Right to Manage: The Process, Step by Step (2026)

Right to Manage (RTM) is the statutory route that lets leaseholders take control of how their block is run - without having to buy the freehold and without proving the current management is bad. It was introduced under the Commonhold and Leasehold Reform Act 2002 and remains the most common way for leaseholders in small and medium blocks to take charge of their service charge, their contractors and their building.

Below is the realistic step-by-step process, based on how RTM claims actually run on the ground in Romford and East London.

Step 1 - Check you qualify

Before spending a penny, confirm the building and the leases qualify:

• The building is in England and contains at least two flats held by qualifying leaseholders. Houses-only estates are outside this RTM route.
• The premises are a self-contained building, or a qualifying self-contained part: a vertical division capable of independent redevelopment, with independent services. Connected or separate blocks need individual assessment.
• At least two-thirds of all flats are held by qualifying long leaseholders (leases originally granted for more than 21 years). Shared-ownership leases need checking before they can be counted.
• No more than 50% of the internal floor area (excluding common parts) is used for non-residential purposes. Exactly 50% is within the limit.
• A local authority is not the immediate landlord of any qualifying leaseholder.
• The resident-landlord exemption needs checking for converted buildings with four units or fewer where the freeholder or an adult family member has occupied a flat as their only or principal home throughout the last 12 months. Non-residential units count towards that four-unit limit.

These are the main tests, not a legal determination. An existing RTM company or Tribunal-appointed manager also needs checking. Use our RTM eligibility checker for a preliminary result, then have the building, leases and any exclusions verified before a claim.

Step 2 - Build the membership

Before serving the claim notice, qualifying leaseholders representing at least half of all flats in the building must be members of the RTM company, rounded up where necessary. In a 20-flat block with 18 qualifying flats, members must represent at least 10 flats. In a two-flat building, both must participate. This is the part that takes time, not paperwork. A quick door-knock and a written summary explaining what RTM is - and what it isn't - usually gets you there in a few weeks.

Step 3 - Incorporate the RTM Company

The RTM company is a private company limited by guarantee, set up with the prescribed Articles of Association. It must be incorporated at Companies House before you serve any notices. Set-up takes around a week and costs around £150-£300 depending on whether a solicitor or managing agent does it for you.

Step 4 - Serve the Notice of Invitation to Participate

Once the company exists, you must invite every qualifying leaseholder who isn't already a member to join. You can't serve the Claim Notice until this has been done and at least 14 days have passed.

On 27 August 2026 the Supreme Court held that missing this notice does not automatically invalidate the claim notice that follows, and that the remedy for a tenant who was left out lies under section 107. The statutory step still has to be carried out properly - see our legal update on the Supreme Court ruling in Avon Freeholds v Cresta Court.

Step 5 - Serve the Claim Notice

This is the formal notice on the freeholder (and any other landlords and the current managing agent) saying the RTM company intends to acquire management. The notice has prescribed contents and must specify an acquisition date at least three months after the date the landlord can serve a counter-notice.

Step 6 - The landlord's response

The landlord has one month from the Claim Notice to serve a Counter-Notice. They can either admit the claim, or dispute it on specific statutory grounds (such as the qualifying criteria not being met). They cannot block RTM just because they don't want it to happen.

If the landlord disputes the claim, the RTM company has two months to apply to the First-tier Tribunal (Property Chamber) for a determination. Most disputes are about qualifying criteria, not the principle.

Step 7 - Acquisition day

On the acquisition date specified in the Claim Notice, management transfers. From that morning the RTM company is responsible for repairs, services, insurance, service charge collection and Section 20 consultation. The outgoing managing agent must hand over:

• All accounting records, including service charge accounts and reserve fund balances.
• All contracts - cleaning, gardening, lift maintenance, insurance.
• Health & safety, fire risk assessments and compliance records.
• Leaseholder contact details and the demand register.

Step 8 - Appoint a managing agent (or self-manage)

For the insurance handover, see who is responsible for buildings insurance after RTM. Transfer of the management function does not automatically transfer or cancel an existing policy.

Most RTM companies appoint a managing agent on day one. The agent handles the day-to-day; the directors set the budget, choose the contractors and hold the agent to account. A few small blocks self-manage, but in practice it's a lot of director time and personal liability. For buildings with 10 or more flats, we can fund our RTM service when we are appointed to manage afterwards - see Funded Right to Manage.

What costs can arise when claiming Right to Manage?

Following reforms that took effect on 3 March 2025, an RTM company and its members are generally no longer responsible for costs incurred by the landlord, or by anyone else, in consequence of an RTM claim notice. Sections 88 and 89 of the Commonhold and Leasehold Reform Act 2002 were removed and replaced by a new section 87A, which also makes any contract or arrangement purporting to impose those costs ineffective to that extent.

That does not make Right to Manage cost-free. Our Right to Manage cost calculator gives an indicative figure for a block of your size. Costs that can still arise include:

• The RTM company's own professional and administrative costs of running the claim.
• Company formation, and title or document fees for the information needed to serve valid notices.
• Independent legal or specialist advice where the title, the leases or the block are unusual.
• Costs under the limited statutory exceptions, including costs connected with the pre-claim information requirements.
• Costs where a court or tribunal has power to make, and does make, a costs order - for example under section 87B where a claim ceases.

Realistic timetable

• Weeks 1-4: build membership, set up company.
• Weeks 4-6: serve Notice of Invitation to Participate.
• Weeks 6-10: serve Claim Notice.
• Weeks 10-14: landlord counter-notice period.
• Weeks 14-22: 3-month wait until acquisition date.
• Week 22: acquisition; new managing agent takes over.

Common pitfalls

• Skipping the Notice of Invitation to Participate - this is the single most common procedural defect that lets a landlord win on a technicality.
• Getting the qualifying flats wrong - short leases, head leases and commercial units all need careful checking.
• Assuming the old costs rules still apply - since March 2025 the landlord's costs of dealing with a claim notice are generally not recoverable from the RTM company, but the company's own costs and third-party fees still need budgeting.
• No plan for day one - on acquisition day, repairs don't stop. Have a managing agent and an insurance policy ready before you serve the Claim Notice.

This article is a general guide, not legal advice. RTM is governed by Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002. For specific situations, consult a solicitor with leasehold experience or the Leasehold Advisory Service (LEASE).