The Meaning of RTM (Right to Manage)

At Urbanlife, we often get asked “What does RTM stand for, and what does it mean?” The property management industry may presume leaseholders understand what the acronym means, however this is often not the case. Without understanding that meaning and the subsequent legal right it abbreviates, how do leaseholders know it even exists let alone what it can do for them and the advantages Right to Manage can offer?

R.T.M – “RIGHT-TO-MANAGE”

RTM Stands for ‘Right-to-Manage’. It refers to the legal right granted to leaseholders in the UK under the Commonhold and Leasehold Reform Act 2002; it’s a no fault right meaning that if certain criteria is met you can acquire the right to appoint your own managing agent or even self-manage without contest from the landlord; it also provides you the right to choose your own insurance broker and policy.

RTM claims have grown exponentially in the last 5 years as managing agents fail to cope with the growing knowledge and awareness of Leaseholders. Urbanlife will take you through the RTM process for free*.

Why do we do it for Free?

Because we can! – Firstly, we believe it is your right to choose your own agent. We have the luxury of a legal team that specialise in Right to Manage applications which makes the free part possible. In total honesty, we hope that by taking you through the process and working with you in the initial year of your RTM life, you will see not all managing agents are equal and that we really do set you as our priority and do everything we can to support, empower and inform you – making living or owning a leasehold property a rewarding investment… If you feel we don’t, there are no long-term contracts or commitments and you can walk away without penalty.

A right to manage application is actually very easy. Once we have completed a qualification assessment for your building and 50% of the qualifying leaseholders have agreed to proceed it’s just a case of following these steps.

  • We register an RTM company at Companies House for you. This can be formed within 48 hours.
  • We serve a Section 78 'Notice of Invitation to Participate'– this invites those non participating qualifying leaseholders to participate in the claim. These leaseholders have 14 days to respond.
  • We serve a Section 79 'Notice of Claim to Acquire’ – This is served on the current registered landlord. The landlord has 1 month to respond with a counter notice either admitting or denying the claim.  The landlord only has limited reasons to deny the claim.  If the claim is admitted the right to manage will be acquired approximately 3 months thereafter.
  • If the Claim is admitted, Section 92, 93 and 94 Notices are then served.  The current managing agent must then provide us with your current accounting information, formal documentation and to place any existing contractors and suppliers on notice. They have to provide this information within a reasonable period of time.

NOTE: If the landlord challenges the claim, it can take approximately 3-4 months for the First-Tier Tribunal to conclude the application.

Urbanlife was created by property professionals who wanted to make a difference within an industry in desperate need of reform. We set out to support, inform and empower leaseholders and our RTM service is key to that goal.

If you would like any more information on our Free RTM service* Please visit our website www.urbanlifepm.co.uk where you can read about it in more detail as well as submit an enquiry form OR speak to any one of the team on 01268 661838.