Right to manage: How leaseholders can take control

When service charges keep rising, repairs are repeatedly delayed or nobody seems able to explain how decisions are made, taking control of the building can feel like the obvious answer. The Right to Manage gives qualifying flat owners a legal route to do exactly that.

It is a powerful right because leaseholders do not have to buy the freehold, obtain the landlord’s agreement or prove that the building has been badly managed. However, it is not simply a mechanism for dismissing an unpopular managing agent. The leaseholders take on real legal, financial and practical responsibilities through a Right to Manage company.

I have seen how quickly dissatisfaction with management can unite a building. I have also seen enthusiasm cool when the conversation turns to unpaid service charges, fire safety, major works and who will give up their time to serve as a director. Before beginning a claim, it is worth understanding both sides of the bargain.

Quick answer: What is the Right to Manage?

The Right to Manage, usually shortened to RTM, allows qualifying long leaseholders of flats to take over specified management functions from their landlord. They do this collectively through a specially constituted RTM company under the Commonhold and Leasehold Reform Act 2002.

The building must satisfy statutory conditions and the RTM company must have members representing at least half of all the flats in the building. If there are only two flats, both must participate. No premium is payable for the management right and no evidence of fault is required, but the prescribed notices and deadlines must be followed carefully.

Contents

• How does the Right to Manage work?
• Does our building qualify?
• What is an RTM company?
• The Right to Manage process
• What does the RTM company control?
• What responsibilities does it take on?
• How much does Right to Manage cost?
• How long does it take?
• What if the landlord disputes the claim?
• Can you claim if the landlord is missing?
• Right to Manage or another remedy?
• Questions to ask before proceeding
• Frequently asked questions

How does the Right to Manage work?

The freeholder continues to own the building. The leases continue, ground rent remains payable where the lease validly requires it, and the RTM company does not acquire the freeholder’s investment interest. What transfers are management functions relating to the premises.

In practice, the RTM company usually becomes responsible for matters such as repairs, maintenance, services, insurance, service-charge budgeting and collection, and managing approvals required under the leases. It can employ a professional managing agent, retain the existing agent or, in a suitable building, manage matters itself.

Importantly, RTM is a no-fault right. A well-performing landlord cannot defeat a valid claim simply by saying that the building is already properly managed. Equally, taking control does not by itself establish that previous service charges were unreasonable or recover money already paid. Those are separate questions. My guide to leasehold service charges explains how charges may be challenged.

Does our building qualify for the Right to Manage?

The detailed eligibility rules can become technical, particularly on mixed-use developments, estates with several blocks and buildings divided into structurally distinct parts. Broadly, the premises must be a self-contained building, or a self-contained part of a building, containing at least two flats.

At least two-thirds of the flats must be held by qualifying tenants. In this context, that generally means leases originally granted for more than 21 years. It is the original term that matters, not how many years remain. Leaseholders do not have to occupy their flats, so buy-to-let owners can participate, and shared ownership leaseholders can also qualify.

The commercial or other non-residential floor area must not exceed 50% of the building’s total internal floor area, excluding common parts. This increased from 25% on 3 March 2025, bringing many more buildings containing shops or offices within the scheme.

The RTM company’s members must represent at least half of all the flats in the premises. This is sometimes misunderstood as half of the qualifying flats. It is half of the total number of flats. If one person owns several flats, each flat may count towards the participation requirement, subject to the statutory rules.

Certain buildings are excluded. One important exception can apply to a converted building containing no more than four flats where the resident landlord, or an adult member of the landlord’s family, occupies a qualifying flat as their only or principal home and has done so for the required period. Local-authority-owned buildings are also outside the ordinary RTM scheme.

On an estate of detached blocks, it may be necessary for each qualifying block to make a separate claim. Arguments over whether part of a building is structurally detached have generated considerable litigation, so this is not a point to guess from the postal address or service-charge schedule.

What is an RTM company?

The claim must be made by a private company limited by guarantee whose constitution follows the prescribed RTM model. Individual leaseholders cannot acquire the right in their own names, and an ordinary residents’ management company is not automatically an RTM company.

All qualifying leaseholders must be given the opportunity to become members, even if they did not support the idea initially. Once the right has been acquired, the landlord is also entitled to membership and voting rights calculated under the statutory rules. The company continues when individual flats are sold, and an incoming qualifying leaseholder is entitled to become a member.

A company can sound reassuringly formal, but it still needs people to run it. Directors must comply with company law, file the necessary records, make defensible decisions and manage conflicts of interest. The RTM company also needs a realistic management plan before the acquisition date arrives.

