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A statutory right for qualifying leaseholders to take control of their building's management, and Pearl can guide you through every step.
The Right to Manage (RTM) is a statutory provision under the Commonhold and Leasehold Reform Act 2002. It gives qualifying leaseholders the legal right to take over the management of their building by forming an RTM company, without having to prove any fault on the part of the landlord or current managing agent.
Many leaseholders are unaware this right exists, or assume the process is more complicated than it actually is. In practice, most blocks of flats with long leases qualify, and the process typically takes three to six months from forming the RTM company to the management transfer date.
Pearl Property Partners provides guidance through every stage of the RTM process. We help leaseholders assess eligibility, form the RTM company, serve the required notices, and manage the transition once the right has been acquired. Once your RTM company is established, we provide the full range of block management services as your appointed managing agent.
The result is a building managed by an agent chosen by its residents, accountable directly to the RTM company's board of directors, and delivering a service tailored to the specific needs of your block.
A structured process with clear steps, from eligibility assessment through to the management transfer date and beyond.
We assess whether your block qualifies for RTM. Most blocks of flats with long leases qualify. The building must contain at least two flats held by qualifying tenants, and at least two-thirds of the flats must be held by qualifying tenants. There are limited exclusions, such as buildings where more than 25% of the internal floor area is commercial.
We help you set up the RTM company, a company limited by guarantee, and recruit the required number of participating leaseholders as members. The company must be properly constituted with articles of association that comply with the relevant regulations.
We guide you through serving the formal RTM claim notice on the landlord. This notice must be served correctly and within the required timescales. The landlord then has a period in which to serve a counter-notice, either accepting the claim or disputing it.
If the landlord disputes the claim, the matter can be referred to the First-tier Tribunal (Property Chamber) for determination. If no counter-notice is served, or the claim is accepted, management responsibilities transfer on the date specified in the claim notice.
Once the RTM is acquired, the RTM company assumes management responsibilities. Pearl is appointed as your managing agent and we handle the handover from the outgoing agent, set up systems, and begin delivering the full range of block management services on behalf of your RTM company.
Acquiring the Right to Manage is only the first step. Once your RTM company is established, it needs a managing agent who can deliver the service your block deserves, and who understands the specific dynamics of working with an RTM board.
Pearl provides the full range of block management services to RTM companies, from day-to-day property management and service charge administration through to compliance, insurance, and major works. Your dedicated Partner becomes the operational arm of your RTM company, attending board meetings, implementing decisions, and providing the professional support directors need to manage their building effectively.
Every service from day-to-day operations to compliance and major works
Meeting attendance, minute-taking, and implementation of board decisions
Comprehensive reports so directors always know where things stand
Online access for all residents to submit requests and view information
Most blocks of flats with long leases qualify. The building must contain at least two flats held by qualifying tenants, and at least two-thirds of the flats must be held by qualifying tenants. There are some exclusions, for example, if more than 25% of the building's internal floor area is used for non-residential purposes. We can assess your block's eligibility during a free consultation.
No. The Right to Manage is a no-fault right. Qualifying leaseholders do not need to demonstrate any failure or fault on the part of the landlord or existing managing agent. The right exists purely by virtue of meeting the statutory eligibility criteria.
The process typically takes three to six months from forming the RTM company to the management transfer date. Timescales can vary depending on whether the landlord serves a counter-notice disputing the claim, which may require a determination by the First-tier Tribunal.
The main costs are RTM company formation, the claim notice service, and any legal fees if the landlord disputes the claim and the matter proceeds to the Tribunal. Costs vary depending on the complexity of the case and the size of the block. We can provide guidance on likely costs during a free consultation.
The RTM company appoints a managing agent, in this case, Pearl, and we handle the handover from the outgoing agent. This includes transferring funds, documents, contracts, and building information. We set up portal access for all residents, arrange an introductory meeting, and begin delivering management services from the transfer date. Directors retain oversight and decision-making authority, with Pearl handling the day-to-day operations.
