Right to Manage (RTM) lets qualifying leaseholders in England and Wales take over the management of their building without proving fault by the freeholder or existing manager. The freeholder keeps the freehold, but the RTM company takes responsibility for the building’s management functions.
The process is governed by Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002. It is structured and time-sensitive, so it pays to organise evidence, leaseholder details, notices and key dates before starting.
Important: This guide is general information, not legal advice. RTM claims involve statutory notices and deadlines, so obtain specialist advice if eligibility or notice service is uncertain.
What is Right to Manage?
RTM is a no-fault statutory right. Leaseholders do not need to show that the freeholder or managing agent has performed badly.
Instead, qualifying leaseholders establish an RTM company, meet the participation threshold and follow the formal statutory process. Once the right is acquired, the RTM company assumes the relevant management functions for the building.
RTM does not transfer ownership of the freehold. Leaseholders seeking to buy the freehold would need to consider collective enfranchisement, which is a separate process.
Step 1: Check whether the building qualifies
Start by confirming that the premises and leaseholders meet the statutory requirements.
In broad terms, the building must:
Be self-contained, or a self-contained part of a building
Contain at least two flats held by qualifying tenants
Have at least two-thirds of its flats held by qualifying tenants
Be no more than 25% non-residential by internal floor area
There are important exclusions and special cases, including certain resident-landlord buildings. The rules can also be more complex where a block forms part of a wider estate, has commercial units, or has intermediate landlords.
Do not rely on assumptions. Review the leases, the ownership structure and the building layout before committing to a claim.
Step 2: Build leaseholder support
The RTM company needs enough qualifying tenant members on the date it serves the Claim Notice.
In a building with only two qualifying tenants, both must be members.
In other cases, the company must include qualifying tenants of at least half of the total number of flats in the premises.
For example, if a block has 10 flats, the RTM company needs qualifying tenants of at least five flats as members when the Claim Notice is served.
Start communication early. Explain what RTM will change in practice: greater control over budgets, maintenance, contractors, insurance, documents and building decisions—but also real responsibilities for the company and its directors.
Step 3: Incorporate the RTM company
Before formal notices are served, incorporate an RTM company at Companies House.
The company must be a private company limited by guarantee and use the prescribed RTM company articles applicable in England or Wales. Using the correct company structure and articles is essential.
Participating qualifying tenants become members of the company. Directors are normally leaseholders who are prepared to oversee governance, decision-making and the relationship with any appointed managing agent.
Step 4: Serve Notices of Invitation to Participate
Before serving the Claim Notice, the RTM company must give a Notice of Invitation to Participate (NIP) to every qualifying tenant who is not already a member and has not agreed to become one.
The notice should:
State that the company intends to acquire the Right to Manage
Name the existing RTM company members
Invite the recipient to join
Include a copy of the articles of association, or give compliant arrangements for inspecting and obtaining them
The RTM company must wait at least 14 days after giving the required NIPs before serving its Claim Notice.
A recent Supreme Court decision clarified that a landlord cannot use the particular NIP failures considered in that case, or the related 14-day timing failure, as a Counter-Notice ground to defeat an otherwise qualifying RTM claim. That is not a reason to be casual with notices: the statutory process should still be followed carefully, and an affected person may seek a tribunal order to correct non-compliance.
Keep a complete service log, including the recipient, address, date, method of service and supporting evidence.
Step 5: Prepare and serve the Claim Notice
The Claim Notice formally starts the RTM claim.
It must be served by the RTM company on every relevant landlord under a lease of the whole or part of the premises, relevant non-landlord/non-tenant parties to those leases, and any court or tribunal-appointed manager. Every qualifying tenant must also receive a copy.
The notice must include prescribed information, including:
The premises and the grounds on which they qualify
The full name and flat address of each qualifying-tenant member
Sufficient lease details to identify each member’s lease
The RTM company’s name and registered office
The deadline for a Counter-Notice
The proposed acquisition date
Identify all interests and recipients carefully. A professional review of the notices and service list is often worthwhile, particularly in a mixed-use building or where there are intermediate landlords.
Step 6: Allow for the Counter-Notice period
The Claim Notice must specify a Counter-Notice deadline that is at least one month after the Claim Notice is served.
A recipient may:
Admit that the RTM company is entitled to acquire the Right to Manage
Dispute entitlement on a permitted statutory ground
Not respond
If there is no valid Counter-Notice disputing entitlement, the claim can proceed to the acquisition date in the Claim Notice.
