Can I insist that our RTM company brings in an independent firm to review how the building is being managed, and who would pay for it?
Not usually as a general automatic right. A leaseholder can raise concerns and use any applicable company or service-charge information rights, but a wide-ranging governance or management review will normally require the RTM company's cooperation or approval. If serious management failures are alleged, the leaseholder should consider the appropriate statutory remedies and obtain legal advice.
There is no general statutory right allowing one leaseholder to compel a right to manage (RTM) company to commission a wide-ranging governance or management review. What exists instead is a set of narrower rights, mainly over service charge information under the Landlord and Tenant Act 1985 and over company records under the Companies Act 2006, plus the statutory remedies in Part II of the Landlord and Tenant Act 1987 where serious failures are alleged.
In practice most reviews happen because the board agrees to one. A board may do that to resolve a dispute, to test whether its agent is performing, or simply to get an objective view before deciding what to change.
A review is only as good as the access it is given. Before anything is commissioned, agree in writing what the reviewer will examine, for example budgets and expenditure, procurement, insurance placement, compliance records, or the agent's service delivery against the management agreement.
The RTM company usually has to authorise its managing agent to release records to an external reviewer, because those records relate to the agent's client. A reviewer cannot compel disclosure, and neither can a managing agent acting for someone else.
Whoever instructs the reviewer normally pays. If the RTM company instructs the review, the cost may or may not be recoverable through the service charge, depending on the lease and on whether the cost is reasonable. If an individual leaseholder commissions their own review, they pay for it and will usually have limited access to documents.
Do not assume any review can be provided free of charge, and do not assume the company must fund a review requested by one member.
An independent reviewer should have no financial interest in the outcome. If a firm hopes to be appointed as the next managing agent, that should be disclosed at the outset and taken into account when the report is read. A short written scope, a stated methodology and a factual report do more for credibility than strong conclusions.
An operational review looks at how the building is being managed: controls, records, procurement, compliance and reporting. It does not determine legal rights, does not decide whether a director has breached a duty, and cannot substitute for advice from a solicitor. Where the question is legal, take legal advice.
A refusal is not the end of the road. Reasonable next steps include using service charge information rights under sections 21 and 22 of the Landlord and Tenant Act 1985, reviewing the filed accounts at Companies House, using company member rights such as requiring a general meeting, or, where serious failures are alleged and evidenced, considering Tribunal appointed management.
The wider sequence is set out in our hub answer on what leaseholders can do if they are concerned about how an RTM company is being run.
This page provides general information about property management in England and is not legal advice. The appropriate steps will depend on the lease, the RTM company's articles, company membership, the available evidence and the circumstances of the building.
Reviews work best when everyone understands who instructs the reviewer, what will be examined and how the findings will be used.
Assuming a right to a free, open ended audit
No such general right exists. Someone must instruct and pay for a review, and the scope should be defined.
Instructing a reviewer who wants the management contract
An undisclosed commercial interest undermines the report. Ask about conflicts before instructing.
Expecting a review to settle legal questions
An operational review is not legal advice and cannot determine breach of duty or entitlement.
Most questions on this topic are management questions rather than legal ones, and the two are worth separating. A managing agent can tell you how something works day to day and what it will cost. A solicitor tells you what your rights are and how a Tribunal is likely to view them.
East Valley Properties provides management expertise, not legal advice. Where a matter turns on the wording of your lease or on formal proceedings, we will say so and work alongside your solicitor.
The official material behind this guide. We summarise it in plain English rather than reproducing it.
Request for a summary of relevant costs.
Inspection of supporting documents.
Preliminary notice and appointment of a manager.
Inspection of the register of members.
We act as managing agent for RTM companies across Greater London and Essex, covering service charge accounting, compliance and contractor management on fixed fees.
Answered by Romain Maillard - Director, East Valley Properties
Romain manages residential blocks and estates for RTM companies, residents' management companies, share of freehold developments and freeholders across East London and Essex.
Published
This answer has been anonymised. Personal details, addresses and company names have been removed. Guidance is general and does not replace advice from a solicitor or surveyor on your specific block. East Valley Properties is a managing agent, not a firm of solicitors or legal advisers.
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