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.