Right to Manage Pros and Cons: Is RTM Worth It?

Q: What are the disadvantages of Right to Manage?

The main disadvantages of Right to Manage are: it takes 4–6 months minimum for an uncontested claim; it requires at least 50% of qualifying leaseholders to participate; the RTM company must be properly formed and notices served correctly or the claim fails; the freeholder can serve a counter-notice adding time and legal cost; the leaseholders take on ongoing responsibility for management oversight through the RTM company; and it does not cover the freehold or change the lease terms.

Q: Does Right to Manage cost money?

Yes. The main costs are solicitor fees for preparing and serving the notices, Companies House registration, and any tribunal costs if the freeholder disputes the claim. The freeholder's reasonable legal costs must also be reimbursed by the RTM company. Shared across a building, RTM typically costs in the region of £200–£300 per leaseholder — larger buildings generally benefit from economies of scale. Where RTM is necessary, these costs are usually recovered quickly through better management of service charges.

Published by Leaseholder Led · Independent guide — 5 May 2026

The short answer

Right to Manage gives leaseholders the power to appoint a better managing agent without proving fault or buying the freehold. The downsides are time, legal process, leaseholder organisation, and ongoing responsibility after acquisition. RTM is often the right answer when a freeholder controls management and will not cooperate. It is not always the fastest route when a simpler alternative already exists.

What problem does Right to Manage solve?

In the majority of leasehold buildings, the freeholder has the contractual right to appoint the managing agent. Leaseholders pay for that agent through their service charges, but have no direct power to change or remove them. If the agent is performing poorly and the freeholder refuses to act, leaseholders are stuck.

Right to Manage breaks that deadlock. It gives leaseholders a statutory route to take over the management appointment — not by proving the current arrangement is bad, but by meeting the legal eligibility conditions and following the prescribed process. Once RTM takes effect, the leaseholder-controlled RTM company becomes the client. They choose the managing agent. They set the standards.

Before committing to RTM, it is worth checking whether your building already has a faster route. We can look at the legal structure and tell you whether RTM is necessary or whether leaseholders can act more quickly.

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The advantages of Right to Manage

1. You do not need to prove fault

RTM is a no-fault right. You do not need to demonstrate that the current managing agent has failed, that service charges have been misused, or that the freeholder has breached the lease. If the building qualifies and the process is followed correctly, leaseholders can take management control regardless of how the current arrangement is performing. This is different from tribunal applications for management orders, which require evidence of mismanagement.

2. Leaseholders choose the managing agent

Once RTM takes effect, the RTM company appoints the managing agent. Leaseholders can select an agent through a competitive tender, set clear expectations from the start, and replace the agent if performance falls short — without needing anyone else's permission. This is the core benefit of RTM: it shifts the power to appoint from the freeholder to the leaseholders who fund management through their service charges.

3. More control over service charges and standards

With leaseholders in control of the management appointment, budgets, contractor choices, and reporting standards become negotiable. Many RTM companies find that moving to a transparent tender process and setting clear contractual standards leads to better value and more accountable management — even before any change in what is being spent.

4. No requirement to buy the freehold

Collective enfranchisement — buying the freehold — gives leaseholders maximum long-term control, but it is expensive and complex. RTM is a lower-cost, lower-stakes first step that delivers real management control without a large capital outlay. For many buildings, RTM is the practical route where enfranchisement is not yet viable.

5. The freeholder cannot simply block it

A freeholder who disagrees with RTM cannot simply refuse. They can serve a counter-notice disputing eligibility, but their grounds for doing so are limited to specific statutory conditions. If the claim is well-prepared and the building qualifies, the freeholder's options to obstruct are narrow. The RTM process has statutory force behind it.

The disadvantages of Right to Manage

1. It takes time

A straightforward RTM claim takes four to six months from forming the company to the acquisition date. If the freeholder serves a counter-notice, the timeline extends — sometimes significantly if the dispute goes to the First-tier Tribunal. For buildings where an emergency change of agent is needed, RTM is rarely the fastest available route.

2. You need leaseholder participation

At least 50% of qualifying leaseholders must join the RTM company before the claim notice is served. Securing that level of engagement can be harder than the legal paperwork — particularly in buildings with absent landlords, short-let investors, or limited communication between neighbours. Leaseholder apathy is one of the most common reasons RTM claims stall.

3. The process has formal legal requirements

RTM involves statutory notices that must be served in the correct form, on the correct parties, in the correct order. A defective participation notice or claim notice can give the freeholder grounds for a counter-notice — and a failed claim cannot be re-served for 12 months. Using an experienced solicitor is strongly advisable, and that costs money.

