What Is Right to Manage and Do I Need It?
Published by Leaseholder Led · Independent guide — updated 2026
The short answer
Right to Manage (RTM) is a legal right that lets leaseholders in England and Wales take control of their building's management — without needing to prove anything is wrong with the current management. It was introduced by the Commonhold and Leasehold Reform Act 2002 and gives leaseholders the power to choose who manages their building, how service charges are spent, and which contractors are used. You don't need to buy the freehold. You don't need the freeholder's permission. And you don't need to prove fault.
But here's the thing most guides don't tell you: many leaseholders don't actually need RTM to change their managing agent. If your building already has a Residents' Management Company (RMC) or an existing RTM company, you may already have the authority to change agent using ordinary company law — no RTM process required. This guide explains what RTM is, how it works, and how to figure out whether you actually need it.
How Right to Manage works
RTM transfers the landlord's management functions to a new company — the RTM company — which is set up and controlled by the leaseholders. Once the RTM company takes over, it becomes the entity responsible for appointing and instructing a managing agent, setting service charge budgets, commissioning repairs, placing insurance, and overseeing day-to-day building management.
An important distinction: RTM does not mean self-management. Most RTM companies appoint a professional managing agent to handle the day-to-day work. RTM gives you the power to choose that agent and hold them accountable — it doesn't mean leaseholders need to manage the building themselves.
The RTM company must be a private company limited by guarantee, registered at Companies House, with articles of association that specify the right to manage as one of its objects. By law, its name must end with “RTM Company Limited.”
Is your building eligible?
Not every building qualifies for RTM. The eligibility conditions are set out in Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002. Here's what your building needs:
| Condition | What it means |
|---|---|
| Self-contained building | The building must be structurally detached, or capable of being separated from an adjoining building without significant disruption to services. An open-plan shared car park connecting two buildings can be fatal to eligibility (Courtyard RTM Co v Rockwell [2025] UKUT 39). |
| At least two flats | The building must contain two or more flats held on long leases. |
| No more than 25% non-residential | The internal floor area used for non-residential purposes (shops, offices, etc.) must not exceed 25% of the total. Note: the Leasehold and Freehold Reform Act 2024 increased this threshold to 50%, but this provision is not yet in force. |
| At least 50% leaseholder participation | At least half of the qualifying leaseholders in the building must be members of the RTM company when the claim is made. |
| No local authority landlord | The building is not eligible if a local authority is the immediate landlord of any qualifying leaseholder. |
| No current RTM in place | Another RTM company cannot already be exercising the right to manage, or have done so within the previous four years. |
Shared ownership leaseholders count as qualifying tenants and can participate in RTM. This was confirmed in Avon Ground Rents Ltd v Child [2023] and applies even where the freeholder is a housing association.
Converted houses with fewer than four flats are excluded if the freeholder or a family member lives in one of the flats (the “resident landlord” exclusion).
The RTM process: what actually happens
The formal RTM process follows a prescribed sequence set out in law. In practice, the full timeline from start to finish is typically 4–6 months, though it can take longer if the freeholder disputes the claim.
Step 1 — Form the RTM company. Register a company at Companies House with the correct model articles and the mandatory “RTM Company Limited” name. This can be done online and typically costs under £100.
Step 2 — Invite participation. The RTM company serves a Section 78 “Notice Inviting Participation” on every qualifying leaseholder in the building who is not already a member. This gives them the opportunity to join the RTM company before the formal claim is made.
Step 3 — Serve the claim notice. Once at least 50% of qualifying leaseholders are members, the RTM company serves a Section 79 “Notice of Claim” on the freeholder (and any intermediate landlords and the current managing agent). The notice must specify an “acquisition date” — the date on which management will transfer — which must be at least three months after the counter-notice deadline.
Step 4 — Counter-notice. The freeholder has one month to respond. They can either accept the claim or serve a counter-notice disputing it. If they dispute, the grounds are limited — they cannot object simply because they don't want to lose control. Valid grounds relate to whether the eligibility conditions are met.
Step 5 — Tribunal (if disputed). If the freeholder disputes the claim, the RTM company can apply to the First-tier Tribunal (Property Chamber) within two months for a determination. If the tribunal finds in favour of the RTM company, the acquisition date is set at three months after the determination.
Step 6 — Acquisition and handover. On the acquisition date, management functions transfer to the RTM company. The freeholder must hand over relevant documents, contractor details, and any service charge funds held. The RTM company then appoints its chosen managing agent.
Since March 2025, leaseholders are no longer liable for the freeholder's costs of the RTM process (except in very limited circumstances). This removes what was previously a significant financial deterrent.
Not sure if your building is eligible for RTM? We can check for you — free and with no obligation.
Check if your building qualifiesDo you actually need RTM?
This is the question that matters most — and it's the one that most guides skip entirely. RTM is a powerful tool, but it's not the only way to change your managing agent, and it's not always the right one.
You probably DON'T need RTM if:
Your building has a Residents' Management Company (RMC) — a company named in the lease as the entity responsible for managing the building, with leaseholders as its shareholders or members. If you have one, the RMC directors likely already have the authority to change managing agent without RTM under the terms of the management contract. Check your lease, check the company's articles of association on Companies House, and check whether the current management contract has a notice period. If the directors have the authority, this route is faster, cheaper, and simpler than RTM.
An RTM company already exists from a previous claim. If so, that company is already the management company. It can change agents without a new RTM process — it just needs a board decision and a notice period on the existing contract.
The freeholder is willing to cooperate. Less common, but not unheard of — particularly with absent or passive freeholders. If you can demonstrate organised leaseholder support and a credible replacement agent, some freeholders will agree to change without a fight.
You probably DO need RTM if:
Your building is in a “classic leasehold” setup where a third-party freeholder controls management and is unwilling to engage. This is the most common scenario where RTM is the right answer. The freeholder appoints the managing agent, and leaseholders have no contractual mechanism to change that without acquiring the right to manage.
RTM vs other options
| Right to Manage | Tribunal-appointed manager (s.24 LTA 1987) | Buying the freehold | |
|---|---|---|---|
| What it does | Transfers management to an RTM company controlled by leaseholders | Court appoints an independent manager to replace the current one | Leaseholders collectively purchase the freehold |
| Proof of fault needed? | No — “no-fault” right | Yes — must prove management failures | No |
| Cost | Low (company formation + solicitor fees for the claim) | Tribunal fees + solicitor + surveyor | Significant — market value of freehold + legal costs |
| Leaseholder control | Full — you choose the agent and set the budget | Limited — tribunal chooses the manager | Full — you own the building |
| Available against housing associations? | Yes (subject to eligibility) | No — s.24 is barred where landlord is a registered provider of social housing | Generally no |
| Permanence | Permanent unless the company is wound up or the right is lost | Fixed term (typically 3–5 years, renewable) | Permanent |
Not sure which route is right for your building? Our free viability check looks at your legal structure and tells you the fastest path to a better managing agent.
Check if your building qualifiesWhat RTM doesn't cover
RTM gives you control over the management of your building — but not necessarily everything outside it. If your building is part of a larger estate with shared gardens, roads, or communal facilities, the freeholder typically retains control of those “estate charges” even after RTM. This was confirmed by the Supreme Court in FirstPort Property Services Ltd v Settlers Court RTM Company Ltd [2022] UKSC 1.
In practice, this means a dual-charge structure: the RTM company manages block-level services, while the freeholder's agent continues to manage estate-wide services. If a majority of blocks on an estate each exercise RTM, there may be scope for collective control of estate charges — but this is untested territory.
From experience
I led the RTM process at my own building — a 150+ unit block in south London. It took 18 months from the first leaseholder conversation to the managing agent starting work under the RTM company. The legal process itself was the straightforward part. The real work was building consensus among leaseholders: explaining what RTM meant, addressing concerns, and maintaining momentum over a long period.
The single biggest factor in our success was reaching over 90% leaseholder support before making the formal claim. That level of backing meant the freeholder didn't dispute the notice, the transition was smooth, and the new managing agent had a clear mandate from the community.
If I could give one piece of advice to anyone considering RTM: start with the people, not the paperwork.
Common questions
How much does RTM cost?
The main costs are company formation (under £100), solicitor fees for the claim process (typically £2,000–£5,000 depending on building size), and potentially tribunal fees if the claim is disputed. Since March 2025, the freeholder's costs are generally no longer recoverable from leaseholders.
Can shared ownership leaseholders participate?
Yes. Shared ownership leaseholders are qualifying tenants for RTM purposes, confirmed by Avon Ground Rents Ltd v Child [2023].
Does RTM affect my lease?
No. RTM “silently” overrides the management provisions in your lease without changing the lease document itself. Your lease continues unchanged — only the entity responsible for management changes.
Can the freeholder block RTM?
Only on limited legal grounds (for example, if the eligibility conditions aren't met or the process wasn't followed correctly). They cannot block RTM simply because they disagree with it.
Do we have to manage the building ourselves?
No. Most RTM companies appoint a professional managing agent. RTM gives you the right to choose the agent — it doesn't require self-management.
Can RTM be reversed?
In theory, the RTM company can be wound up or the right can be lost if certain conditions apply (for example, the appointment of a tribunal-appointed manager under s.24). In practice, once RTM is established, it very rarely reverts.
Next steps
If you're unsure whether your building needs RTM — or whether you might already have the authority to change agent without it — we can help you work that out. Our free viability check looks at your building's legal structure and tells you the fastest route to a better managing agent.
Check if your building qualifiesRelated guides
- •Can I Change My Managing Agent Without Right to Manage? — for buildings with an RMC or existing RTM company
- •Can Leaseholders on Mixed Estates Change Their Managing Agent? — for mixed freehold and leasehold developments
- •How Can I Reduce My Leasehold Service Charges? — practical steps from quick wins to structural change
- •How Do I Complain About My Managing Agent? — the formal complaints process and when to move beyond it
This guide is for general information only and does not constitute legal advice. For advice specific to your lease and building, consult a solicitor specialising in leasehold property.