Right to Manage (RTM) Journey

1. Establish the RTM Company

  • Legal Requirements:

    • Ensure eligibility under the Commonhold and Leasehold Reform Act 2002.

    • The building must be self-contained, contain at least two flats, and at least 50% of leaseholders must participate.

    • Serve a Notice of Invitation to Participate to all qualifying leaseholders.

    • Serve the Notice of Claim to the current freeholder.

    • Manage any counterclaims and follow legal procedures to gain control.

2. Selecting a Management Company

  • Conduct a full and transparent tender process.

  • Request proposals from multiple managing agents with relevant experience.

  • Evaluate based on:

    • Cost-effectiveness

    • Service levels

    • Experience with similar properties

  • Compliance with industry standards

  • Hold leaseholder meetings to discuss and approve the preferred managing agent.

3. Budget Review by the New Managing Agent

  • Upon appointment, the managing agent will undertake a full budget review.

  • Key review areas:

    • Service charge expenditure

    • Contract efficiency

    • Potential savings in all areas of the budget

    • Areas for improvement and cost reductions

    • Condition surveys of M&E (lifts, boilers, pumps etc)

  • Findings presented to the RTM Board, with recommendations for financial sustainability.

4. Establish a Long-Term Major Works Plan

  • Identify major works (any project requiring individual leaseholder contributions exceeding £250).

  • Develop a 10-year maintenance plan covering:

    • Structural repairs (roof, façade, balconies, etc.)

    • Communal area refurbishments

    • Compliance-related improvements (fire safety, accessibility, etc.)

    • Energy efficiency upgrades

  • Engage leaseholders in consultation and planning.

5. Capital Expenditure Plan (If Required)

  • If significant mechanical and electrical (M&E) works are needed:

    • Appoint a chartered building surveyor.

    • Engage an M&E consultant to assess all mechanical and electrical installations.

    • Review essential systems, including:

      • Lifts

      • Heating and ventilation systems

      • Water supply infrastructure

      • Electrical wiring and lighting

  • Establish a phased capital expenditure strategy to align with service charge budgets.

6. Ongoing Management and Review

  • Regular RTM Board meetings to review performance.

  • Annual leaseholder engagement to discuss budgets and major works.

  • Continuous assessment of management efficiency and property needs.

This structured approach ensures a smooth transition to RTM, financial prudence, and long-term property sustainability.