To qualify for Right to Manage ( RTM ): the building must be made up of flats (houses do not qualify) at least two-thirds of the flats in the building must be leasehold - with leases that were for more than 21 years when they were granted at least 50% of the building must be residential - for example, if there鈥檚 a shop in the building, it cannot take up more than 50% of the total floor area any number of owners can set up an RTM company - but at least half of the flats in the building must be members of the company before it can actually take over management If you or an adult family member lives in the building If you or an adult family member have lived in one of the flats as your only or main home for the past 12 months, the building might not qualify for RTM . An adult family member includes your spouse, civil partner, children, step-children or parents. In this case, the leaseholders will not be able to take over the management of the building if: it鈥檚 not purpose-built (for example, it鈥檚 a converted house) it contains no more than 4 flats in total

Normally, the leaseholders will contact you once they鈥檝e set up the Right to Manage ( RTM ) company. You may get a 鈥榬ight to information鈥� notice from the RTM company - asking for the information they need in order to claim their Right to Manage. You receive a 鈥榥otice of claim鈥� If you receive a 鈥榥otice of claim鈥� it means that the RTM company intends to take over management of the building. It will tell you: the date you must respond by the date the RTM company intends to take over management of the building You can: accept the claim dispute the claim - the notice of claim will tell you when you need to do this by, but the deadline cannot be less than 1 month from the date of the notice

You can dispute the claim by serving a counter-notice to the Right to Manage ( RTM ) company. In the notice, you must explain why you think the company is not entitled to take over management of the building. You can dispute the claim if you think: the building does not qualify the RTM company does not comply with the legal requirements the RTM company members do not represent half the flats in the building You cannot dispute the claim for any other reason. What happens if the RTM company disagrees If the members of the RTM company think you鈥檙e wrong, the company must apply to the First-tier Tribunal (Property Chamber) within 2 months of the date of the counter-notice. The tribunal will then decide if the RTM company can manage the building.

Transferring management of the building

If you accept the Right to Manage ( RTM ) company鈥檚 notice , or if you dispute the claim and the First-tier Tribunal (Property Chamber) decides against you, the management of the building will transfer to the RTM company. The date the RTM company takes over management responsibilities is called the 鈥榙ate of acquisition鈥�. This will be: on the date given on the notice of claim - if you accept the claim 3 months after the First-tier Tribunal (Property Chamber) decision becomes final - if you disputed the claim and lost 3 months after agreement - if you originally disputed the claim but later came to an agreement with the RTM company You must transfer any money you have from service charges on the acquisition date - or as soon after as is reasonably possible. Ongoing management The RTM company must tell you at least 30 days before approving: an assignment (selling or transferring a flat into someone else鈥檚 name) a sublet a charge to leaseholders If the lease says your consent is needed, the RTM company must give you 30 days鈥� notice before approving: any changes to the structure of the building any changes to the use of the building For other approvals they must tell you at least 14 days in advance. Read the Leasehold Advisory Service鈥檚 guide on The Right to Manage for a detailed explanation of how Right to Manage works.

Right to Manage: a guide for landlords: The Right to Manage

Right to Manage: a guide for landlords

The Right to Manage

The Right to Manage (RTM) lets some leasehold property owners take over management of the building - even without the agreement of the landlord.

As a landlord, the leaseholders in your building will send you notice if they plan to do this. If they鈥檙e successful, you鈥檒l still own the building but they鈥檒l manage it.

This means they鈥檒l be responsible for things like:

collecting and managing the service charge
upkeep of communal areas (such as communal hallways and stairs)
upkeep of the structure of the building (such as the roof)
dealing with complaints about the building from other leaseholders

Qualifying leaseholders can use the Right to Manage for any reason - they do not have to prove the building has been badly managed.

Right to Manage companies

To use the right, leaseholders must set up an RTM company and follow certain procedures. The RTM company can manage the building directly, or pay a managing agent to do it.

As a landlord, you have the right to be a member of the鈥�RTM鈥痗ompany and to vote on its decisions. You get at least 1 vote. How many votes you get depends on how many flats or non-residential units you own in the building. A non-residential unit could be a shop, an office or any space you own that is not a flat or shared area.

Your total votes are limited to one-third of the votes held by all leaseholders. This includes any votes you have for non-residential units you own in the building.

Example 1

There are 20 flats in the block. 16 are owned by leaseholders. 4 are owned by you (the landlord) and rented out on assured shorthold tenancies. You get 4 votes - 1 for each of the flats you own and rent out.

Example 2

There are 13 flats in the block. 9 are owned by leaseholders. 4 are owned by you (the landlord). The leaseholders get 9 votes. Your votes are limited to one-third of the leaseholders鈥� votes, so you get 3 votes.聽

You must pay your own costs throughout the management transfer process.

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Right to Manage: a guide for landlords

The Right to Manage

Right to Manage companies

Example 1

Example 2

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Right to Manage: a guide for landlords

The Right to Manage

Right to Manage companies

Example 1

Example 2

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