Leaseholder guide · Updated 18 June 2026
What is Right to Manage (RTM)?
Right to Manage (RTM) is a statutory right under the Commonhold and Leasehold Reform Act 2002 that lets leaseholders of flats take over the management of their building from the freeholder - without proving fault, getting consent, or paying a premium. Leaseholders form an RTM company to run repairs, services and service charges themselves.
How does the Right to Manage process work?
Acquiring RTM follows a defined statutory route. Most uncontested claims take three to six months from start to finish.
- 1
Check you qualify
Confirm the building and leaseholders meet the statutory tests: at least two flats, at least two-thirds held by qualifying long leaseholders, and no more than 25% of the internal floor area in commercial use. Use our eligibility checker to confirm in under a minute.
- 2
Form an RTM company
Set up a private company limited by guarantee with the prescribed RTM articles of association. Every qualifying tenant must be invited to become a member, and you will need at least one director to run it.
- 3
Invite the other leaseholders
Serve a notice inviting participation on any qualifying tenants who are not yet members, giving them the chance to join the RTM company before you make the claim.
- 4
Serve the claim notice on the freeholder
The RTM company serves a formal claim notice on the landlord (and any existing managing or management company). Membership must by then include qualifying tenants of at least half the flats in the building.
- 5
Deal with the counter-notice
The landlord has one month to serve a counter-notice either admitting the claim or disputing your right to manage. If they dispute it, the First-tier Tribunal (Property Chamber) decides whether you qualify.
- 6
Take over on the acquisition date
If the claim is uncontested, the RTM company acquires management at least three months after the claim notice. From that date you appoint the managing agent, run repairs, and set and collect service charges.
Who qualifies for Right to Manage?
Both the building and the leaseholders have to meet statutory tests:
The building contains at least two flats.
At least two-thirds of the flats are held by qualifying tenants - leaseholders whose lease was originally granted for more than 21 years.
No more than 25% of the internal floor area is in non-residential (commercial) use.
It is not a converted building of four or fewer flats where the freeholder, or an adult family member, lives in one of them.
Membership of the RTM company includes qualifying tenants of at least half the flats in the building.
Not sure where your block stands? Use the free RTM eligibility checker for an instant indication.
Right to Manage vs RMC vs buying the freehold
RTM is one of three ways residents take control of a block. It is the cheapest and fastest, because it transfers management without changing who owns the freehold.
| Right to Manage | RMC | Collective enfranchisement | |
|---|---|---|---|
| What you gain | Control of management | Control of management (often via the lease or freehold) | Ownership of the freehold |
| Proof of fault needed | No | Not applicable | No |
| Pay a premium? | No | No | Yes - market value premium |
| Who owns the freehold | Freeholder keeps it | Often the RMC | Leaseholders' company |
| How it is created | Statutory RTM company | Set up by developer or named in the lease | Statutory enfranchisement process |
Managing through a Residents' Management Company instead? Read our companion guide on how an RMC works.
What can an RTM company do once it takes over?
From the acquisition date, the RTM company takes on the landlord's management functions for the building. It can appoint or replace the managing agent, organise repairs and maintenance of the common parts, set the service charge budget, collect service charges, and enforce the management-related covenants in the lease.
It does not take over ground rent, the right to grant new leases, or ownership of the freehold - those stay with the landlord. The RTM company must still comply with the Landlord and Tenant Act 1985, consult on major works under Section 20, and account properly for service charge money.
Right to Manage: frequently asked questions
Won RTM, or getting there?
Marklet gives RTM directors one place to track issues, monitor service charges, and keep a full record of every communication with the managing agent. Free to start.
Further reading
- How Right to Manage works: a step-by-step walkthrough
- What is a Residents' Management Company (RMC)?
- UK leasehold glossary
This guide is general information, not legal advice. For free, official guidance see LEASE (the Leasehold Advisory Service) and GOV.UK. Always take specialist advice before serving a claim notice.