Right To Manage Company
Take Control With The RTM
Right To Manage Problems?
Under the Commonhold and Leasehold Reform Act 2002 leaseholders have the Right To Manage or RTM. Leaseholders can form a company, the Right To Manage Company, to forcibly take the management responsibilities from their landlord.
Having the Right To Manage (RTM) puts you in control: you can appoint your own contractors for things like repairs, gardening, painting and so on. You can manage all the finances yourself and choose your own buildings insurance.
You can manage the whole block if you want to. The key point is as a Right To Manage Company, you’re in charge. You choose. It’s because you’re in control that you’ll see an improvement in services and value.
If you have any queries on the Right To Manage (RTM) process please contact us for advice. It’s 100 per cent free.
Freedom From Your Landlord
Since the Right To Manage legislation was introduced many leaseholders have used the law to liberate themselves from landlords they felt were treating them badly often through unresponsive services and inflated service charges. By applying the RTM you too can take over the day to day management of your block.
In short this means you and your neighbours could organise your own insurance, residential block maintenance, service charge collection and so on. The result is improved services and better value for money. Many blocks that have successfully achieved Right To Manage, RTM, status have decided to do the property management themselves while others have chosen to outsource the management to a new dedicated company.
Either way it’s good news for you, because you can either manage yourselves or get someone in to do it for you and – unlike before the RTM – you can now hire and fire your managing agents at will.
While winning the Right To Manage is straightforward there are some key legal procedures to complete. Achieving the Right To Manage usually takes between 4 to 8 months, but it can take longer. Exactly how long often depends on how cooperative your existing property manager and/or landlord are. But don’t worry we can help you all the way.
Plenty of landlords will contest your Right To Manage (RTM). What you have to remember is: it is a right. The law is on your side and provided you meet the criteria you will get the Right To Manage (RTM).
Do You Qualify For The Right To Manage?
Minimum Flat Owners Required
Minimum Flat Owners With 21+ Year Lease
Maximum Non Residential Use of Block
1. Form the Right To Manage Company (RTM Co)
2. Win the support of your neighbours by serving the Notice Of Participation
3. Serve the Claim Notice on your landlord
4. Prepare to manage
Your Home Property Management can oversee the RTM process for you, making it completely hassle free. We can take care of everything.
As we’ve already pointed out some landlords will fight tooth and nail to block your Right To Manage application but don’t be fazed. If you meet the criteria – you win.
Du you have any questions regarding your RTM? Get in touch we are a Right To Manage Company working on behalf of frustrated leaseholders.
How Much Will Right To Manage Cost?
Because every application is different – and blocks vary in size – it’s impossible to give a clear indication of cost for achieving RTM. There are, however, three key cost elements to any Right To Manage (RTM) application and its helpful to consider these when estimating overall cost implications.
To apply for your Right To Manage first you have to create a company, then serve the Notice inviting your neighbours to participate, and then serve the Claim Notice on your landlord. The costs of the RTM Application are company formation, administration (postage and form filling), and of course checking that your block meets the legal criteria for RTM.
2. LVT Costs
As already noted many landlords dispute Right To Manage bids by issuing a Counter Notice. Often the disputed grounds are spurious and are really just a cynical measure to buy time. But what’s doubly frustrating is that you will have to make an application to the Leasehold Valuation Tribunal (LVT) to win a judgement in your favour.
The LVT application is usually straightforward but chances are you’ll need to get legal advice to be certain you’re properly addressing the contested points in the Landlord’s Counter Notice. As we all know legal advice doesn’t come free.
3. Landlords Costs
The law says the landlord can ask for his ‘reasonable’ legal costs i.e. the costs he incurred as a direct result of your RTM application. The law is clear here and so you will need to pay for your landlord’s legal costs (again you’ll find some landlords cynically employ very expensive solicitors so be careful).
These costs are paid at the end (after you’re feeling great because you won the Right To Manage). If you believe your landlord’s costs are not reasonable you can go back to appeal them at the LVT.
One obvious point but nevertheless worth mentioning: the more leaseholders that participate the better because it helps to spread the financial burden. Tip: always consider 50 per cent participation as the minimum and aim for much higher.
Right To Manage – A Byword For Determination
Sometimes you find landlords who do all they can to stall and thwart your Right To Manage action. They resist because they’re making money at your expense – on things like insurance and management fees. They will try to retain management because they have a lot to lose. But don’t forget the law is on your side.
Right To Manage legislation is specifically designed to allow leaseholders to take management control. Let us help you win fair services and value for money.
Right To Manage – Some Of the Most Commonly Asked Questions
SHOULD I OPT FOR RIGHT TO MANAGE OR BUY THE FREEHOLD?
Both options put you in control. Buying your freehold, however, means you will never have to pay ground rent again. But buying the freehold is more expensive and more complicated than gaining the Right To Manage. For more detailed advice visit our specialist pages on Buying Your Freehold or Right To Manage.
WE HAVE TAKEN OVER THE RIGHT TO MANAGE (RTM), BUT THE LANDLORD INSISTS THAT THEY CONTINUE TO INSURE THE BUILDING. IS THIS CORRECT?
No. Your RTM company has taken over the management functions of the landlord (and any management company that might have been in place). The management functions include the insurance of the building. However the Commonhold and Leasehold Reform Act 2002 specifically provides that the landlord is entitled to arrange additional insurance – at their own expense.
IS THE RIGHT TO MANAGE (RTM) COMPANY RESPONSIBLE FOR CHASING SERVICE CHARGE ARREARS FROM BEFORE IT TOOK OVER MANAGEMENT?
No. From the date it acquires management responsibilities the RTM company becomes entitled to demand service charges. The landlord will therefore remain responsible to collect ‘previous’ arrears unless the RTM company has otherwise agreed with the landlord to collect them.
CAN I ASK THE LANDLORD TO PROVIDE THE NAMES OF THE OTHER LEASEHOLDERS SO I CAN INVITE THEM TO PARTICIPATE IN THE RTM PROCESS?
It is only the RTM company that can insist on the landlord providing the names of the other leaseholders for this purpose. This can be a problem because you will be unable to exercise the Right To Manage if you do not have sufficient numbers of qualifying leaseholders interested in taking part. We suggest that you try to get this information from the occupiers of the flats or from the Land Registry.
For more detailed advice on the Right To Manage check out LEASE’s completely impartial Right To Manage Guide
Call us direct for advice on the Right To Manage (RTM)