Right to manage
Right to manage (often RTM) is a legal process that allows leaseholders in a block of flats to take over the building’s day-to-day management from the freeholder, the “landlord” of the building, by setting up an RTM company and following the statutory procedure. The key point for a freeholder is that the leaseholders do not have to prove poor management to exercise RTM. If the building qualifies and the process is followed correctly, control can transfer even where you believe you have managed well.
When RTM takes effect, the RTM company takes over many management functions that would usually sit with you or your managing agent, for example arranging maintenance of the common parts, organising contractors, and administering relevant building services. The RTM company can manage directly or appoint a managing agent of its own. You still remain the freeholder and the leases remain in place, but your practical control over building management reduces.
As a landlord (freeholder), you still have important interests to protect. The RTM process is notice-driven. You’ll receive formal notices and strict deadlines apply. If there is a dispute about entitlement or procedure, it can end up before the property tribunal (First-tier Tribunal).
RTM also matters if you are a landlord who is yourself a leaseholder letting out a rental property in the block. Your ability to deliver repairs and meet rental standards may depend on how quickly the RTM company addresses common-part issues (roof leaks, damp ingress, damp and mould, fire doors, lifts). From the commencement date 1 May 2026, the Renters’ Rights Act raises expectations around property condition and routes complaints through new redress, so delays in block management can more easily become housing disputes with your tenant, even where the underlying fault sits in the common parts.
Also see our landlord blog articles, including:
