About Right to Manage

The building must meet certain criteria and a minimum number of leaseholders is required to take part:

  • at least two-thirds of the flats must be let to ‘qualifying tenants’*;
  • it can be part-commercial but the non-residential part must not exceed 25% of the total floor area.

RTM does not apply where the premises fall within the Resident Landlord Exemption. This exemption would require the following:

  • The premises must be other than a purpose-built block;
  • They must comprise not more than four flats;
  • One of the flats must be occupied by the freeholder or an adult member of their family as their only or principal home for the last twelve months.

*A ‘qualifying tenant’ is a leaseholder whose lease was originally granted for an original term of more than 21 years. There is no requirement for any past or present residence in the flats, nor any limit on the number of flats which can be owned by one person.

Right to Manage may only be exercised by a Right To Manage company and the members of the RTM company must comprise a sufficient number of qualifying tenants. The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building.

The right relates to a building, so, in an estate of separate blocks, each block would need to qualify separately and an individual RTM notice served. In the case of an estate of flats under the same management, it would be sensible to take over the management of the whole estate, but this would have to be accomplished by application in respect of each separate block.

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