Right to Manage: A Complete Guide
Everything you need to know about taking control of your building's management
Last updated: January 2026
What is Right to Manage?
Right to Manage (RTM) is a legal right introduced by the Commonhold and Leasehold Reform Act 2002. It allows leaseholders in England and Wales to take over the management of their building from the freeholder or their appointed managing agent.
Unlike collective enfranchisement (buying the freehold), RTM doesn't require you to purchase anything. You're simply exercising your statutory right to manage the building yourselves. Crucially, you don't need to prove any mismanagement by the current freeholder or managing agent - it's a no-fault right.
To exercise RTM, leaseholders must form a special type of company called an RTM company. This company then becomes responsible for the management functions that were previously carried out by the freeholder, including:
- Appointing and instructing managing agents
- Collecting service charges
- Arranging building insurance
- Commissioning maintenance and repairs
- Managing communal areas and facilities
- Enforcing lease covenants relating to management
The freeholder retains ownership of the freehold and certain rights (such as forfeiture and consents under the lease), but day-to-day management passes entirely to the RTM company.
Am I Eligible?
Not every building qualifies for Right to Manage. The legislation sets out specific criteria that must be met:
Self-contained building
The building must be structurally self-contained and capable of independent redevelopment without significantly affecting the rest of the development.
At least two flats
The building must contain a minimum of two flats held by qualifying tenants (leaseholders with long leases).
Two-thirds qualifying tenants
At least two-thirds of the flats in the building must be held by qualifying tenants. This means leaseholders with original lease terms of more than 21 years.
Commercial space limit
No more than 50% of the building's internal floor area can be used for non-residential purposes (increased from 25% on 3 March 2025, SI 2025/128). Buildings with majority commercial space do not qualify.
Not already under RTM
The building must not already be managed by an RTM company. Only one RTM company can manage a building at any time.
Important note
If your building is part of a larger estate with multiple blocks, each block may need to qualify separately, or you may be able to include the entire estate depending on its structure. This can be complex, and we recommend seeking professional advice.
Common Exclusions
Certain buildings cannot exercise RTM:
Resident landlord exemption
Buildings that were not purpose-built as flats (i.e., converted houses) with 4 or fewer flats, where the freeholder or an adult family member has lived in one of the flats for at least 12 months.
Local housing authority landlord
RTM is not available if any qualifying tenant's immediate landlord is a local housing authority.
The RTM Process
The RTM process follows a prescribed legal procedure. While it can seem daunting, understanding each step helps ensure a smooth transition.
Form an RTM company
Register a private company limited by guarantee with Companies House. The company must have specific articles of association that comply with RTM legislation. Any qualifying tenant can be a founding member.
Recruit participating members
You need at least 50% of the qualifying tenants in the building to be members of the RTM company before you can serve a claim notice. For example, if there are 20 qualifying flats, you need at least 10 leaseholders to join.
Serve notice of invitation to participate
Before serving the claim notice, you must give all qualifying tenants who aren't already members the opportunity to join. This notice must be served at least 14 days before the claim notice.
Serve the claim notice
The RTM company serves a formal claim notice on the freeholder (and any other relevant parties). This notice must be in a prescribed form and contain specific information about the building, the company, and the participating members.
Counter-notice period
The freeholder has one month to serve a counter-notice. They can either accept the claim or dispute it. If they dispute it, they must state their grounds. Common grounds include challenging eligibility or the validity of the claim notice.
Resolve any disputes
If the freeholder disputes the claim, the matter goes to the First-tier Tribunal (Property Chamber). The tribunal will decide whether the RTM company is entitled to acquire the right to manage. This can add significant time to the process.
RTM acquisition date
If the claim is successful (or undisputed), the RTM company acquires the right to manage on the "acquisition date". This is typically three months after the claim notice, though it can be later if there's a dispute. From this date, the RTM company is responsible for managing the building.
Timeline
In straightforward cases without disputes, the entire process typically takes 4-6 months from forming the RTM company to taking over management. If the freeholder disputes the claim, this can extend to 12 months or more.
Common Challenges
While RTM is a powerful right, exercising it successfully requires navigating several common challenges:
Getting enough leaseholder participation
The biggest hurdle is often reaching the 50% membership threshold. Some leaseholders may be absentee landlords, difficult to contact, apathetic, or concerned about taking on responsibility. Clear communication about the benefits and responsibilities is essential.
Freeholder disputes and delays
Some freeholders actively resist RTM claims, either by finding technical defects in notices or by challenging eligibility. Even meritless disputes can cause significant delays and legal costs. Having properly prepared documentation is crucial.
Understanding ongoing responsibilities
Once you acquire RTM, you're responsible for everything the freeholder used to handle. This includes compliance with health and safety regulations, insurance requirements, accounting obligations, and more. Many RTM companies underestimate the administrative burden.
Managing the transition period
The handover from the previous manager can be challenging. You'll need to obtain contracts, accounts, insurance policies, and other documents. The outgoing manager may not always be cooperative or thorough in providing information.
Finding competent contractors
Without an established relationship with contractors, you'll need to find reliable suppliers for cleaning, maintenance, repairs, and other services. This takes time and can result in service gaps during the transition.
How OpenCourtyard Helps
OpenCourtyard is designed to support self-managed buildings like RTM companies. We understand the unique challenges you face because we've lived them ourselves.
Communication tools to rally support
Building consensus among leaseholders is critical for RTM success. Our platform makes it easy to reach everyone, share information about the RTM process, and track who's on board. No more chasing people through scattered WhatsApp groups.
Document storage for RTM paperwork
RTM involves significant documentation - from the original claim notice to ongoing contracts and accounts. Our secure document storage keeps everything organised and accessible to those who need it, with a complete audit trail.
Issue tracking for ongoing management
Once you've acquired RTM, the real work begins. Our issue tracking system ensures nothing falls through the cracks. Log maintenance requests, assign responsibilities, track progress, and maintain a complete history of every issue.
Transparent record-keeping
Good governance requires transparency. Every action in OpenCourtyard is logged, every decision documented. This builds trust among residents and provides protection if disputes arise later.
Community engagement features
RTM success depends on ongoing resident engagement. Our platform includes voting tools, resident directories, and community forums that keep everyone involved and informed about their building.
Next Steps
If you're considering Right to Manage for your building, here are some recommended next steps:
- Check your eligibility - Review the criteria above and confirm your building qualifies
- Gauge interest among neighbours - Have informal conversations to understand the appetite for RTM
- Research professional support - Consider whether you need a solicitor or RTM specialist to guide the process
- Understand the costs - RTM has associated costs including company formation, legal fees, and the freeholder's reasonable costs
- Plan for post-acquisition - Think about how you'll manage the building once RTM is acquired
Further Resources
- LEASE (Leasehold Advisory Service) Free government-funded advice for leaseholders
- GOV.UK - Right to Manage Official government guidance
- Commonhold and Leasehold Reform Act 2002 The legislation itself
Ready to talk?
If you're planning an RTM claim or have already acquired RTM and need a better way to manage your building, we'd love to hear from you. OpenCourtyard is built specifically for communities like yours.
Important: This guide provides general information and is not legal advice. Laws and procedures change – always verify current rules with official sources and consider seeking professional advice for your specific situation.
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