Do you feel frustrated with how your building is being managed? For many leaseholders, dissatisfaction with landlords, management companies, or managing agents is a common challenge, often resulting from inflated costs, poor service quality, and a lack of transparency.
However, there may be a solution available to you — the Right to Manage (RTM). The Right to Manage empowers leaseholders to take control of the management of their building, without needing to buy the freehold outright or even seek the landlord’s agreement.
In this blog, we evaluate the Right to Manage pros and cons to help you to determine whether it is the right option for you.
Right to Manage (RTM) Meaning Explained
Introduced in 2002 as part of the Commonhold and Leasehold Reform Act, the Right to Manage (RTM) is a legal process which allows unhappy leaseholders to form their own Right to Manage company. This company will assume responsibility for managing their building, without needing to purchase the freehold — or request consent from the landlord.
What does RTM mean for leaseholders? For those unhappy with how their landlord/the freeholder or management company is managing their building, the Right to Manage means greater control in relation to how their building is being run on a day-to-day basis.
A Right to Manage company will be responsible for things like:
- The collection and management of the building’s service charges
- Upkeep of communal areas and the building
- Arranging appropriate insurance
- Responding to complaints from other leaseholders regarding the building
In order to qualify for the Right to Manage, leaseholders do not need to prove that the building has been poorly managed. However, it must meet certain criteria:
- It must be a self contained building or self contained part of a building
- The block must contain at least two flats
- At least two-thirds of the flats must be let to leaseholders with leases granted for terms exceeding 21 years
In addition, at least 50% of the leaseholders in the building must participate in the Right to Manage process for it to go ahead.
For more information about the Right to Manage for leasehold property tenants, view our dedicated guide.
Leaseholders’ Right to Manage Pros and Cons
The Right to Manage offers a unique opportunity to take control of how your building is managed, but it is not without its challenges and possible complications. By understanding the primary Right to Manage pros and cons, you can make an informed decision regarding whether it is the right choice for you.
Right to Manage Leasehold Property Advantages
The primary advantages of acquiring the Right to Manage of a leasehold property revolves around taking control of your own services. It can help you save money, increase flexibility, and ensure that your building is working for you.
Some of the major advantages of the Right to Manage for a leasehold property include:
1. Control Over Management
Through the Right to Manage, leaseholders can gain direct control over how their building will be managed going forward. This will include the ability to vet and appoint managing agents, overseeing maintenance schedules, and ensuring service charges are utilised appropriately to benefit residents, in accordance with the terms of the lease.
2. Improved Service Quality
The most common causes for leaseholders to pursue the Right toManage include dissatisfaction with the service provision , or lack of it and inflated service charges.
Leaseholders can appoint their own agents and are able to take action if the service standards do not meet their expectations.
3. Transparency in Costs
Leaseholders may be particularly frustrated by increasing monthly costs, without any signs of improvement in the building. Right to Manage can eliminate any confusion regarding how building expenditure is managed and utilised.
Leaseholders will gain the ability to approve budgets and ensure all funds are spent to the benefit of the building and its occupants, according to the terms of the lease.
4. No Need to Prove Mismanagement
As highlighted above, unlike other options available, the Right to Manage does not require leaseholders to demonstrate that the landlord or management company failed in their duties.
It is a statutory process and there are limited grounds on which a landlord or manager can oppose the claim.
5. A Premium Is Not Payable
Unlike collective enfranchisement, which is the ability of leaseholders to buy the freehold of the building, the landlord is not entitled to a premium if leaseholders exercise their Right to Manage.
6. Fairness and Equality
Although disagreements can sometimes arise, the inclusive nature of the Right to Manage model ensures that leaseholders can actively contribute to the process. The structure promotes collaboration and allows leaseholders to work toward the best outcomes for the property.
7. Increased Leaseholder Engagement
Leaseholders who have exercised the Right to Manage often report that the process fosters a greater sense of community within the building. This is a result of them feeling that they are working together with neighbours in order to improve their collective living environment and ensuring that the value of their property is protected.
RTM Cons: What are the Disadvantages of Right to Manage?
While the Right to Manage empowers leaseholders, it does come with challenges. Forming and running a Right to Manage company requires significant time and effort, as well as expertise. Additionally, disputes with fellow leaseholders can arise. Weighing up the potential drawbacks is essential before proceeding.
Some of the disadvantages of the Right to Manage are:
1. Responsibility for Management
While gaining control can be empowering, it also comes with significant responsibility. Leaseholders looking to go down the Right to Manage route must be prepared to dedicate their time to ensuring that the building is properly managed, in accordance with the lease and statute. This can be a significant consideration in relation to the management of high rise buildings and fire safety.
It also involves recovering service charge arrears from leaseholders, who are potentially your neighbours.
There is often benefit in retaining the services of a specialist managing agent.
2. Potential for Disputes
It’s possible for tension to arise among leaseholders when discussing key management decisions. Leaseholders may have differing priorities or views in relation to decision making. It can be difficult to manage conflicts between leaseholders..
3. Landlord involvement
Obtaining the Right to Manage does not remove the landlord from the situation entirely, despite them generally not being able to formally object to its formation.
They have the right to become a member of the company and vote. The landlord also retains the right to take action for breaches of covenant and forfeit a lease.
4. Costs
Although a premium is not payable, the landlord is entitled to recover certain costs incurred in connection with the Right to Manage process.
Exercising the Right to Manage is an involved process. It is therefore suggested that you take specialist advice in order to ensure that it is implemented correctly. Keep in mind that there are costs associated with this process that should be considered.
Additionally, as a result of the reforms implemented by the Government on 3 March 2025, the landlord’s ability to recover costs from leaseholders is now limited. The landlord may however, attempt to oppose the Right to Manage claim, regardless of whether there are any genuine grounds, in which case an application to the Tribunal may be required. This can also increase costs for leaseholders.
Is the Right to Manage the Best Option for Your Leasehold Property?
The decision to pursue the Right to Manage for a leasehold property depends on the specific circumstances of the building and its residents. If you’re considering the Right to Manage process, it can be a highly beneficial option for any leaseholders looking to improve service provision, management, and transparency without the complexity and cost of buying the freehold.
However, it requires commitment, collaboration, and a willingness to take on greater responsibilities going forward. When weighing up the Right to Manage pros and cons, it’s important to carefully evaluate both the immediate and long-term implications for your building and its residents. For some, the Right to Manage could be a great way to improve management, but for others, the ongoing obligations could feel like they outweigh the benefits. In either case, understanding the RTM meaning, and what it could entail for your leasehold property is key to making more informed decisions.
Acquiring the Right to Manage With WHN Solicitors
At WHN Solicitors, we have extensive experience assisting leaseholders with Right to Manage claims. We ensure that the process is handled efficiently and cost effectively. Our team is dedicated to providing clear advice and helping you make informed decisions about whether pursuing the Right to Manage is the best option for your leasehold property.
We understand that the process of managing a leasehold property can sound complex. It is therefore essential to carefully consider the Right to Manage pros and cons before making any decisions. Whether you are aiming to improve service provision, increase transparency, or take control of your building’s management, we provide expert guidance every step of the way, ensuring you consider all the relevant factors for an informed choice.
For more information on applying for the Right to Manage or any other long leasehold dispute matter please contact Eleanor Longworth on 0161 761 8082 or email: eleanor.longworth@whnsolicitors.co.uk.
