Reasons to consider Right to Manage

Tenants in leasehold developments often believe the managing agents are acting on their behalf when in reality they are acting on behalf of, and report to, the landlord.

Frequently, landlords have different objectives to tenants when managing buildings. Of course, there will be issues where the landlord and the tenants are at one but this will not always be the case. Consequently, tenants can feel that they have no or little control over the building in which their flat is situated. This, combined with poor management or indifference can adversely affect the enjoyment and value of what is frequently the most significant asset that most people will own.

However before considering the reasons in favour of the RTM, the tenants and their advisors should have some very honest discussions or exchanges about what it means in terms of time, skills, expertise and money.

Tenants often believe that they will be able to do a better job, but then cold harsh reality sets in. Directing the management of even a small block of flats is very time-consuming and demanding. It requires great organisational and communication skills. A number of RTM companies fail. Whether the RTM is a success (and more importantly remains so) depends on the type and nature of people that live in the block and these people will change over the years; people have a tendency to move or sell properties. So, even if you start off with a set of people that have all the requisite skills and time, they may move on.

However, on the assumption that the tenants do want to assume more control, the RTM procedure under the CLRA 2002 does have a lot to recommend to it.

 

Written by James Naylor

Partner, Naylor Solicitors LLP.

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