Resources
What is an RTM company?
An RTM company is a private limited company formed specifically by leaseholders to exercise the Right to Manage. It must be incorporated at Companies House before a notice of claim can be served, and it becomes responsible for managing the building on the acquisition date.
Why does RTM require a company?
The statutory framework requires a legal entity to hold the management functions. The RTM company is that entity — it enters contracts, holds service charge funds, and appoints managing agents on behalf of leaseholders. With the right tools, leaseholders who self-manage through their RTM company can see exactly where service charge money goes and maintain full transparency over building finances. If you are mapping next steps for your block, our resources hub lists free tools and guides in one place.
How do you form an RTM company?
Incorporate at Companies House as a private company limited by guarantee. The company name must include “RTM” or “Right to Manage”. Articles of association must conform to the statutory model. Cost is approximately £50 online. When notices are ready, our free RTM notice wizard drafts the participation and claim notices using the correct wording and structure.
Who can be a director?
Any leaseholder can be a director. No professional qualifications required. Directors have standard Companies House obligations — filing confirmation statements, maintaining registered office, keeping accounts. Most RTM companies have 2–4 directors drawn from participating leaseholders. Unsure whether your building is in scope before you put names forward? Run the eligibility checker first.
What happens after acquisition?
The RTM company takes over management functions on the acquisition date. It can engage contractors, retender agreements, and steer service charge budgets — appointing a managing agent remains an option, but many groups prefer to self-manage: it is usually significantly cheaper than layering a third-party agent on top, puts savings back with residents, and keeps procurement decisions visible to the people who live there. With the right tools, leaseholders gain financial transparency (see where every pound of service charge goes), immediate document access for leases, insurance, and contracts, and maintenance and compliance tracking so repairs and statutory deadlines do not rely on an opaque inbox. For trade-offs and realism, read RTM pros and cons alongside the step sequence in how it works.
Service charge demands must be issued correctly — failure to comply with statutory requirements can make charges unenforceable.
What are the ongoing obligations?
Annual confirmation statement at Companies House (£34), maintain registered office, file accounts if required, ensure service charge demands meet statutory requirements, maintain RTM company membership as leaseholders change. The long-form walkthrough in our Right to Manage guide expands on how the process hangs together after transfer.
Can the RTM company be wound up?
Yes. Leaseholders can apply to the FTT to have management returned to the freeholder if the RTM company fails to perform. The company can also be voluntarily dissolved if leaseholders collectively enfranchise and no longer need it.
Frequently asked questions
Short answers for orientation only — not tailored to your leases.
Does the RTM company need to be registered before we serve notice?
Yes. The RTM company must be incorporated at Companies House before the notice of claim is served. The notice must include the company's registered number.
Can a non-leaseholder be a director?
No. Directors of an RTM company must be qualifying tenants — leaseholders with leases originally granted for more than 21 years.
What is the difference between an RTM company and a residents management company?
An RTM company is formed specifically to exercise the statutory Right to Manage. A residents management company (RMC) is typically set up under the lease and has different powers and obligations. They are not interchangeable.
How much does it cost to run an RTM company annually?
The main ongoing cost is the Companies House confirmation statement (£34 per year). If you self-manage your building the costs are significantly lower than appointing a managing agent — leaseholders who self-manage typically save 40 to 50% on costs by choosing their own contractors and removing the management markup.
Do we have to appoint a managing agent after RTM?
No. Many leaseholders choose to self-manage after RTM, which is significantly cheaper than appointing a managing agent. With the right tools, self-management is accessible to most engaged groups of leaseholders without specialist knowledge.
Educational use only. RightToManage.com provides general information to help leaseholders understand RTM. It is not legal advice. For your specific situation, speak to a qualified professional. Read our disclaimer.
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