Our block is managed by an RTM company and I think it is being managed badly. Can the Tribunal appoint a manager even though the leaseholders control the company?
Possibly. The existence of an RTM company does not automatically prevent a qualifying person from considering an application under Part II of the Landlord and Tenant Act 1987. The Tribunal must be satisfied that a statutory ground is made out on the evidence and that appointment is just and convenient. A preliminary notice under section 22 of the 1987 Act will normally be required first, and the proposed manager and draft management order matter a great deal. Legal advice is strongly recommended before starting.
Part II of the Landlord and Tenant Act 1987 allows the First-tier Tribunal to appoint a manager for premises where the statutory conditions are met. The fact that leaseholders collectively control the managing body does not automatically remove that route, and applications concerning resident controlled companies do reach the Tribunal.
Equally, the procedure is not designed to resolve ordinary disagreements between members and a board. If the real issue is a decision you dislike, or communication that has broken down, the routes in our hub answer on concerns about how an RTM company is being run will usually be more proportionate.
In broad terms an applicant must show that a ground in section 24 is established on the evidence, and the Tribunal must also be satisfied that it is just and convenient to make the order in all the circumstances. Grounds include matters such as breaches of obligation in relation to the management of the premises and unreasonable service charges, and the statutory wording should be read in full.
Two practical points are often underestimated. First, evidence carries the case: dated correspondence, accounts, reports and compliance records, not assertions. Second, the Tribunal needs a credible proposed manager and a workable draft management order setting out the functions, duration, remuneration and reporting arrangements. A well prepared draft order is frequently the difference between an application that works and one that does not.
A notice under section 22 of the Landlord and Tenant Act 1987 will normally be required before an application. It must identify the alleged failures and the remedial steps required, and give a reasonable period to put matters right. The Tribunal has power to dispense with the notice requirement in appropriate circumstances, but that should never be assumed.
Note that this is not the same as section 22 of the Landlord and Tenant Act 1985, which concerns inspecting service charge documents. The difference is explained in our answer on the two types of Section 22 notice, and our guide to Section 22 preliminary notices covers the drafting.
Appointment is never automatic. Proceedings take time, professional costs can be significant, and a successful applicant does not necessarily recover every cost incurred. Consider whether a change of managing agent, or a negotiated improvement plan, would achieve the same practical result sooner. Our page on Tribunal appointed management explains how an appointed manager operates in practice.
Legal advice is strongly recommended before serving a notice or making an application.
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.
Section 24 is a serious remedy for serious failures, and preparation determines whether it is worth starting.
Treating Section 24 as a quick fix
It is an evidence based statutory process, and appointment is at the Tribunal's discretion.
Serving a template notice
A notice that omits the remedial steps or a reasonable period may undermine the application.
Applying with no proposed manager
The Tribunal needs a credible manager and a workable draft management order.
Assuming costs will be recovered
Success does not guarantee recovery of all professional costs.
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.
Preliminary notice before an application to appoint a manager.
Appointment of a manager by the Tribunal, and the grounds.
Sections 21 to 24, including who may apply and the exceptions.
Current First-tier Tribunal application forms and guidance.
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.
Whether you're an RTM Director, RMC Director, Freeholder or Leaseholder, our experienced block management team is here to help.
If your question could help other property owners, we may publish an anonymised version of the answer in our Knowledge Centre.
Book a free consultation with East Valley Properties to discuss your building, service charges, compliance or managing agent requirements.