Right to Manage Eligibility: A Simple Checklist

RTM is a no-fault right. You do not need to prove mismanagement — just eligibility.

The Right to Manage, introduced by the Commonhold and Leasehold Reform Act 2002, lets leaseholders of flats take over the management of their building without having to prove fault or pay the landlord's legal costs.

An RTM company takes over repairs, maintenance, insurance, cleaning, and service charge administration. The landlord keeps the freehold and ground rent, but day-to-day management passes to you.

Most groups that get stuck on RTM get stuck on the same three requirements. This checklist helps you avoid them.

RTM eligibility checklist

Building criteria

• The building contains at least two flats — single-house conversions may not qualify
• The building is self-contained — or can be managed independently (its own entrance, services, and facilities)
• At least two-thirds of flats are held by qualifying tenants — leaseholders who are not the freeholder
• The building is not subject to any statutory exclusions (see below)

Qualifying tenant criteria

• You hold a long lease — originally granted for more than 21 years
• You are not a Crown or public sector tenant in most cases
• Your lease does not contain a business-tenancy exclusion

RTM company requirements

• Form an RTM company — a private company limited by guarantee registered at Companies House
• The company's articles must comply with the RTM regulations (model articles are available)
• At least 50% of qualifying tenants must be participating members of the RTM company before serving the claim notice
• No more than 25% of floor space may be non-residential (excluding common parts)

Statutory exclusions

• Buildings where the freeholder holds a qualifying lease of a flat within the building
• Buildings subject to a full management order by the First-tier Tribunal
• Buildings managed together with others where non-qualifying parts exceed 50%
• Buildings where the landlord is a local authority, housing action trust, or certain public bodies

The RTM timeline at a glance

1. Form the RTM company at Companies House (1–2 weeks)
2. Recruit participating members — at least 50% of qualifying tenants must formally join (2–4 weeks)
3. Serve notice of claim to the landlord and other parties (Day 0)
4. Landlord has one month to serve a counter-notice (Days 0–30)
5. If no objection: RTM takes effect roughly 3 months from the notice date
6. If the landlord objects: you may need to apply to the First-tier Tribunal
7. Management handover: the landlord hands over documents, information, and funds

Three mistakes that trip up most RTM claims

• The 50% threshold. At least half of qualifying tenants must formally join the RTM company before you serve the notice. An email saying "I am interested" is not enough — each must complete the joining process.
• The 25% floor-area rule. If more than a quarter of the building's total floor area is non-residential, the building is excluded. Verify the numbers before you start.
• The counter-notice deadline. If the landlord misses the one-month deadline, your claim succeeds automatically. If they object on time, you need to act quickly.

Manage your RTM claim in LeaseholdConnect

LeaseholdConnect helps you organise every stage: track participating members, store notice documents, manage the handover checklist, and run your first post-RTM meeting as the new management company.

Once you take over management, run meetings, votes, documents, and service charge administration in one organised workspace.

Read our full Right to Manage guide for a detailed walkthrough, or start your free workspace today.