How Much Could You Save with RTM? Real Examples of Leaseholders Cutting Costs
- Jon Buckley
- Nov 12
- 1 min read
Service charges creeping up every year? You’re not imagining it. Many leaseholders pay 20–40% more than they should for maintenance, insurance, and cleaning — often because freeholders or managing agents don’t competitively tender contracts.
But with the Right to Manage (RTM), residents can take control and save thousands. Here’s how.
Where the Savings Come From
When you take over management through RTM, you can:
Choose your own contractors instead of the freeholder’s preferred firms.
Review insurance policies (often a major source of overcharging).
Tender maintenance contracts competitively.
Cut out management fees that don’t deliver value.
Even modest changes make a big impact across a block.
Real-World Examples
Example 1: 24-Flat Block, Birmingham
Before RTM: £80,000 annual service charge.
After RTM: £64,000 — a 20% saving.
Savings came from cheaper insurance and renegotiated cleaning contracts.
Example 2: Mixed Estate, Manchester
Residents reduced costs by £6,500 per year by switching managing agents and cutting unnecessary maintenance.
Example 3: 12-Flat Converted House, London
After forming an RTM company, residents saved £400 per flat per year by directly managing minor repairs and maintenance.
Beyond the Money: Quality and Transparency
The benefits aren’t just financial.
Faster repairs (because residents decide priorities).
Clear budgets — every line of spend is visible.
More community spirit, as residents collaborate.
Thinking About Making the Change?
RTM doesn’t have to be complicated.
Even if you’re not eligible yet, we can point you to trusted RTM solicitors and management specialists to explore your options.
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