerful remedy: the Right to Manage (RTM).

In this guide, we set out exactly what the Right to Manage process involves, how it compares to a Resident Management Company (RMC), who qualifies, realistic timelines, and the pitfalls that most often derail a claim.

1. What is the Right to Manage (RTM)?

Introduced under the Commonhold and Leasehold Reform Act 2002 and substantially reformed by the Leasehold and Freehold Reform Act 2024, the Right to Manage allows leaseholders in a block of flats to take over the landlord's management functions — without having to buy the freehold.

Importantly, RTM is a "no-fault" right in the sense that, provided the statutory eligibility criteria are met, leaseholders do not need to prove landlord mismanagement or seek court approval to exercise it. This does not mean success is automatic; the process must still be followed precisely, and a freeholder can lawfully challenge a claim on procedural or eligibility grounds.

RTM Company vs. Resident Management Company (RMC)

It is easy to confuse an RTM company with a Resident Management Company (RMC). Both give residents a degree of control over their building, but the legal foundations are quite different.

2. Qualification Criteria for Right to Manage

To bring a valid RTM claim, both the building and the leaseholder body must meet the following statutory conditions:

• Building requirements — the property must be a self-contained building, or a self-contained part of a building, capable of independent management.
• Qualifying leases — at least 75% of the flats in the block must be held on qualifying leases (originally granted for a term of more than 21 years).
• Participation threshold — at least 50% of qualifying leaseholders must join the RTM company as members.
• Commercial floor area limit — non-residential space (such as ground-floor retail or offices) must not exceed 50% of total internal floor area. This limit was raised from the previous 25% threshold by the Leasehold and Freehold Reform Act 2024, with effect from March 2025, bringing many more mixed-use buildings into scope.
• Exclusions — converted properties with four or fewer flats where the landlord is resident remain exempt.

3. A Realistic Right to Manage Timetable

Exercising the Right to Manage requires strict compliance with statutory notice periods. A typical, well-run claim looks something like this:

1. Weeks 1–4 — Build support and incorporate. Gather resident support, audit Land Registry titles, and form the RTM company (limited by guarantee).
2. Weeks 4–6 — Serve the Notice of Invitation to Participate. This must go to every non-participating qualifying leaseholder.
3. Weeks 6–10 — Serve the Claim Notice. Formal notice is served on the freeholder or landlord.
4. Weeks 10–14 — Landlord response window. The landlord has a minimum one-month statutory period to serve a counter-notice.
5. Weeks 14–22 — Handover preparation. A statutory three-month waiting period runs to the designated acquisition date.
6. Week 22 — Acquisition day. Management duties formally transfer, and your chosen managing agent takes operational control.

These timeframes assume no disputes arise. Where a freeholder contests eligibility, the claim can move to the First-tier Tribunal (Property Chamber), which will add further time.

4. Common RTM Pitfalls to Avoid

Freeholders frequently defeat RTM claims on procedural technicalities rather than genuine eligibility grounds. Watch out for:

• Skipping the Notice of Invitation to Participate. Failing to serve this notice under section 78 on every non-participating qualifying leaseholder is the single most common error used to defeat claims.
• Miscalculating qualifying flats. Always check short leases, head leases and commercial floor areas against the Land Registry title, not assumptions.
• Assuming old cost rules still apply. While landlord claim-notice costs are generally no longer recoverable from the RTM company, you must still budget for your own professional setup costs.
• No day-one operational plan. Repairs, safety checks and insurance obligations continue without pause on acquisition day. Appoint your managing agent and arrange block insurance before serving the Claim Notice, not after.

5. Recent Leasehold Reform: What's Changed

The Leasehold and Freehold Reform Act 2024 has meaningfully lowered the barriers to RTM for flat owners:

• 50% commercial space threshold — raised from 25%, bringing thousands of mixed-use and high-street developments into scope (in force since March 2025).
• Removal of landlord cost recovery — under new sections 87A and 87B, freeholders can generally no longer pass their non-litigation legal costs on to leaseholders to frustrate or penalise an RTM claim (in force since March 2025).
• First-tier Tribunal jurisdiction — the FTT (Property Chamber) continues to provide an accessible route to resolve disputes where an uncooperative freeholder raises technical objections.

Further reforms — including changes to marriage value and enfranchisement valuation — have been announced but are not yet in force. We keep this guide updated as the law develops; if you're planning a claim, it's worth checking with us for the latest position before you serve notice.

6. Life After Acquisition: Directors' Responsibilities

Once RTM is secured, the company assumes full legal, financial and regulatory responsibility for block management. Directors must ensure statutory fire risk assessments, health and safety compliance, Section 20 major works consultations, and service charge accounting are all managed properly — the obligations don't pause for a learning curve.

This is where most self-managed RTM companies benefit from an experienced managing agent: someone who already knows the compliance calendar, has trade contacts in place, and can be operational from day one rather than day ninety.

Frequently Asked Questions

Can the freeholder refuse an RTM claim? A freeholder cannot refuse RTM on the basis of preference alone. They can, however, serve a counter-notice disputing eligibility, which may lead to a First-tier Tribunal hearing.

What happens to existing staff and contractors on acquisition day? Existing contracts (cleaning, gardening, insurance, etc.) generally continue unless and until the RTM company decides to change them. It's sensible to review all contracts in the run-up to acquisition day, not after.

Do we need a solicitor to claim RTM? It isn't a strict legal requirement, but given the strict notice periods and the technical grounds on which claims are commonly challenged, most leaseholder groups find specialist support pays for itself many times over.

How long does the whole process take? A straightforward, uncontested claim typically takes around 22 weeks from initial notice to acquisition, though complex titles or a disputed counter-notice can extend this considerably.

Take Control of Your Block Management

If you are frustrated with how your block is managed, forming a Right to Manage company puts you back in direct control of your building and your service charges — provided your block meets the statutory criteria above.

At Property Hub, we guide leaseholders through every stage of the RTM process and specialist block managment services .

Are you looking for a block management specialist?

• 📞 Speak to Elina Smith, our block mangagment specialist at 0208 903 1002 or just email at blockm

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This guide reflects the law as at August 2026. This article is provided for general information only and does not constitute legal advice. Every building's circumstances differ — please seek independent legal advice before serving any statutory notice.