The right to manage lets qualifying leaseholders take over the management of their block without buying the freehold. It is a significant step that can improve accountability and control — but it only works if the process is done correctly.

For many small blocks, running the building after RTM is a practical option. Leaseholders who take control typically find transparency improves and costs fall. This guide explains the right to manage process in clear stages and highlights where most schemes stumble.

What Is the Right to Manage and Who Qualifies?

The right to manage is a statutory right. Qualifying leaseholders can form a right to manage company and take over the management functions from the freeholder — without buying the freehold and without needing the freeholder's permission.

Not all blocks qualify. There are rules about the number of flats, proportion of residential use, and other criteria. A specialist or solicitor can confirm eligibility quickly, and it is worth checking before investing time in organising leaseholders.

Stage 1: Check Eligibility and Get Leaseholders On Board

Before you serve any notices, confirm your block meets the legal tests. Then work out how many leaseholders you need to participate — you will need a minimum proportion by number of flats to join the right to manage company.

This is often the trickiest part: getting enough people to commit time and, if needed, money. Communicate clearly what RTM means, what might change, and what will not.

Stage 2: Form the Right to Manage Company and Prepare the Notice

You need to set up a company in a specific way under the legislation. Then prepare and serve the formal right to manage claim notice on the freeholder. The notice must meet strict requirements — wrong wording or wrong service can delay or invalidate the claim.

Many groups use a solicitor or RTM specialist at this stage to avoid costly mistakes. If your block is straightforward and you are confident with the process, you can handle it yourself.

Stage 3: Deadlines, Counter-Notices, and Disputes

Once the notice is served, the freeholder has a set time to respond. They may accept, or they may dispute eligibility or the validity of the notice. If they dispute, the matter can go to tribunal.

Keep to the statutory deadlines throughout and maintain a clear record of what was sent and when. Missing a deadline can set you back months or force you to start again.

Stage 4: Handover and What Changes

When the RTM company takes over, it steps into the freeholder's management role. It arranges insurance, contracts, maintenance, and service charge collection. The freeholder still owns the freehold — they just no longer manage.

After handover, the right to manage company needs to function like a proper management body: directors, meetings, accounts, and a clear way to handle the workload. Most small blocks can be self-managed with the right system in place. Our leasehold management in practice guide can help you plan for life after handover.

When to Get Specialist Advice

You can run the right to manage process yourself if you are confident with company formation, notices, and deadlines. But many groups use a solicitor for the claim and a specialist to guide them from start to handover.

If your block is large, the freeholder is hostile, or you are unsure about eligibility, getting advice early is usually cheaper than fixing errors later. Plan the RTM as a project with clear phases and milestones — done well, it can give your block the control and transparency you have been looking for.

How Freehold.Pro Helps

Once your RTM company has taken over, Freehold.Pro gives directors the software to manage service charges, compliance, and communications without drowning in admin.

Try Freehold.Pro free, no contract required. Get started today.