Right to Manage Company

Tenants who are not happy with how their Landlord is managing their building are potentially able to collectively force the Landlord to transfer their management functions to a special company set up by the tenants under the Commonhold and Leasehold Reform Act (CLRA) 2002 and subsequent regulations. This kind of company is known as a Right to Manage (RTM) Company. There is no need to prove wrongdoing or mismanagement on the part of the Landlord or current Management Company in order to force the transfer of their management functions.

The term ‘management functions’ includes but is not limited to:

• the collection and management of the service charge;
• maintenance and repair of the structure of the building;
• maintenance and repair of communal areas;
• insuring the building; and
• other day to day management functions.

The RTM provisions will only apply if the following conditions are met:

• the flats are contained in a self-contained building or a self-contained part of the building;
• the premises contain two or more flats held by qualifying tenants; and
• the total number of flats held by qualifying tenants makes up at least two thirds of the total number of flats contained in the building (or self-contained part of the building).

In order for a Tenant of a flat to be a qualifying tenant they must own the flat under a long lease i.e. one that was granted for a term greater than 21 years.

If the tenants meet the above criteria, they have the right to request the transfer of the management functions of their landlord to a RTM Company.

Our Bespoke and Commercial Property team, headed up by Jo Pusey, are able to advise on your eligibility to force the management functions to a RTM Company and draft and serve the appropriate notices. Our Corporate Department are able to assist you with the formation of the RTM Company.

For further advice and assistance please contact our Commercial Property team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk