Right to Manage (RTM): 2026 Guide for Leaseholders

Did you know that 80% of leaseholders now consider exercising their legal rights a top priority for 2026? If you’re tired of watching service charges climb while the communal hallway carpets grow more stained by the day, you aren’t alone. Taking control through the rtm (Right to Manage) process is no longer a radical move; it’s a practical step toward protecting your investment and your peace of mind.

Most residents we speak with in Devon and across the South West feel trapped by unresponsive landlords and opaque financial reporting. It’s exhausting to pay rising fees while maintenance standards slip and property values stall. This comprehensive guide explains exactly how the rtm process works under the latest legislative reforms, including the new 50% non-residential threshold. We’ll help you determine if your block qualifies and outline the steps to successfully transition management to a team that prioritises transparency. By the end of this article, you’ll have a clear roadmap to lowering your service charges and restoring the quality of your home.

Understanding the Right to Manage (RTM) in 2026

The Right to Manage is a statutory power granted to leaseholders under the Commonhold and Leasehold Reform Act 2002. It allows you to take over the management functions of your building from the landlord without needing their permission or proving they’ve managed the property poorly. For many residents, understanding What is the Right to Manage (RTM)? is the first step toward reclaiming control over their living environment. Whilst the landlord retains the freehold ownership, the leaseholders take full responsibility for the day-to-day running of the block through a dedicated company.

By 2026, the landscape for an rtm claim has become significantly more accessible for leaseholders across the United Kingdom. Recent legislative shifts, specifically the Leasehold and Freehold Reform Act 2024, have removed several traditional barriers. For instance, mixed-use buildings in Devon can now qualify even if up to 50% of the internal floor area is commercial, which is a substantial increase from the previous 25% limit. Additionally, the RTM company is no longer automatically liable for the landlord’s legal costs. This makes the process far less financially daunting for smaller blocks and groups of residents.

Why Leaseholders Choose the RTM Route

Dissatisfaction often stems from a lack of transparency in service charge management. When you exercise your right, you gain the authority to scrutinise every penny spent on your building. Instead of being tied to expensive national maintenance contracts favoured by distant landlords, you can choose local, responsive suppliers. This shift often leads to higher maintenance standards and more frequent site inspections. For residents in the South West, this means your property is looked after by people who actually visit the site and understand the local climate’s impact on building fabric.

RTM vs. Collective Enfranchisement

It’s vital to distinguish between taking management control and buying the freehold. Collective enfranchisement involves leaseholders coming together to purchase the building outright, which can be a lengthy and expensive legal undertaking. In contrast, the rtm process is often a faster, more cost-effective first step for those who simply want better residential block management. You form a separate legal entity, known as an RTM company, which stands as the managing body. This provides a structured framework for property compliance and financial reporting without the high capital outlay required for a full freehold purchase. It’s a practical way to secure professional property management services that align with your specific needs.

Qualifying Criteria: Can Your Block Exercise the Right to Manage?

Before you begin the rtm process, you must ensure your building meets specific statutory requirements. These criteria act as a safeguard to ensure that the transition of management is supported by a significant portion of the residents. Whilst the right is powerful, it’s strictly defined by the physical nature of the building and the legal status of its occupants. Most purpose-built blocks of flats will qualify easily, but conversions and mixed-use developments require a closer look at the floor plans and lease structures.

• The Two-Thirds Rule: At least two-thirds of the flats in the block must be held by “qualifying tenants” on long leases.
• The 50% Membership Rule: At least half of the total number of flats in the building must be members of the RTM company at the time the notice is served.
• The Commercial Threshold: Under the latest 2026 standards following the Leasehold and Freehold Reform Act 2024, the limit for non-residential use has increased. Your building can now qualify if up to 50% of the internal floor area is commercial, which is a significant rise from the previous 25% cap.
• Structural Independence: The building must be structurally detached or a self-contained part of a larger building that could be managed independently.

Who is a ‘Qualifying Tenant’?

A “qualifying tenant” is someone whose lease was originally granted for a term of more than 21 years. Most residential flat owners in Devon and the South West fall into this category. If one person owns multiple flats in the block, they are still counted as a qualifying tenant for each flat. However, they only count as one member for the 50% membership threshold unless they sign up for every flat they own. It’s also worth checking Leasehold Advisory Service guidance to see how specific rules apply to local authority tenants or those in shared ownership schemes, as these can sometimes complicate the claim.

Common Exclusions and Obstacles

Not every building is eligible for the rtm route. For example, if you live in a small conversion of four or fewer flats and the landlord lives in one of them as their primary residence, the block is likely excluded. Similarly, if the First-tier Property Tribunal has already appointed a manager to resolve previous disputes, your right to claim management might be restricted. Complex estate structures also present challenges. If your block shares communal grounds or car parks with other buildings, you must ensure the claim covers a self-contained part of the development. If you are unsure whether your specific development qualifies, you can speak with our team for a professional assessment of your eligibility.

