Right to Manage v Recognised Tenants Association the available options if there is not a registered Management Company in place

Before you go any further, give some thought to how you want the building to be managed in future:

Right to Manage (RTM)

What it is:

  • A legal right for leaseholders of flats in a building to take over the management of their block without having to prove fault on the part of the current landlord or managing agent.

Legal basis:

  • Established under the Commonhold and Leasehold Reform Act 2002.

Who can use it:

  • Leaseholders (not tenants with short-term or assured tenancies) who live in qualifying blocks of flats.

Requirements:

  • At least 50% of the leaseholders in the block must participate.
  • The building must meet specific criteria (e.g., the block must be self-contained, have at least two flats, and no more than 25% of the building can be non-residential).

What it allows:

  • Leaseholders form a Right to Manage company (RTM company).
  • The RTM company can take over services like maintenance, repairs, and insurance from the landlord or managing agent.

Limitations:

  • Does not transfer ownership—only management rights.
  • The landlord retains the right to be a member of the RTM company.

Recognised Tenants’ Association (RTA)

What it is:

  • A formally recognised group of tenants (including leaseholders and sometimes renters) in a building who act collectively to represent their interests to the landlord.

Legal basis:

  • Governed under the Landlord and Tenant Act 1985.

Who can use it:

  • Tenants and leaseholders (both can be members).
  • Recognition can be given by the landlord or formally granted by the First-tier Tribunal (Property Chamber).

Requirements:

  • Typically, 60% of tenants in the building must be members for the Tribunal to consider granting recognition.

What it allows:

  • The RTA has legal rights to:
    • Be consulted on major works and service charges.
    • Request information from the landlord (e.g., accounting, maintenance plans).
    • Represent tenants in disputes or negotiations.

Limitations:

  • An RTA cannot take over the management of the property.
  • It can only advocate and consult, not manage.