Right to Manage (RTM) allows qualifying leaseholders in England and Wales to take control of the management of their building without having to prove that the freeholder or managing agent has done anything wrong. The key question is whether the building, the leases and the RTM company meet the statutory tests.
This guide explains the current eligibility rules, including the mixed-use reforms that came into force on 3 March 2025, and outlines what to do once you know your building qualifies.legislation.gov+1
Important: This article is a practical guide, not legal advice. RTM notices and deadlines are statutory, so obtain professional advice where the building is complex, mixed-use, has unusual ownership arrangements or is likely to be contested.
What is Right to Manage?
Right to Manage is a statutory right under Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002. It enables a specially formed RTM company to acquire the management functions for qualifying premises from the landlord or their appointed managing agent. legislation.gov
It is a no-fault process. Leaseholders do not need to establish poor service, excessive costs or misconduct; they need to meet the legal conditions and follow the statutory procedure correctly.
RTM changes management control, not freehold ownership. The landlord retains ownership of the freehold, while the RTM company assumes responsibility for the management functions that transfer on the acquisition date.
RTM eligibility checklist
Your building must satisfy several conditions before an RTM company can make a valid claim.
The building must be self-contained
The premises must be a self-contained building, or a self-contained part of a building, with or without appurtenant property. legislation.gov
In straightforward terms, a standalone purpose-built block will often satisfy this requirement. More care is needed where residents share entrances, stairwells, services, structure or facilities with another building or a wider estate.
A self-contained part of a larger building can still qualify, but the legal and practical boundaries of the claim must be clear.
There must be at least two qualifying flats
The premises must contain at least two flats held by qualifying tenants. A single-flat property cannot use RTM. legislation.gov
The relevant question is not simply how many homes are physically in the building. It is how many flats are held by people who meet the statutory definition of a qualifying tenant.
At least two-thirds of flats must be held by qualifying tenants
At least two-thirds of all flats in the premises must be held by qualifying tenants. legislation.gov
For RTM, a qualifying tenant is generally the tenant of a long lease. A long lease usually means a lease originally granted for more than 21 years; the remaining years on the term are not the deciding factor.
For example, in a 12-flat block, at least 8 flats must be held by qualifying tenants. A lease originally granted for 99 years may still count even if considerably fewer than 99 years remain.
No more than 50% may be non-residential
The premises must not have more than 50% non-residential use by total internal floor area. This is especially important for mixed-use buildings with shops, offices, storage or other commercial space.www+1
This threshold was increased from 25% to 50% on 3 March 2025. That change may mean a building that was previously outside the RTM rules is now eligible. legislation.gov
If the calculation is close to the limit, obtain reliable floor-area information and specialist advice before serving notices. The definition and treatment of particular spaces can matter.
The RTM company must hold at least half the flats
Before serving the RTM claim notice, qualifying tenants who are members of the RTM company must hold at least half of the flats in the premises. Where there are only two qualifying tenants, both must be members. legislation
This is why early resident engagement matters. An RTM claim is not simply a directors’ decision: the company must reach the statutory membership threshold before it can proceed.
If one leaseholder owns more than one qualifying flat, those holdings can be relevant to the test. Do not rely on an informal “one owner, one vote” rule when checking eligibility; assess the actual qualifying leases and flats held.
Buildings that may be excluded
Meeting the main tests does not always guarantee eligibility. Certain premises are excluded or can require more detailed legal analysis.
A resident landlord exemption may apply where the landlord occupies a flat in the building and the building contains no more than four flats. This is one area where the underlying facts and ownership structure need to be checked carefully.
Complex converted properties, buildings with multiple landlords, shared estates and blocks with intricate service arrangements can also create issues around the extent of the premises and the functions that will transfer.
A share-of-freehold building may technically be capable of using RTM, but it is not automatically the best route. If leaseholders already control the relevant resident management company or freehold company, improving the existing governance may be more practical than creating an RTM structure.
What changed in March 2025?
Several RTM reforms in the Leasehold and Freehold Reform Act 2024 came into force on 3 March 2025. legislation.gov
The most important change for eligibility is the increase in the non-residential threshold from 25% to 50% of total internal floor area. This opens RTM to more mixed-use blocks. legislation.gov
The costs regime also changed. An RTM company and its members are generally not liable for another party’s costs merely because they make a claim, but this is not a blanket “cost-free” rule. The company can still be liable for reasonable costs of complying with statutory information requirements, and a tribunal can make a costs order in limited cases, including where a claim is withdrawn or ceases to have effect and the RTM company has acted unreasonably.
