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Right to Manage

RTM transfers management. It does not transfer the freehold.

The route is procedural: qualify the building, form the prescribed company, invite participation, serve the claim correctly and prepare to manage from the acquisition date.

Original Building Trust visual for RTM transfers management. It does not transfer the freehold.
Qualification and notices lead to a handover, then the continuing work of management begins.

Current eligibility

Check the building, leases and members before forming the claim.

Building

A self-contained building or qualifying part

Structure, vertical division and shared services can make the boundary difficult. Use plans and professional input where the building is not straightforward.

Residential

At least half the floor space must be residential

Current LEASE guidance reflects the live 50% residential threshold. Exclude common areas when applying the test.

Leases

Count flats held by qualifying tenants

At least two flats and the required proportion of long leases are needed. Check the original term and current interests rather than using the occupier list.

Members

Recruit the required RTM company membership

The company, membership applications and register need to be correct before the claim notice. Invite every qualifying tenant through the prescribed route.

Exceptions

Check resident-landlord and other exclusions

Small converted buildings and other situations can fall outside the right. Apply the detailed test rather than a one-line calculator result.

The claim sequence

Each document creates the next deadline.

01

Form the prescribed RTM company

Use the correct company form and model articles, then establish the company records and controlled filing access.

02

Serve the notice inviting participation

Give qualifying tenants the prescribed information and route to membership before moving to the claim.

03

Prepare and serve the claim notice

Identify the premises, company, members, recipients and proposed acquisition date using the current prescribed form and service rules.

04

Track the counter-notice and determination route

Record whether the claim is admitted or disputed and use the current tribunal form and deadline if a determination is required.

05

Prepare the acquisition date

Use the notice period to establish insurance, contractors, banking, data, reporting, resident communication and decision authority.

After acquisition

The freeholder remains. Management roles change.

Functions

Map which management functions transfer

Use the leases and RTM legislation for services, repairs, insurance, approvals and other functions. Do not assume every landlord right moves.

Money

Reconcile service-charge funds and commitments

Identify balances, arrears, invoices, reserves, contracts and the trust or lease basis on which each sum is held.

Insurance

Avoid a gap or duplicate placement

Confirm who arranges cover, the insured parties, policy dates, disclosure and any lender or lease requirements before the acquisition date.

Consents

Set the lease-application route

Clarify which approvals the RTM company handles, which interests remain with the landlord and how each decision is recorded.

Agent

Appoint or instruct with visible authority

Define services, delegated limits, reserved board decisions, reporting, data access and handover in the signed appointment.

Company

Run the RTM company as a company

Keep members, directors, minutes, filings, conflicts and communications current after the claim completes.

Sources for this page

Open the law and guidance yourself.

Independent guidanceLEASE: about the Right to Manage

Current guidance on the right, building criteria, residential threshold and resident-landlord exception.

Independent guidanceNotice inviting participation

The current participation notice, information, timing and membership route.

Independent guidanceNotice of claim

The prescribed claim route, current timing and acquisition-date framework.

Primary lawCommonhold and Leasehold Reform Act 2002

Part 2, Chapter 1 contains the statutory Right to Manage framework.

Links and current-law position checked 18 August 2026. Apply the governing documents, building facts and current law to the case in front of you.