The Right to Manage process step by step

1. Check the building and build support

Before spending money, check the leases, titles, floor areas, number of qualifying flats and any resident-landlord exemption. Speak candidly with the other leaseholders about why they want RTM and what they expect it to achieve. A bare statutory majority may be enough to make the claim, but broader support usually makes the company easier to run.

2. Incorporate the RTM company

The company must be registered using the correct form of articles and name. Initial directors are appointed and qualifying leaseholders who already support the claim become members.

3. Serve notices inviting participation

The company must formally invite every qualifying tenant who is not already a member to participate. The notice has prescribed content and must explain the proposed claim, the company and the recipient’s right to join.

4. Investigate the building

The RTM company may serve a statutory information notice where information is reasonably required to establish whether it can claim the right. It also has a limited right of access, on notice, to inspect parts of the building where reasonably necessary for the claim.

5. Serve the claim notice

At least 14 days after the invitations to participate have been given, the RTM company may serve its notice of claim on the landlord and the other prescribed parties. A copy must also be given to each qualifying tenant. The notice identifies the premises, states the proposed acquisition date and fixes the deadline for any counter-notice.

6. Deal with the counter-notice

The landlord must be allowed at least one month to respond. A counter-notice either admits the company’s entitlement or gives reasons for disputing it. The landlord cannot defeat the claim merely because they dislike it, doubt the directors’ experience or wish to keep their managing agent.

7. Prepare for handover

Do not wait until the claim succeeds to think about insurance, contracts, bank accounts, service-charge demands and emergency repairs. The company may need information from the landlord and should decide whether to appoint a managing agent. Existing contractors should be identified, but the effect of RTM on individual contracts needs checking rather than assuming that every arrangement automatically transfers.

8. Take over on the acquisition date

If the claim is admitted or successfully determined, the RTM company acquires the management functions on the stated date. That date must be at least three months after the counter-notice deadline. The landlord must account for accrued service-charge money that is uncommitted on the acquisition date, although disputes over the sum can be referred to the appropriate tribunal.

The Leasehold Advisory Service’s step-by-step RTM guidance provides further detail on the notices and handover.

What does the RTM company control?

The precise functions depend on the leases and the legislation, but the company will commonly arrange buildings insurance, repair and maintain common parts, procure services, prepare budgets, demand service charges, administer reserve funds and consult leaseholders about qualifying major works or long-term agreements. Taking control of the insurance can give leaseholders greater oversight of procurement, cover and cost; my guide to leasehold buildings insurance and challenging excessive premiums or commission explains the issues to consider.

It will also generally deal with approvals under the lease, such as applications relating to alterations, subletting or assignments. However, the RTM company must notify the landlord of certain approval applications, and the landlord may object in accordance with the statutory procedure.

A request to keep a pet may be another such approval, depending on the wording of the lease. My separate guide explains how pet restrictions and consent work in leasehold flats, including why Right to Manage does not remove the underlying covenant.

The freeholder usually retains responsibility for collecting ground rent and dealing with matters outside the transferred management functions. Enforcement of lease breaches is particularly nuanced. The RTM company must report certain unremedied breaches to the landlord, while forfeiture remains a remedy for the landlord rather than the RTM company.

What responsibilities does the RTM company take on?

RTM replaces one decision-maker with another; it does not make the roof watertight, the lift reliable or major works affordable overnight. The company must follow the leases and the statutory service-charge regime in much the same way as the landlord had to do.

That includes issuing legally compliant demands, holding service-charge funds properly, consulting under section 20 where required, keeping accounts, arranging appropriate insurance, planning maintenance, addressing fire and building safety duties and pursuing arrears. My broader leasehold property guide explains the framework within which those responsibilities sit.

The difficult part is often human rather than legal. One owner may want the cheapest possible budget, another may want the hallway transformed, and a third may not answer messages or pay on time. A sensible decision-making process, proper minutes and a clear division between directors and the managing agent can prevent ordinary differences of opinion becoming personal disputes.

Professional management does not mean surrendering control. The agent works for the RTM company, and the directors remain responsible for supervising the appointment. Before choosing an agent, compare the services included, fee structure, complaints process, professional membership, client-money protection and experience of similar buildings.

How much does Right to Manage cost?

There is no purchase price or premium to pay for RTM. The company will have its own incorporation, legal and possibly surveying or management-planning costs. Those costs vary with the size and complexity of the building and whether the claim is disputed, so a confident fixed “average cost” can be misleading.

