Frequently Asked Questions

A residents management company (RMC) is a company set up to manage a residential block on behalf of the leaseholders who own flats within it. Unlike a managing agent, an RMC is controlled by the residents themselves, giving flat owners direct oversight of how their building is run and how service charge money is spent.

A Right to Manage (RTM) company is formed specifically to take over management from a freeholder or managing agent under the Commonhold and Leasehold Reform Act 2002. A residents management company (RMC) is typically set up as part of the original lease structure when a block is purchased. Both give residents control over their building, but they are created through different legal routes.

RTM directors are responsible for managing the day to day running of their building, including setting and collecting service charges, arranging buildings insurance, maintaining common areas, ensuring fire safety compliance and keeping accurate financial records. Directors are volunteers in most cases, which is why having the right tools in place makes a significant difference.

Yes. Many RTM companies and share of freehold owners successfully self-manage their building without appointing a professional managing agent. Self-management gives residents full control over costs and decisions. Software like Freehold.Pro is designed specifically to make this practical for volunteer directors without a property management background.

A service charge is a contribution collected from leaseholders to cover the cost of maintaining and running a building, including insurance, repairs, cleaning and compliance. In a self-managed block, the RTM company or RMC directors set the service charge budget based on anticipated costs for the year.

A service charge budget is a forecast of the costs expected to be incurred in running a building over the coming year. It is prepared by the directors or managing agent and shared with leaseholders ahead of the service charge period. Transparent budgeting is one of the most important responsibilities of any self-managing block.

To set up an RTM company you need at least 50 per cent of qualifying leaseholders in your block to participate. The process involves incorporating a private company limited by guarantee, serving notice on your freeholder and waiting for the acquisition date. The process typically takes five to six months. Our blog has a full step by step guide to the RTM process.

Section 20 is a legal requirement that obliges landlords and RTM companies to consult leaseholders before carrying out any works or entering into a long term contract where the cost to any individual leaseholder exceeds £250. Failing to follow the correct procedure can limit the amount you can recover through the service charge.

Freehold.Pro is currently free to access for leaseholders and RTM companies in early access. We are building the platform with direct input from self-managing residents to make sure it solves real problems before we introduce paid plans.

Yes, Freehold.Pro is built specifically for small residential blocks of three to fifty flats. It is designed for volunteer directors who want to manage their building properly without needing a property management background or paying management fees they cannot scrutinise.

Leasehold means you own your flat for a fixed term under a lease but do not own the building or land it sits on. Freehold means outright ownership of a property and the land it stands on. Most flat owners in England and Wales are leaseholders, which is why understanding your rights as a leaseholder matters.

Share of freehold means that the leaseholders in a block jointly own the freehold of the building, usually through a company. This gives residents more control over how the building is managed and removes the conflict of interest that can exist between a leaseholder and an external freeholder.