Real Estate and Litigation Solicitors – Naylor Solicitors LLP

What is Right to Manage?

Public concern about extortionate service charges and poorly managed buildings led to the Right to Manage (RTM) process under the Commonhold and Leasehold Reform Act 2002.

This gives leaseholders the opportunity to take control over their building by forcing a transfer of the landlord’s management functions to a Right To Manage (RTM) company.

Unlike previous landlord and tenant legislation, leaseholders can change management without having to prove any fault on the part of the landlord.

The Right to Manage company has to be limited by guarantee and must include articles of association, a prescribed memorandum and the acronym RTM in the title.

The benefits of exercising your right to manage include setting service charges, appointing your own managing agent and cutting the hassle of getting consent for things in the lease.

There are also several responsibilities to running a right to manage company: