What Is Right to Manage? A Guide for Leaseholders
Right to manage lets leaseholders take control of their building without buying the freehold. Here is what it means, who qualifies, and what changes after takeover.
If you own a flat on a long lease and feel like decisions about your building are made without you, the right to manage may be the most useful legal tool you have never heard of. It lets qualifying leaseholders take over the management of their block from the freeholder, without buying the freehold and without needing the freeholder's permission. This guide explains what it is, who can use it, and what life looks like after takeover. For many small blocks, running the building yourself after RTM is more straightforward than it appears, and you do not need to be a property professional to do it well if you put a clear system in place.
What is right to manage?
Right to manage (RTM) is a statutory right introduced by the Commonhold and Leasehold Reform Act 2002. It gives leaseholders in qualifying blocks the power to take over management of their building by forming a right to manage company. Once the process is complete, the RTM company steps into the role previously held by the freeholder or their managing agent. It arranges insurance, organises maintenance, collects service charges, and keeps the building compliant.
Crucially, RTM is a no-fault right. You do not need to prove the freeholder or managing agent has done anything wrong. You simply need to meet the eligibility criteria and follow the correct legal process. The freeholder cannot block a valid RTM claim. Once you are past acquisition, self-management is a legitimate option for most small blocks: many leaseholders who take control find transparency improves and day-to-day costs fall compared with defaulting to a managing agent, though others prefer professional management for capacity or complexity and that choice is valid too.
Who qualifies for right to manage?
Not every block qualifies. To be eligible, your building must meet all of the following conditions.
The building must contain at least two flats. At least two thirds of the flats must be held on long leases (generally over 21 years). At least half of the qualifying leaseholders must participate in the RTM company. The building must be predominantly residential, meaning no more than 25 percent of the floor area can be commercial space.
There are some exceptions. Buildings with a resident landlord in a small block may not qualify. If you are unsure, a solicitor or RTM specialist can confirm eligibility quickly and it is worth checking before investing time in organising leaseholders.
How right to manage differs from share of freehold
People often confuse right to manage with share of freehold. They are related but different. With share of freehold, leaseholders collectively buy the freehold title to the building. With RTM, you take over management but the freeholder keeps the freehold. You do not own the building, you manage it.
That distinction matters in practice. RTM is generally faster and cheaper to acquire than share of freehold, because there is no purchase price for the freehold itself. But share of freehold gives broader control, including the ability to grant lease extensions on your own terms. For many blocks, RTM is the realistic first step, with collective enfranchisement considered later if residents want to go further. Our share of freehold vs leasehold guide covers that comparison in more detail.
What changes after RTM takeover?
Once the right to manage company takes over, it assumes responsibility for everything the freeholder or their agent previously handled. That includes arranging buildings insurance, commissioning repairs and maintenance, running the service charge account, holding a sinking fund, and ensuring the building meets its fire safety and health and safety obligations.
Directors of the RTM company need to stay on top of these tasks. A managing agent can take the load if you want one, but most small blocks can be self-managed with the right system in place — for example block management software that keeps service charges, documents, and compliance work together so volunteer directors stay in control. For the legal steps of acquiring RTM, see our right to manage process guide.
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.