What Is Right to Manage (RTM)?
Right to Manage (RTM) is a legal right that allows leaseholders in England and Wales to take over the management of their building — without having to prove negligence or buy the freehold.
It means you and your neighbours can choose who runs your block, how your money is spent, and how your home is maintained.
How RTM Works
RTM was created under the Commonhold and Leasehold Reform Act 2002.
It gives leaseholders the power to replace their existing managing agent and appoint one of their choosing, or manage the building themselves.
You don’t have to:
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Prove mismanagement
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Pay compensation
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Buy the freehold
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Get the freeholder’s consent
You simply need to meet the eligibility criteria and follow the statutory process.
Why Residents Use RTM
Common reasons leaseholders choose RTM:
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Rising service charges
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Poor building maintenance
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Repairs taking too long
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Lack of transparency
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No local accountability
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Desire for greener, more sustainable options
RTM gives control back to the people who actually live in the building — not remote companies.
✔️ RTM Includes
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Choosing a managing agent
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Setting service charges
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Handling building maintenance
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Managing repairs
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Supplier selection
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Insurance arrangements (in most cases)
✘ RTM Does Not Include
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Ownership of the land or building
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Changing lease terms
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Taking over commercial units
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Managing individual flats
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Collecting ground rent
RTM Eligibility
Your building is likely eligible if:
✅ At least 50% of leaseholders participate
✅ At least 2 flats in the building
✅ At least 2/3 of the flats are leasehold (over 21 years originally)
✅ The building is self-contained
Ineligible examples include:
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Buildings with too much commercial space
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Mixed estates where blocks cannot be separated
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Very small conversions where the freeholder lives onsite
How Long Does RTM Take?
The RTM process typically takes:
3–9 months, depending on:
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Number of leaseholders
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Building complexity
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Freeholder response
Delays can occur, but the legal timelines are clear and well-defined.
RTM Cost Overview
The RTM process is not free, but often significantly cheaper than enfranchisement (buying the freehold).
Typical costs include:
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Legal + process fees
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Notice serving
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Company formation
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Potential freeholder costs (reasonably incurred)
These are often shared among participating leaseholders.
Once RTM is successful, ongoing costs depend on:
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Managing agent chosen
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Maintenance needs
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Insurance
Do We Have To Self-Manage?
No.
Most RTM companies hire a managing agent to run the day-to-day operations.
You simply:
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Choose the agent
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Hold them accountable
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Set priorities
You can be as hands-on or hands-off as you want.
FAQ
Do we need permission from the freeholder?
No
Do we need to prove mismanagement?
No
Can the freeholder refuse?
They can challenge eligibility, but not arbitrarily block RTM.
Do we have to run everything ourselves?
No. Most appoint a managing agent.
Does RTM cover shops/commercial units?
Not directly — but mixed-use can still be eligible depending on proportions.