Right to Manage vs Staying with Your Freeholder: Which Is Better?

If you’re unhappy with how your building is managed, you’ve probably come across the term Right to Manage (RTM). Many leaseholders ask whether it’s better to take over the management of their building or continue with a freeholder-appointed managing agent.

The answer depends on your building, the commitment of the leaseholders and the quality of the current management. While Right to Manage gives leaseholders greater control, it also comes with additional responsibilities that shouldn’t be overlooked.

In this guide, we’ll explain the differences between staying with your freeholder and exercising your Right to Manage, helping you decide which option is best for your development.

Thinking about exercising your Right to Manage? The team at Your Home Property Management can guide you through the process and provide professional management support. Contact us today or book a free consultation to discuss your building.

What Is Right to Manage?

Right to Manage is a legal right that allows qualifying leaseholders in England and Wales to take over the management of their building without having to prove that the freeholder has done anything wrong. Instead of the freeholder appointing a managing agent, leaseholders form an RTM company which becomes responsible for managing the property.

The freeholder continues to own the building, but the day-to-day management responsibilities transfer to the RTM company.

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What Does the Freeholder Do?

When you remain under freeholder management, the freeholder is responsible for appointing a managing agent to oversee the building. Their responsibilities often include:

• Organising maintenance and repairs
• Collecting service charges
• Managing contractors
• Arranging building insurance
• Meeting legal compliance requirements
• Managing health and safety obligations
• Preparing annual budgets

The quality of management largely depends on the managing agent appointed by the freeholder.

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What Is an RTM Company?

An RTM company is a legal company formed by qualifying leaseholders to manage the building after exercising the Right to Manage. The company becomes responsible for:

• Building maintenance
• Service charge budgeting
• Contractor appointments
• Resident communication
• Compliance
• Financial management
• Insurance administration

Many RTM companies choose to appoint an experienced block management company to carry out these duties professionally while retaining control over decisions.

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Right to Manage vs Staying with Your Freeholder

Right to Manage	Staying with Your Freeholder
Leaseholders control management decisions	Freeholder controls management
Greater transparency	Depends on current managing agent
Choice of managing agent	Freeholder appoints the managing agent
More involvement from residents	Less responsibility for leaseholders
Better control over budgets	Limited influence over spending
Can improve communication	Communication varies between agents

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Benefits of Right to Manage

Many leaseholders choose RTM because it offers greater control over how their building is managed. Key benefits include:

Greater Control

Leaseholders decide how the building is managed rather than relying on decisions made by the freeholder.

Choice of Managing Agent

The RTM company can appoint a managing agent that better suits the needs of the building.

Improved Communication

Residents often experience quicker responses because management decisions are made closer to the community.

Better Financial Oversight

RTM companies have greater visibility of budgets, expenditure and service charges.

Tailored Maintenance Plans

Maintenance priorities can reflect the needs of residents rather than a one-size-fits-all approach.

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Responsibilities of an RTM Company

While RTM offers greater control, it also brings legal and financial responsibilities.

These include:

• Managing service charge funds
• Maintaining accurate financial records
• Arranging insurance
• Meeting health and safety obligations
• Managing repairs
• Appointing contractors
• Ensuring legal compliance
• Communicating with leaseholders

Many RTM companies appoint professional managing agents because these responsibilities can become time-consuming.

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When Staying with Your Freeholder May Be the Better Option

Right to Manage isn’t always the best solution.

Remaining with your freeholder may make sense if:

• Your current managing agent provides excellent service.
• Maintenance issues are resolved promptly.
• Service charges are reasonable and transparent.
• Residents are generally satisfied.
• Leaseholders do not have the time to participate in management decisions.

If your building is already well managed, changing the management structure may not deliver significant benefits.

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Signs Your Building Could Benefit from Right to Manage

You may wish to consider RTM if you regularly experience:

• Poor communication
• Delayed repairs
• Rising service charges without explanation
• Lack of financial transparency
• Difficulty contacting your managing agent
• Maintenance issues that remain unresolved
• Limited consultation with leaseholders

These issues often encourage residents to seek greater control over how their building is managed.

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Can You Appoint a Professional Managing Agent After RTM?

Yes. Many RTM companies appoint a professional block management company after taking over management. This provides the best of both worlds. Leaseholders retain control over important decisions while experienced property managers handle the day-to-day administration, maintenance, compliance and financial management.

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Is Right to Manage Difficult?

The legal process involves serving formal notices, meeting eligibility requirements and creating an RTM company. Although the legislation is designed to help leaseholders, the process can become complex, particularly in larger developments. Professional guidance can make the transition smoother and help ensure ongoing compliance once the RTM company takes over management responsibilities.

Ready to explore whether Right to Manage is the right option for your building? Your Home Property Management can help you understand your options, support the RTM process and provide expert block management services once your RTM company is established. Contact us today or book a free consultation.

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Conclusion

Choosing between Right to Manage and remaining with your freeholder depends on your building’s circumstances and the quality of your current management. If your residents are frustrated by poor communication, slow repairs or a lack of transparency, Right to Manage may offer greater control and improved accountability. However, with that control comes responsibility, making professional support invaluable for many RTM companies.

Whether you’re considering forming an RTM company or looking for an experienced managing agent to support your existing RTM development, Your Home Property Management can help you manage your building with confidence, transparency and professionalism.

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Frequently Asked Questions