Start by identifying the concern
Concerns about a right to manage (RTM) company usually fall into recognisable groups, and the right response depends on which group you are in:
- dissatisfaction with communication, such as slow or unclear replies;
- concerns about service charge expenditure, for example the level or basis of a cost;
- missing or incomplete accounts;
- procurement or insurance concerns, such as how contractors or the policy were selected;
- failure to maintain or insure the building;
- compliance or safety concerns, including fire safety and statutory testing;
- disagreements with the RTM directors about decisions they are entitled to take;
- concerns about the managing agent appointed by the RTM company;
- serious or persistent management failures.
Disagreeing with a decision does not by itself prove mismanagement. Directors are allowed to make judgement calls that some members dislike, provided they act within the lease, the articles and their duties. Separating a preference from a genuine failure will save time and keeps your position credible.
Confirm who is responsible for what
Six roles are easy to confuse:
- the RTM company holds the management functions acquired under the Commonhold and Leasehold Reform Act 2002 and is the body legally responsible for exercising them;
- the RTM directors run the company and take management decisions on its behalf;
- members of the RTM company hold company law rights, such as voting at general meetings;
- the managing agent is a contractor appointed by, and acting on the instructions of, the RTM company;
- the landlord or freeholder retains ownership and any functions that did not transfer;
- individual leaseholders hold rights under the lease and under service charge legislation.
The practical consequence is that a managing agent normally takes instructions from the RTM company, not from an individual leaseholder. An agent can and should handle repair reports and ordinary resident enquiries, but it cannot usually give one leaseholder access to confidential company records without the RTM company's authority. See whether an individual leaseholder can contact the managing agent.
Check whether you are actually a member of the RTM company
Owning a qualifying flat does not automatically make you a member of the RTM company. Membership normally follows a separate step, and it matters, because it affects rights relating to company meetings, voting, company information, appointing or removing directors, and requiring the directors to call a general meeting.
Check the company's articles of association and its register of members before relying on any company law right. Most RTM companies adopt the prescribed model articles made under the RTM Companies (Model Articles) (England) Regulations 2009, although you should read the version actually filed for your company. There is more detail in our answer on seeing an RTM company's register of members.
Put the concerns in writing, proportionately
A calm, specific letter or email achieves far more than a long list of grievances. A good written approach:
- identifies each concern separately, with dates;
- attaches supporting documents where you have them;
- asks specific questions rather than general ones;
- requests a response within a reasonable period;
- avoids unsupported allegations about individuals;
- proposes practical remedial actions the board could take.
Keep a copy of everything. If matters later escalate, the written trail is usually the most valuable evidence you have. Where directors do not reply at all, see what leaseholders can do if RTM directors refuse to respond.
Request the right information from the right route
Different documents sit under different rights, and asking through the wrong route is a common reason for a refusal:
- service charge summaries and supporting documents are dealt with under sections 21 and 22 of the Landlord and Tenant Act 1985;
- company accounts filed at Companies House are publicly available;
- the RTM company's statutory registers are governed by the Companies Act 2006;
- board minutes and internal correspondence are company records, and there is no general leaseholder right to them;
- managing agent records belong to the agent's client, the RTM company;
- personal data belonging to other residents is restricted by data protection law.
No leaseholder has an unrestricted right to every RTM or managing agent document. Our answers on inspecting an RTM company's accounts and invoices and on inspecting service charge invoices explain the sequence.
Consider proposing an independent review
An RTM board may decide, voluntarily, to commission an independent review of governance and decision making, service charge controls, budgets and expenditure, procurement and contractor management, insurance arrangements, repairs and compliance monitoring, or managing agent performance. Boards sometimes welcome this, because an outside view can settle a dispute that internal correspondence cannot.
An individual leaseholder does not automatically have a general right to require the RTM company to commission or pay for a wide-ranging independent audit. The company's approval will also usually be needed before its managing agent releases confidential company information to an external reviewer. See can a leaseholder demand an independent review.
Use company member rights where they apply
If you are a member of the RTM company, company law may give you routes that a non-member does not have. At a high level, qualifying members may be able to:
- request access to the register of members for a proper purpose under section 116 of the Companies Act 2006;
- require the directors to call a general meeting under section 303, where the statutory threshold of members is met;
- propose resolutions for consideration at a general meeting;
- vote on the appointment or removal of directors, subject to the Companies Act 2006 (including the section 168 procedure) and the company's articles.
None of this allows one leaseholder to appoint themselves as a director or to remove the board unilaterally. These are collective procedures with formal requirements, and they should be followed carefully.
Consider whether the managing agent should change
Where the real problem is the performance of the agent rather than the directors, the cleanest remedy is often a change of agent. That is a decision for the RTM company, taken in accordance with the management agreement and its notice and termination provisions, the company's articles, and any board or member approval requirements.
Our answer on whether an RTM company can change managing agent sets out how boards usually approach it, and our guide to changing managing agent covers the handover.
Section 24 as a last resort
Where serious management failures remain unresolved, a qualifying person may be able to apply to the First-tier Tribunal for the appointment of a manager under Part II of the Landlord and Tenant Act 1987. That route can be available even where an RTM company currently manages the building.
It is not a shortcut. In practice:
- appointment is not automatic;
- a statutory ground under section 24 must be established;
- evidence is required, not assertion;
- the Tribunal must also be satisfied that appointment is just and convenient;
- a preliminary notice under section 22 of the Landlord and Tenant Act 1987 will normally be required first;
- that notice must identify the alleged failures and the remedial steps required;
- the respondent must normally be given a reasonable opportunity to put matters right;
- the Tribunal has power to dispense with the preliminary notice in appropriate circumstances, but this should never be assumed;
- proceedings can be time consuming and expensive, and success does not necessarily mean every cost is recovered.
Read more on Tribunal appointed management, on Section 22 preliminary notices, and on whether Section 24 can be used against an RTM company. If you are unsure which Section 22 applies to you, our answer on the two types of Section 22 notice explains the difference.
When professional advice is needed
Take legal advice before you consider removing directors, serving a statutory notice, pursuing disputed company records, alleging breach of duty, applying to the Tribunal, seeking to recover costs, or formally challenging service charges. Take advice urgently where safety, insurance cover or the security of service charge funds is in question. Directors themselves may also want to read our answer on RTM and RMC director personal liability.
If your building is not yet under an RTM company and you are researching the process, see our guidance on Right to Manage.
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.