What Is the Right to Manage? Pros and Cons

Davis Law has pros and cons of the Right to Manage (RTM) law in Buckinghamshire and throughout the UK. Leasehold property owners often face rising service charges, poor maintenance, and a lack of say in running their buildings. The Commonhold and Leasehold Reform Act 2002 introduced RTM to give qualifying leaseholders the legal right to take over the management of their building without needing to prove any fault by the freeholder. It can be a game-changer for those tired of poor service and high costs. Learn what you need to know about the Right to Manage below.

What Is the Right to Manage?

Right to Manage allows leaseholders of flats to set up a special company to take over building management from the landlord or their appointed agent. This responsibility includes handling repairs, maintenance, insurance, and service charges. It’s available to leaseholders of flats, not houses, and applies even when the freeholder has done nothing wrong. The primary purpose is to give leaseholders more control over their living environment and finances. It doesn’t give ownership of the building, but hands over responsibility for day-to-day decisions and spending.

Eligibility for Right to Manage

Not every building qualifies as a Right to Manage leasehold property. To use RTM, the building must meet several legal criteria, including the following:

• At least two flats must be in the building.
• At least 50% of leaseholders must agree to participate.
• The building must be self-contained and include no more than 25% non-residential use.
• It cannot be a local authority-owned property.

Leaseholders must form a Right to Manage company to take over management duties from the freeholder. This company must be structured appropriately and follow specific legal rules for the Right to Manage process.

The Right to Manage Process—Step by Step

Exercising RTM involves a few straightforward steps, which you should handle carefully. A mistake in notices or timelines can derail the process. Here’s the Right to Manage process, step by step:

• Check Eligibility—Ensure the building and leaseholders meet legal criteria for the Right to Manage process.
• Form a Right to Manage Company—A Right to Manage company is a limited liability company with participating leaseholders as members.
• Serve Formal Notices—The RTM company must notify all qualifying tenants and the freeholder of its intentions.
• Landlord’s Response—The landlord can challenge the claim, usually on eligibility grounds. They will note any potential Right to Manage problems.
• Transfer of Management—Unless there are valid objections, management responsibilities move to the RTM company on a set date.

Advantages of Exercising the Right to Manage

Right to Manage puts leaseholders in charge, meaning improved spending, quicker decisions, and better value for money. Here are a few reasons why thousands of leaseholders choose RTM every year:

• Control Over Costs—Leaseholders set budgets and avoid unnecessary charges for their Right to Manage leasehold property. They also make key management decisions.
• Better Service—The RTM company chooses contractors and ensures quality work.
• Financial Transparency—The Right to Manage company enjoys increased insight into service charges.
• No Proof of Fault Needed—Leaseholders don’t have to show mismanagement by the freeholder.

Disadvantages/Challenges of Right to Manage

Right to Manage brings new responsibilities, but planning, communication, and professional assistance can reduce these risks. Here are the most common Right to Manage problems:

• More Work for Leaseholders—Managing a building takes time, effort, and planning for the new RTM company.
• Disputes Within the Group—Leaseholders might disagree on budgets, repairs, or contractor choices.
• Operating Costs—Legal and admin fees can add up, especially if the Right to Manage leasehold property doesn’t seek legal advice early.
• Inexperience Factors—Without property management experience, the RTM company could make costly errors.

Why Professional Legal Advice Is Essential

The Right to Manage process involves complex rules. The Right to Manage leasehold property must handle every step carefully, from forming the RTM company to serving legally valid notices. Missing a detail could delay the process or result in failure. At Davis Law, our residential property solicitors can assist with the following Right to Manage process steps and more:

• Confirm building and leaseholder eligibility.
• Draft and serve accurate notices.
• Prevent costly mistakes.
• Support the RTM company long-term.

Getting it right the first time is cheaper, faster, and less stressful. Professional support from Davis Law can ensure that your RTM company starts strong and stays compliant.

Conclusion

There are pros and cons to Right to Manage in Buckinghamshire and throughout the UK, but Davis Law can help leaseholders achieve freedom while managing responsibility. If your service charges are high, the building has poor maintenance, or the landlord is unresponsive, RTM could be the answer. But weigh the pros and cons, get expert advice from Davis Law, and ensure your fellow leaseholders are ready to commit. Our team makes the process more transparent, straightforward, and likely to succeed, so contact us today for legal assistance.

Frequently Asked Questions About Right to Manage

At Davis Law, our legal team is here to share everything you need about Right to Manage for Buckinghamshire and the surrounding areas. From experienced Right to Manage guidance to analysing potential Right to Manage problems, we can help you. Here are answers to a few common questions about RTM: