Right to Manage Companies
What happens if you aren’t satisfied with the upkeep of your apartment block? Or if you simply wish to be in charge of the governance of your block? It's the right of every resident, flat owner, or leaseholder to live in a compliant, safe, and well-maintained apartment block. As the leaseholder, if you want to take up responsibility for the block property operations, you can form a Right to Manage company, granted by the government under the Commonhold and Leasehold Reform Act 2002.
At Habitare, we offer a range of property management solutions that help Right to Manage companies effectively discharge their duties. Contact us to learn more about our block property management services.
What is a Right to Manage Company?
A Right to Manage company (RTM) is a legal entity formed by leaseholders collectively transferring the duty of property management from the freeholder or landlord.
Setting up a Right to Manage company is relatively simple and doesn’t require the landlord’s permission or a court order. Leaseholders also don’t need to prove freeholder mismanagement to form an RTM.
Setting up an RTM
When setting up a Right to Manage company, the following criteria should be fulfilled:
- The building must comprise individual residential flats and two-thirds must be leasehold
- The lease must be 21 years or more when granted
- An RTM cannot be formed if more than 25% of the building has non-residential areas
- If the building has a resident landlord and fewer than four apartments, it might not be eligible for the Right to Manage process.
Once over 50% of the leaseholders agree to form the Right to Manage company, it must be registered with the Companies House, with at least one or more directors appointed. A formal notice needs to be sent to all the leaseholders with a two-week response period. Next, the freeholder, landlords, or an existing property management firm will need to be notified of the RTM claim in writing.
Generally, freeholders are given a month’s time to respond to this notice. Disputes can be resolved through a tribunal.
Once everything has been sorted, the RTM company can take over the day-to-day property management duties. The team at Habitare can assist you with any areas of property management that your RTM company may need help with.
What Are RTM Director Responsibilities?
A Right to Manage company directors’ responsibilities are vast, including:
Legal Responsibilities
Directors must comply with the Companies Law, health and safety laws (e.g. fire safety regulations), and data protection laws.
Financial Responsibilities
RTM directors also need to prepare and manage the annual budget, collect and manage service charges, and pay for insurance and taxes.
Operational Responsibilities
Another of the RTM company directors’ responsibilities is properly maintaining their property, which may include hiring top contractors, managing service contractors, and addressing leaseholder complaints.
Administrative Responsibilities
RTM directors need to actively conduct annual general meetings and make fair and transparent decisions. They’re held liable for any mismanagement or non-compliance.
If you’re an RMC director looking for professional block managing agents, reach out to us today. When you work with an experienced professional block management team like Habitare, you can enjoy peace of mind knowing that responsibilities are being handled.
“Great customer service. Very knowledgeable and a pleasure to deal with, highly recommend.”
Drew Joseph
Common Challenges Faced By RTM Companies
Taking over the responsibilities of property management from freeholders can provide leaseholders with greater control over day-to-day operations, but it also brings its fair share of challenges. These include:
Benefits of Professional Management with Habitare
A Right to Manage leasehold company has a number of responsibilities that, if not carried out effectively, can have an impact on residents' living conditions and even make an RTM liable for legal actions.
To avoid this and to maintain operational efficiency, we can assist you with the following services:
REGULAR INSPECTIONS
Habitare’s experienced property managers will conduct regular inspections and offer maintenance and repair solutions. Our proactive solutions will help avoid unfortunate incidents in your block.
Resident Surgeries
We can help convey feedback from residents to RTM directors. This helps to create a sense of openness and transparency within your block.
SECRETARIAL SERVICE
A key responsibility of RTM directors is to ensure proper record-keeping and compliance with regulatory requirements. Our property managers can help you with administrative tasks, taking this burden off your shoulders.
Contractor Management
At Habitare, we only work with the best local contractors who adhere to our contractor charter. This ensures that every job completed for your block meets our strict guidelines.
On-site Staff Management
We help RTM directors with all aspects of on-site staff management—from supervision to communication and management.
Service Charge Collection
Habitare’s financial team is on hand to guide RTM directors with service charge collection, budgeting, forecasting, and record-keeping.
Emergency Out-of-Hours
In the event of a property-related emergency, we’re always here to help. We provide quick response and assistance during emergencies.
Exceptional Customer Service
We tailor each of our services to ensure resident satisfaction. With Habitare, RTM directors can disburse their duties without any disruption.
In-House Accounts Team
Our experienced team is available to help you with end-to-end financial assistance, from budgeting and forecasting to reserve fund planning.