What Is the Right to Manage (RTM)? A Complete Guide for Leaseholders in 2026

If you've ever felt frustrated by rising service charges, poor communication from your managing agent, or delays in essential repairs, you're certainly not alone. Thousands of leaseholders across the UK experience similar issues every year.

Fortunately, leaseholders have a legal right that allows them to take greater control over how their building is managed without having to buy the freehold. This right is known as the Right to Manage (RTM).

At My Estate Luton, we regularly assist leaseholders through the RTM process and provide professional block management services once the RTM has been successfully established. In this guide, we'll explain exactly what RTM is, how it works, who qualifies, and the steps involved in taking over the management of your building.

What Is the Right to Manage?

The Right to Manage is a legal right introduced by the Commonhold and Leasehold Reform Act 2002.

It allows qualifying leaseholders to take over the management responsibilities of their building from the landlord or current managing agent without having to prove that the existing management is poor.

Unlike many legal claims, you do not need to demonstrate negligence or unreasonable service charges. If the qualifying criteria are met and the legal process is followed correctly, leaseholders have the right to assume responsibility for managing their building.

What Does RTM Allow You to Control?

Once the Right to Manage has been successfully acquired, the RTM Company becomes responsible for managing the building on behalf of the leaseholders.

This typically includes:

• Collecting service charges
• Preparing annual budgets
• Arranging buildings insurance (where permitted)
• Organising repairs and maintenance
• Appointing contractors
• Managing health and safety obligations
• Fire safety compliance
• Lift maintenance
• Emergency lighting
• Fire alarm servicing
• Cleaning contracts
• Gardening contracts
• Window cleaning
• Roof inspections
• Tree maintenance
• Financial reporting
• Leaseholder communication

Although management responsibilities transfer to the RTM Company, the freeholder continues to own the building.

Who Can Apply for RTM?

Not every building qualifies.

Generally, a building will qualify if:

• It contains at least two flats.
• At least two-thirds of the flats are held on long leases (usually more than 21 years).
• No more than 25% of the building is used for commercial purposes.
• At least 50% of the qualifying leaseholders agree to participate in the RTM claim.

These are the core statutory requirements, although each case should be assessed individually.

How Does the RTM Process Work?

Many leaseholders believe they simply vote to replace the managing agent. In reality, there is a formal legal process that must be followed.

Step 1 – Check Eligibility

Confirm that both the building and the leaseholders qualify.

Step 2 – Form an RTM Company

An RTM Company must be incorporated specifically for the building.

This company will eventually become responsible for managing the block.

Step 3 – Invite All Qualifying Leaseholders

Before making a claim, all qualifying leaseholders must be invited to join the RTM Company.

This is a legal requirement.

Step 4 – Serve the Claim Notice

A formal Claim Notice is served on the freeholder.

This starts the legal process.

Step 5 – Counter Notice

The freeholder normally has one month to respond.

They may:

• Accept the claim.
• Challenge eligibility.
• Dispute technical issues.

Step 6 – Acquisition Date

If the claim is successful, management transfers to the RTM Company on the agreed acquisition date.

What Happens After RTM Is Granted?

This is often where many leaseholders underestimate the work involved.

Taking over management also means taking on legal responsibilities.

The RTM Company becomes responsible for ensuring that the building is properly managed.

This may include:

• Annual accounts
• Service charge budgeting
• Contractor appointments
• Fire Risk Assessments
• Health and Safety compliance
• Building insurance
• Maintenance schedules
• Reserve funds
• Resident communication
• Company administration

Many RTM Companies therefore appoint a professional managing agent to carry out the day-to-day work while retaining control over key decisions.

Common Mistakes RTM Companies Make

Some of the most common issues include:

• Failing to budget correctly
• Not carrying out regular inspections
• Poor record keeping
• Inadequate contractor management
• Non-compliant Fire Risk Assessments
• Lack of reserve funds
• Failure to comply with company law
• Poor communication with leaseholders

Good management requires knowledge, organisation and a proactive approach.

The Benefits of RTM

A well-managed RTM Company can provide significant benefits, including:

• Greater control over service charge expenditure
• Improved contractor oversight
• Better communication
• Faster maintenance decisions
• Increased transparency
• Greater accountability
• Better long-term planning
• Improved property values
• Happier leaseholders

Does RTM Mean Self-Managing the Building?

Not necessarily.

Many leaseholders prefer to appoint a professional block management company after obtaining RTM.

This allows the RTM Directors to retain strategic control while experienced professionals handle the operational management.

This approach often provides the best balance between control and professional expertise.

How My Estate Can Help

At My Estate Luton, we work closely with RTM Companies across a range of developments.

Our services include:

• Full Block Management
• Service Charge Administration
• Financial Reporting
• Contractor Management
• Fire Safety Compliance
• Health & Safety Compliance
• Regular Property Inspections
• Planned Preventative Maintenance
• Budget Preparation
• Resident Communication
• Major Works Coordination
• Section 20 Consultation Support

We believe successful block management is built on transparency, communication and proactive maintenance—not simply reacting when problems arise.

Final Thoughts

The Right to Manage gives leaseholders an excellent opportunity to take control of how their building is managed. However, with that control comes responsibility.

The legal process must be followed carefully, and once management transfers, the ongoing obligations can be significant.

Whether you're considering RTM for the first time or your RTM Company is looking for a professional managing agent, obtaining the right advice from the outset can save both time and money.

At My Estate Luton, we're passionate about helping leaseholders protect their investments, improve the standard of management and ensure their buildings remain fully compliant with current legislation.

If you'd like to discuss how RTM could work for your building, or you're looking for a proactive managing agent, we'd be delighted to hear from you.

MyEstate Luton Limited
Local Expertise. Professional Management. Better Results.