What is Right To Manage?

Meaning & Definition

Right To Manage

The “Right to Manage” (RTM) is a legal provision in some countries, notably the United Kingdom, that allows leaseholders (residential or commercial property owners) to take control of the management of their property or building from the landlord or property management company. RTM gives leaseholders the right to collectively manage and make decisions regarding the maintenance, upkeep, and service charges of their property without the landlord’s direct involvement.

Key points regarding the Right to Manage include:

• Leasehold Properties

RTM typically applies to leasehold properties, where the occupants own the right to live or work in the property for a specified period (the lease) but do not own the property itself.

• Collective Decision-Making

To exercise the Right to Manage, leaseholders must form a Right to Manage Company (RTM Company) or a similar legal entity. The company is responsible for making collective decisions regarding property management.

• Eligibility

Not all leaseholders are eligible for the Right to Manage. Eligibility criteria may include the property being in good condition, a certain percentage of leaseholders agreeing to participate, and other requirements as per local legislation.

• Transfer of Responsibilities

Once RTM is successfully claimed, the leaseholders and the RTM Company take over various responsibilities, including setting service charges, appointing property managers, making maintenance decisions, and handling the day-to-day management of the property.

• Management Companies

RTM does not eliminate the need for a property management company or agent. Instead, it allows leaseholders to choose their own management company or operate the management in-house through the RTM Company.

• Continuity of Services

Service continuity is typically a critical consideration during the transition. Leaseholders aim to ensure that services like security, maintenance, cleaning, and utilities continue without disruptions.

• Dispute Resolution

Disputes between leaseholders and landlords or RTM Companies may be resolved through legal processes or by following dispute resolution procedures outlined in local legislation.

The Right to Manage is designed to empower leaseholders, allowing them to have more control over the management of their properties. This can be particularly valuable if they are dissatisfied with the services provided by their landlord or management company. RTM can lead to cost savings, more transparent management practices, and a better quality of service, depending on the effectiveness of the leaseholders’ management decisions.

It’s important to note that the specific procedures and requirements for exercising the Right to Manage can vary by jurisdiction, so leaseholders interested in pursuing this option should consult with legal professionals or authorities to ensure they meet all the necessary conditions and legal steps.