The Right to Manage Process: A Step-by-Step Guide for Leaseholders

The right to manage (RTM) lets qualifying leaseholders take over the management of their block without buying the freehold. It's a significant step that can improve accountability and control, but it only works if the process is done correctly. For many small blocks, running the building after RTM is a practical option — leaseholders who take control of their building typically find transparency improves and costs fall compared with staying dependent on a managing agent by default, while others still prefer professional management and that is a legitimate choice. This guide explains the right to manage process in clear stages and highlights where many schemes stumble.

 

What Is the Right to Manage and Who Qualifies?

 

The right to manage is a statutory right. If enough leaseholders in a qualifying block want to manage the building themselves, they can form a right to manage company and take over the management functions from the freeholder. You don't buy the freehold; you take over the job of managing it. Not all blocks qualify. There are rules about the number of flats, proportion of residential use, and other criteria. A specialist or lawyer can confirm whether your block is eligible.

 

Understanding leaseholder right to manage is the first step. Once you know you qualify, you can plan the process and get leaseholders on board.

 

Stage 1: Check Eligibility and Get Leaseholders On Board

 

Before you serve any notices, confirm that your block meets the legal tests for the right to manage. Then work out how many leaseholders you need to participate. You'll need a minimum proportion (by number of flats) to join the right to manage company. This is often the trickiest part: getting enough people to commit time and, if needed, money. Communicate clearly what RTM means, what might change (e.g. who you appoint as managing agent), and what won't (e.g. you still have leases and pay service charges).

 

Stage 2: Form the Right to Manage Company and Prepare the Notice

 

You need to set up a company that will become the RTM company. It must be set up in a specific way under the legislation. Then you prepare and serve the formal right to manage application (the claim notice) on the freeholder. The notice must meet strict requirements. Wrong wording or wrong service can delay or invalidate the claim. Many groups use a solicitor or a specialist RTM agent at this stage to avoid costly mistakes.

 

Stage 3: Deadlines, Counter-Notices, and Disputes

 

Once the notice is served, the freeholder has a set time to respond. They may accept, or they may dispute eligibility or the validity of the notice. If they dispute, the matter can go to tribunal. Throughout the right to manage process, keep to the statutory deadlines and keep a clear record of what was sent and when. Missing a deadline can set you back months or force you to start again.

 

Stage 4: Handover and What Changes (and What Doesn't)

 

When the RTM company takes over, it steps into the freeholder's management role. It arranges insurance, contracts, maintenance, and service charge collection. The freeholder doesn't disappear. They still own the freehold, but they no longer manage. Leaseholders still have the same leases and the same obligation to pay service charges; the difference is who collects the money and makes the decisions.

 

After handover, the right to manage company needs to function like a proper management body: directors, meetings, accounts, and a clear way to handle the workload. Most small blocks can be self-managed with the right system in place — the complexity is often overstated, and a dedicated block management system can make compliance and day-to-day running straightforward for volunteer directors. If you prefer not to take that on, a managing agent or mixed arrangement remains a valid option.

 

When to Get Specialist Right to Manage Agents or Legal Advice

 

You can run the right to manage process yourself if you're confident with company formation, notices, and deadlines. But many leaseholder groups use a solicitor for the claim and notices, and some use RTM specialists who guide you from start to handover. If your block is large, the freeholder is hostile, or you're unsure about eligibility or procedure, getting advice early is usually cheaper than fixing errors later. The same applies after acquisition: plan how you will run the block — many RTM companies use good block management software so volunteer directors stay in control without drowning in admin, while others appoint a managing agent or combine both; choose what fits your block.

 

Treat the right to manage as a project with clear phases and milestones. Get the legal steps right, keep leaseholders informed, and plan for life after handover (our leasehold management in practice guide can help). Done well, RTM can give your block the control and transparency you've been looking for.

 

How Freehold.Pro helps

 

Once your RTM company has taken over, Freehold.Pro gives directors the software to manage service charges, compliance, and communications without drowning in admin.

 

Freehold.Pro is block management software built for small residential blocks. Track service charges, store documents, log maintenance, and stay compliant — all in one place. Try it free, no contract required.