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Right to Manage

Right to Manage

As a leaseholder living on a managed development, you’re legally entitled (under the Commonhold and Leasehold Reform Act 2002, to be exact) to set up a Right to Manage (RTM) Company to take over the daily running and maintenance. This generally happens only when you have serious issues that you’re unable to resolve with your existing property management company – and bear in mind that some problems may not be down to your agent, but the terms of your lease.

What is Right to Manage?

The Right to Manage is your right as leaseholder (who qualifies under a set of guidelines) to set up a Right to Manage Company in order to take over the management of your development. You can then opt to arrange for another managing agent to take over the daily running and maintenance of your development. Firstly, you would exercise your right to change management company by serving a formal notice on your existing landlord. After a set of obligatory legal procedures are completed (usually no more than about 6 months), the management of the development transfers to the Right to Manage company (the RTM company). Once this happens, you are free to appoint another management company. The cost of doing this need not be expensive.

Do you qualify?

Firstly, the Right to Manage is available to leasehold owners of apartments only.

You will also need to make sure that:

  • your development is self-contained
  • your development must include at least two apartments
  • at least two thirds of the apartments must be occupied
  • the non-residential or communal parts of the building must not exceed 25% of the total floor area
  • at least 50% of residents must be in favour of the Right to Manage process. But if possible it is always preferable to obtain a good clear majority.

If you have said yes to the above, and you still want to go ahead, then the next step is to set up a Right to Manage Company.

Why set up a Right to Manage Company at all?

Setting up a Right to Manage Company is usually only considered when you have serious issues that can’t be resolved with your existing property management company. Property management problems could include:

  • no accounts or substantially late or insufficient accounts
  • inappropriate use of contingency funds
  • failure to carry out building maintenance
  • failure to comply with legal requirements

If you have already set up a Right to Manage company and are still considering who to choose to manage your development, why not consider us?

Please contact Lucy Dorkins at ldorkins@elmgroup.org.uk or call direct on 01252 356026.

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Head Office
2nd Floor Victoria House
Aldershot
Hampshire
GU11 1EJ
T: 01252 356000
F: 01252 356001
E: customerservices@elmgroup.org.uk
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