The practical message is simple: the rules are more favourable than they were, but careful preparation and accurate notices remain essential.
What happens after you qualify?
Once you are confident the building meets the eligibility tests, the RTM process follows a statutory sequence.
Set up the RTM company. The company must be incorporated for the purpose of acquiring and exercising the right to manage.
Build membership. Qualifying leaseholders need to become members in sufficient numbers to meet the statutory threshold.
Serve Notices of Invitation to Participate. The RTM company must invite qualifying tenants who are not already members to join. This is mandatory. legislation
Wait at least 14 days. A claim notice cannot be served until at least 14 days have passed after the invitation notices have been served. legislation
Serve the claim notice. The notice must go to the relevant landlord and other parties specified by the legislation. It must include the required information and dates.legislation+1
Allow for the counter-notice. The claim notice must provide at least one month for recipients to respond by counter-notice. legislation
Prepare for acquisition. If the claim is admitted or not validly disputed, the RTM company prepares to take on the management functions on the statutory acquisition date.
If a counter-notice disputes entitlement, the RTM company will usually need to apply to the First-tier Tribunal for a determination. The procedural deadlines are strict, so take advice promptly if a challenge is received.legislation+1
Common RTM mistakes
Treating eligibility as a quick headcount
Counting flats is only the beginning. You must distinguish between all flats, flats held on qualifying leases and flats held by qualifying tenants who are members of the RTM company.
Miscalculating mixed-use space
The current limit is 50% non-residential internal floor area, not 25%. However, buildings close to the threshold should not rely on estimates or marketing floorplans alone.
Serving notices in the wrong order
The Notice of Invitation to Participate comes before the claim notice, and the statutory waiting period matters. Failing to follow the sequence can put the claim at risk. legislation
Underestimating the handover
Winning the right to manage is not the end of the work. The RTM company needs clear records, financial controls, supplier arrangements, communication processes, insurance oversight and a plan for service-charge administration from day one.
How Manage.Management supports RTM companies
An RTM company needs more than a legal notice pack. It needs a practical operating system for resident communication, documents, meetings, decisions, financial visibility and the ongoing governance of the building.
Manage.Management gives RTM directors and leaseholders a shared workspace to keep key information in one place, coordinate decisions and maintain a clear record of building management activity before and after acquisition.
If you are retaining a managing agent after RTM, the platform can support transparent oversight and collaboration rather than forcing an all-or-nothing choice between self-management and agent management.
CTA: Check your RTM eligibility with Manage.Management
Frequently asked questions
Can a mixed-use block qualify for RTM?
Yes. A mixed-use building can qualify provided the non-residential part does not exceed 50% of the total internal floor area and the other RTM conditions are met. The 50% threshold has applied since 3 March 2025.legislation.gov+1
Do all leaseholders need to support RTM?
No. However, before the claim notice is served, qualifying tenants who are members of the RTM company must hold at least half the flats in the premises. If there are only two qualifying tenants, both must be members. legislation
Do we have to prove the managing agent is poor?
No. RTM is a no-fault statutory right. The claim depends on eligibility and procedure rather than proving bad management.
Does RTM mean the leaseholders own the freehold?
No. RTM transfers management functions to the RTM company; it does not transfer the freehold.
Can we keep our existing managing agent?
Yes. After RTM takes effect, the RTM company can appoint and oversee a managing agent, replace one or carry out management itself. The key change is that the RTM company gains control of the management appointment and decisions.
Do we need a solicitor?
You are not legally required to appoint one, but professional advice is sensible where the claim involves a mixed-use block, a complex ownership structure, uncertainty over qualifying tenants or the risk of a challenge. RTM notices are statutory documents and procedural mistakes can cause delay.
Ready to check your building?
Start with the essentials: count the flats, identify which are held by qualifying tenants, assess the non-residential internal floor area and establish whether enough qualifying leaseholders will join the RTM company.
If the building appears to qualify, organise the evidence and resident support before starting the formal notice process. Manage.Management can help your prospective RTM company organise the documents, communication and governance needed for a more controlled transition into leaseholder-led management.