What is the Right to Manage? A plain English guide for leaseholders

What is the Right to Manage and why do so many leaseholders mention it when managing agents fall short? In plain English, Right to Manage, often called RTM, is a legal route that lets qualifying leaseholders take control of how their building is run. You still have your lease, and the freeholder still owns the building, but key management decisions move to an RTM company owned by leaseholders.

RTM exists because the way a building is managed affects your quality of life and the value of your investment. If repairs are slow, service charge spending feels unclear, or communication is poor, RTM can be a way to change the management setup without buying the freehold.

What is the Right to Manage, in plain English

Right to Manage is mainly about management, not ownership. When you exercise RTM, an RTM company becomes the legal entity that carries out landlord management functions for the building. That typically includes arranging buildings insurance, maintaining and repairing common parts, and putting service contracts in place.

In many cases, the RTM company can still hire a managing agent to handle day to day work. The difference is that the leaseholders own and control the company making the decisions, rather than the freeholder or an agent acting on the freeholder's behalf.

The legal basis in the Commonhold and Leasehold Reform Act 2002

The Right to Manage is created by the Commonhold and Leasehold Reform Act 2002. Because it is a statutory right, it does not depend on a goodwill agreement with the freeholder. If the qualifying conditions are met, the process is governed by the Act and related regulations.

This is one reason RTM is often described as a practical option for leaseholders. It is designed to give you a route to take control when the current arrangements are not working.

Who it applies to in England

In England, RTM is aimed at leaseholders of qualifying flats within a shared building. It is for leaseholders who hold leases that fit within the scheme and who have the right kind of building structure and landlord relationship. If you are unsure whether your building and leases qualify, start with clear checks before spending time on notices.

You can read more about the qualifying criteria so you understand what the law looks at. Then use an eligibility step such as check if your building qualifies to narrow down the risk before you commit to forming an RTM company.

What changes when you exercise RTM

Exercising RTM is when the management control officially transfers. From the acquisition date, the RTM company takes over responsibility for managing the building from the freeholder or from the managing agent arrangement. The company can decide how services are delivered and can set budgets for service charge expenditure.

Over time, you should see changes in how maintenance is planned, how contractors are selected, and how leaseholders are consulted on spending. It also creates a clearer line of accountability, because the people making decisions are the leaseholders through their company.

What RTM does not give you

RTM does not remove your lease or change your lease term. You remain the tenant under your lease, and the freeholder remains the owner of the building. You continue to pay the rent and other obligations set out in your lease.

RTM also does not automatically fix every problem. The RTM company still needs effective budgeting, good record keeping, and oversight of contractors. If leaseholders do not engage with the process, service quality may not improve even after control transfers.

RTM versus buying the freehold

Buying the freehold is about ownership of the building and the land it stands on. Through collective enfranchisement, leaseholders move from being tenants to being owners through a share of freehold structure. That can bring long term benefits, including the ability to deal with leases in different ways.

RTM is different because it focuses on management. Instead of paying a purchase price for the freeholder interest, leaseholders take over the management role through the RTM company. Many people choose RTM first because it can give faster control of day to day decisions, while keeping the commitment lower than a freehold purchase.

RTM versus a tribunal appointed manager

Some leaseholders consider applying to have a manager appointed by a tribunal. A tribunal process can address management concerns, but the decision making structure is not the same as RTM. With RTM, you create an RTM company and the leaseholders control it.

With a tribunal appointed manager, an independent manager is appointed and operates within the tribunal framework. That can still improve practice, yet leaseholders generally do not gain the same level of direct control over budgets, contracts, and management strategy that comes from owning the RTM company.

Why leaseholders pursue RTM

Leaseholders usually pursue RTM because the management arrangements are not delivering. Service charges can be substantial, and when spending feels inefficient or poorly explained, leaseholders want better oversight. Maintenance delays can also damage property, and poor communication creates frustration.

Many claims are driven by managing agent performance, including slow responses to repairs, inconsistent follow through, and weak accountability. RTM gives leaseholders a route to replace the management setup and to set expectations directly through their company.

A brief outline of the RTM process

The process starts with eligibility and evidence. First, you confirm your building fits the scheme and that you have the right mix of qualifying leaseholders. Next, leaseholders set up an RTM company, which becomes the vehicle for owning the RTM rights.

Once your group is ready, you prepare and serve the required notices on the freeholder and follow the statutory steps in the notice period. The timeline leads to an acquisition date, when your RTM company takes over the management functions.

To keep paperwork organised, use generate your RTM notices as a starting point. For a full walkthrough of timing and what happens in practice, read the full RTM process.

Who RTM is not suitable for

RTM is not suitable if your building does not meet the qualifying conditions. In that situation, your route may be different, and attempting RTM anyway can waste time and effort.

It may also be a poor fit if your main priority is buying the freehold or sorting problems that are tied to lease ownership rather than management. For example, if the lease itself is the biggest concern, RTM cannot replace the freeholder's ownership role or automatically change your lease terms.

Finally, RTM is not for you if you and your fellow leaseholders cannot commit to the responsibilities that come with control. Good management still requires oversight, budgeting, and constructive engagement with contractors, because the RTM company is where decisions ultimately land.

This article is for educational purposes only and does not constitute legal advice. Every situation is different — if you need guidance specific to your building or lease, please consult a qualified solicitor.