For claims made under the rules in force since 3 March 2025, the RTM company and its members are not generally liable for the landlord’s ordinary costs of dealing with the claim. This was an important change from the previous position. Limited exceptions remain, including potential liability where a tribunal determines that the RTM company was not entitled to acquire the right, and the company may have to meet reasonable costs connected with a separate request for management information.

Participants should agree at the outset how the company’s costs will be shared and what happens if somebody withdraws. The company also needs enough working capital for the transition. Service-charge funds belonging to the building should not simply be treated as available to meet every cost of making the claim.

How long does the Right to Manage process take?

An uncontested claim usually takes several months. The statutory timetable alone requires time between the invitation notices and claim notice, at least a month for the counter-notice, and at least three further months before the acquisition date.

Preparation may add significantly to that period, especially where titles must be checked, commercial floor area measured or support built among absentee owners. A disputed claim will take longer because of the tribunal process. RTM is therefore not an emergency remedy for a dangerous defect or an urgent insurance problem.

What if the landlord disputes the claim?

A landlord may dispute whether the premises qualify, whether the company is properly constituted, whether enough flats are represented or whether the statutory procedure has been followed. If a counter-notice denies entitlement, the RTM company must normally apply to the appropriate tribunal within two months of the counter-notice date. Missing that deadline causes the claim notice to be treated as withdrawn.

In England, the dispute is usually determined by the First-tier Tribunal (Property Chamber). Wales has its own residential property tribunal arrangements. The question is whether the statutory conditions were satisfied, not whether the tribunal thinks the existing or proposed management is better.

Minor defects in a claim notice do not invariably invalidate it, but that is not a reason to be casual. Some errors are fatal, and starting again can mean delay and duplicated expense. Eligibility and service should be checked before the notices go out.

Can you claim the Right to Manage if the landlord is missing?

Yes, potentially. If a person who should receive the claim notice cannot be found, the RTM company may apply to the tribunal for an order allowing it to acquire the right. It will need to show that reasonable efforts have been made to identify or trace the missing party and must first notify the qualifying leaseholders of the proposed application.

A missing freeholder can create wider problems with insurance, consents, lease extensions and the sale of flats. My guide to dealing with an absent landlord considers those issues in more detail.

Right to Manage or another leasehold remedy?

RTM is attractive where leaseholders want collective control without paying to buy the freehold. It is often quicker and less expensive than collective enfranchisement, but it gives management control rather than ownership. Buying the freehold may offer wider long-term control and the opportunity to grant new leases, although it requires a purchase price and a valuation process. My collective enfranchisement guide explains that route.

If serious management failings exist but there is not enough support or appetite to run an RTM company, leaseholders may ask the tribunal to appoint an independent manager under section 24 of the Landlord and Tenant Act 1987. That remedy requires statutory grounds and ordinarily a preliminary notice, whereas RTM does not require fault. See my guide to the appointment of a manager.

If the immediate dispute concerns one service-charge demand, challenging that charge may be more proportionate than changing the whole management structure. Equally, if the immediate problem is a repair that the freeholder or managing agent is failing to carry out, see what leaseholders can do when repairs are being ignored. A recognised tenants’ association can also give leaseholders useful information and consultation rights without transferring management.

Questions to ask before proceeding

The legal threshold is only the beginning. Before serving notices, the participating leaseholders should be able to answer some practical questions:

• What exactly do we want to improve, and is RTM capable of achieving it?
• Who is prepared to become a director and remain involved after the initial campaign?
• Will we self-manage or appoint a suitably experienced managing agent?
• What major works, safety issues, arrears and existing contracts will the company inherit?
• How will disagreements, conflicts of interest and urgent decisions be handled?

I would be wary of a plan built entirely around reducing the service charge. Better procurement and closer scrutiny may save money, but neglected maintenance eventually becomes expensive maintenance. A credible RTM plan should be about value, transparency and the long-term condition of the building—not simply the smallest possible annual budget.

Frequently asked questions

Control is valuable, but preparation matters

The strongest feature of Right to Manage is that leaseholders do not have to wait for management to become intolerable before acting. If the legal conditions are met, they can choose collective control because they believe it will produce a better-run building.

That freedom comes with responsibility. A successful claim should end with more than a new company name on the service-charge demand. It should begin a properly planned handover, with competent directors, realistic budgets, sound professional support where needed and a willingness to make decisions for the building as a whole.

Last legally reviewed: 23 August 2026

This guide is based on general principles of English and Welsh law, is intended for informational purposes only, and does not constitute legal advice or establish a professional relationship.

About the author, Clare Lowes