If a Counter-Notice disputes entitlement, the RTM company must apply to the First-tier Tribunal (Property Chamber) within two months of the Counter-Notice. If it misses that deadline, the claim is generally treated as withdrawn.
Step 7: Plan the acquisition date
The acquisition date must be specified in the Claim Notice and must be at least three months after the Counter-Notice deadline—not merely three months after the Claim Notice is served.
That means an uncontested claim has a statutory minimum timetable of roughly:
At least 14 days between NIPs and the Claim Notice
At least one month for the Counter-Notice period
At least three further months to the acquisition date
In practice, allow longer. You will need time to set up the operational, financial and compliance arrangements that the RTM company will need from day one.
If a claim is disputed and the tribunal confirms the company’s entitlement, the eventual acquisition date is determined under the statutory provisions rather than simply following the original timetable.
Step 8: Prepare for day one
Do not wait for the acquisition date to make the management plan. Before the RTM company takes over, it should prepare for:
Building insurance and renewal dates
Bank accounts and service-charge administration
Current contracts and supplier contact details
Fire, health-and-safety and other compliance records
Repairs, planned maintenance and urgent works
Leaseholder communications and issue reporting
Handover of relevant documents, information and funds
Whether to self-manage or appoint a professional managing agent
The RTM company may use statutory rights to obtain information needed to prepare its Claim Notice and, after the claim begins, may have rights of access for relevant claim matters. Good records and a clear handover plan reduce the risk of disruption.
Step 9: Take over management
On acquisition, the RTM company takes responsibility for the relevant management functions. The freeholder still owns the freehold, but the RTM company becomes responsible for managing the building within the scope of RTM.
Its practical responsibilities can include:
Collecting and accounting for service charges
Arranging buildings insurance where applicable
Managing repairs, maintenance and contractors
Maintaining building and financial records
Consulting leaseholders on qualifying major works and long-term agreements under Section 20 where required
Meeting company-law, health-and-safety and other statutory obligations
Communicating decisions and progress clearly with leaseholders
The freeholder retains rights in certain circumstances and may be entitled to receive notices about particular matters. RTM changes management control; it does not remove every freeholder interest.
Common mistakes to avoid
The most common issues are preventable:
Starting before checking the building and membership thresholds
Using unsuitable company articles
Serving notices without a verified recipient and service list
Confusing the NIP 14-day waiting period with a recipient response deadline
Setting the acquisition date too early
Failing to include the required lease and member information in the Claim Notice
Treating the outgoing managing agent as the only relevant recipient
Missing the two-month tribunal deadline after a disputed Counter-Notice
Reaching acquisition day without an insurance, banking, records and contractor plan
How long does RTM take?
An uncontested RTM claim cannot be completed immediately because the legislation builds in minimum notice periods.
As a practical guide:
The real-world timetable is often longer. Gathering lease information, identifying all landlords, preparing notices, coordinating leaseholders and arranging the management handover all take time. A disputed claim will usually take longer because of tribunal proceedings.
Use the Manage.Management RTM Toolkit
The Manage.Management RTM Toolkit gives leaseholders a structured way to organise an RTM claim from the first eligibility check through to acquisition-day preparation.
Use the toolkit to:
Work through the RTM process in the correct order
Track leaseholder support and company membership
Keep key dates, documents and action items in one place
Coordinate communications with leaseholders
Prepare for the operational handover after RTM
Move into a shared workspace for issues, documents, decisions and financial tracking
The toolkit is designed to help groups stay organised and reduce avoidable administrative mistakes. It does not replace legal advice where a building’s eligibility, ownership structure, notices or a disputed claim requires specialist input.
Start with the RTM Toolkit at Manage.Management and build a clear, accountable path to resident-led management.
Frequently asked questions
Do all leaseholders need to agree?
No. The RTM company needs qualifying tenant members for at least half of the flats on the Claim Notice date, except where there are only two qualifying tenants, when both must be members.
Can a freeholder refuse RTM?
A freeholder cannot reject RTM simply because they do not want to lose management control. They may serve a Counter-Notice disputing entitlement on statutory grounds, and the First-tier Tribunal can decide the issue if the RTM company applies in time.
Does RTM mean leaseholders own the freehold?
No. RTM transfers the right to manage, not ownership of the freehold.
Can an RTM company appoint a managing agent?
Yes. The RTM company may self-manage, appoint a professional managing agent, or combine director oversight with outsourced day-to-day management.
Is Right to Manage available across the UK?
The statutory RTM regime under the Commonhold and Leasehold Reform Act 2002 applies in England and Wales. Scotland and Northern Ireland have different legal frameworks.