4. Leaseholders take on ongoing responsibility

RTM is not a one-off legal event. After acquisition, the RTM company needs engaged directors who will instruct the managing agent, review budgets, and make decisions on the building's behalf for years to come. Buildings where one or two driven individuals carried the RTM process can struggle if those individuals step back — good governance from the start matters.

5. RTM may not cover everything

RTM transfers management functions, but does not transfer the freehold or change the lease. The freeholder retains their ownership interest and certain consent rights under the lease. In some buildings — particularly those on larger mixed-use or mixed-tenure estates — RTM may not cover all the services leaseholders care about.

Right to Manage pros and cons at a glance

Pros	Cons
No need to prove fault or mismanagement	Minimum 4–6 months for an uncontested claim
Leaseholders appoint and can replace the managing agent	Requires 50% leaseholder participation
More transparency over service charges and budgets	Formal legal process — errors can delay the claim by 12 months
Lower cost than collective enfranchisement	RTM company needs engaged directors after acquisition
Freeholder cannot block a valid claim	Does not transfer the freehold or change lease terms
Permanent management control once in place	Some estate-wide services may not be included

When RTM is usually worth doing

RTM is most worth pursuing where:

•A freeholder controls the management appointment and is unwilling to change agent voluntarily
•Leaseholders have no direct contractual route to appoint or remove the managing agent
•A motivated group of leaseholders can reach the 50% participation threshold
•There are willing directors who will stay engaged after acquisition

RTM is less likely to be the right route where leaseholders already control a Residents' Management Company with the power to appoint the agent; where an RTM company already exists; where the freeholder has indicated willingness to cooperate; or where an emergency change of agent is needed within weeks rather than months.

What does RTM actually cost?

The main costs of an RTM claim are:

•Solicitor fees — preparing notices, advising on eligibility, managing the process. The amount varies depending on the size and complexity of the building.
•Companies House registration — a small fixed cost for incorporating the RTM company.
•Freeholder's costs — the RTM company must pay the freeholder's reasonable costs in connection with the claim (not tribunal costs if they dispute and lose, but pre-acquisition costs). These are often modest for a clean claim.
•Tribunal costs — if the claim is disputed and goes to tribunal, both parties bear their own legal costs in most cases (though there are exceptions where a party has acted unreasonably).

Shared across a building, RTM typically costs in the region of £200–£300 per leaseholder. Larger buildings generally benefit from economies of scale — the fixed elements of the process spread across more people. These costs are usually recovered quickly once a better-value managing agent is appointed.

The right answer depends on your building's legal structure. We can check whether RTM is necessary, whether a simpler route already exists, and what the fastest practical path looks like for your building.

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Common questions

Is Right to Manage worth it?

Right to Manage is worth it when leaseholders have no other practical route to appoint a better managing agent — typically where a freeholder controls the management appointment and is unwilling to cooperate. For buildings where leaseholders already have management control through a Residents' Management Company, or where the freeholder is willing to change agent voluntarily, RTM is often unnecessary and slower than the alternatives.

What are the disadvantages of Right to Manage?

The main disadvantages are: it takes 4–6 months minimum; it requires at least 50% leaseholder participation; notices must be served correctly or the claim fails; the freeholder can dispute the claim; and leaseholders take on ongoing management oversight responsibility through the RTM company.

Does Right to Manage cost money?

Yes. The main costs are solicitor fees, Companies House registration, and any tribunal costs if the claim is disputed. Shared across a building, RTM typically costs in the region of £200–£300 per leaseholder — larger buildings tend to benefit from economies of scale. These costs are usually recovered quickly through better value management once a new agent is appointed.

What happens to service charges after Right to Manage?

After Right to Manage takes effect, the RTM company sets and collects service charges. The amount leaseholders pay depends on the budget set by the RTM company and its managing agent. Many leaseholders find that service charges become more transparent and better aligned with actual costs once they control the appointment — though RTM itself does not guarantee lower service charges.

Can Right to Manage be reversed?

Yes. Right to Manage can be surrendered — the RTM company can give up its management functions and management reverts to the freeholder. This rarely happens voluntarily but can occur if leaseholder engagement collapses and the company stops functioning effectively.

Related guides

•What Is Right to Manage and Do I Need It? — eligibility, costs and the full overview
•The Right to Manage Process: Step-by-Step Guide — the full process from eligibility check to handover
•What Is a Right to Manage Company? — members, directors and responsibilities
•Can I Change My Managing Agent Without Right to Manage? — the faster route where it exists

This guide is for general information only and does not constitute legal advice. For advice specific to your building and circumstances, consult a solicitor specialising in leasehold property.