The Step-by-Step Right to Manage Process

The rtm process is a structured legal journey that demands meticulous attention to detail. Whilst the right itself is absolute, failing to follow the correct sequence can lead to technical challenges from the landlord, potentially delaying your control by months. Success begins with clear organisation and transparency amongst your fellow leaseholders to ensure the company is formed on a solid foundation.

• Step 1: Company Formation. You must register a dedicated company limited by guarantee with specific Articles of Association.
• Step 2: Invitation to Participate. A formal notice must be served to every qualifying tenant who hasn’t already joined the company.
• Step 3: Notice of Claim. This is the formal start of the legal takeover, served on the landlord and any current managing agents.
• Step 4: The Counter-Notice Period. The landlord has a set window to either accept the claim or challenge it on technical grounds.
• Step 5: Handover and Acquisition. On the specified date, management functions officially transfer to the leaseholder-led company.

Setting Up Your RTM Company Correctly

You cannot use standard off-the-shelf company documents for this process. The law requires you to use a prescribed form for rtm articles, which ensures the company is fit for the purpose of managing a residential block. Appointing your initial directors is a critical decision. You need individuals who are proactive and committed to the long-term value of the development. Every qualifying tenant must be given the opportunity to join, and keeping a clear record of these invitations is vital to prove you’ve met your statutory duties if the landlord later questions the validity of the company.

Serving the Notice of Claim

Once your company is established and participation notices are handled, you serve the ‘Notice of Claim’. This document must be precise, listing all members and providing a date by which the landlord must respond with a counter-notice. This response period must be at least one month. If the landlord challenges the claim, the dispute is usually settled by the First-tier Property Tribunal. However, if no valid challenge is made, the ‘Acquisition Date’ is typically set for four months after the notice was served. This four-month window is a crucial time for the new directors to organise their property management services and prepare for the financial responsibilities of residential service charge administration.

Life After RTM: Managing Your Block Effectively

Successfully completing an rtm claim is a significant milestone, but the acquisition date marks the beginning of a new set of responsibilities. As a director of the new company, you’re no longer just a resident; you’re a legal officer with fiduciary duties. This means you’re responsible for the building’s safety, finances, and long-term health. Failing to meet these obligations can lead to personal liability, making it essential to establish robust systems from day one. You’re now the “Safe Pair of Hands” that your neighbours are counting on to protect their investments.

One of your first tasks involves Section 20 consultation management for any upcoming major works. If a project will cost any single leaseholder more than £250, you must follow a strict three-stage consultation process. Missing a step here can be financially disastrous for the company, as it may limit the amount you can legally recover from residents. Ensuring statutory compliance for residential blocks is a continuous job that includes fire risk assessments, health and safety audits, and lift inspections.

Financial and Administrative Responsibilities

Managing the money is often the most sensitive part of the role. You’ll need to set a realistic service charge budget that covers daily costs whilst building a healthy reserve fund for future repairs. Accuracy is paramount to maintain trust within the block. Most boards find that investing in professional service charge accountancy is the best way to ensure financial transparency. For a comprehensive overview of your obligations in this area, our residential service charge administration guide for RMC directors covers statutory compliance, RICS standards, and best practices for clear financial reporting. You’ll also need a firm but fair process for managing leaseholder arrears to ensure the company remains solvent and capable of meeting its maintenance obligations.

Maintenance and Compliance Obligations

Keeping residents informed is just as important as the physical maintenance of the building. Proactive leaseholder communication management prevents misunderstandings and ensures everyone understands the value they’re receiving for their service charges. Because the administrative burden can be overwhelming for volunteers, many rtm companies choose to appoint a professional managing agent to handle the daily operations. This allows directors to focus on high-level decision-making rather than getting bogged down in contractor invoices or minor repairs. If you’re feeling the weight of these new duties, you can contact our local team for expert support in managing your Devon property.

Professional Support for RTM Directors in the South West

Transitioning to an rtm company is a bold step toward autonomy, but the administrative reality that follows requires a steady, experienced partner. For directors seeking reliable Block Management Devon, local knowledge isn’t just a convenience; it’s a necessity for effective property oversight. National managing agents often struggle to provide the granular attention that South West developments deserve. By choosing an independent specialist, you ensure that your building is managed by people who understand the local supply chain and regional market conditions. Our goal is to provide the stability you need to lead your community effectively.

We pride ourselves on being a “Safe Pair of Hands” for newly formed boards and existing Resident Management Companies (RMC). This means we take over the complex tasks of Property Compliance and Service Charge Management, allowing directors to focus on the high-level vision for their building. Whether you are overseeing a small heritage conversion in a coastal town or a large modern development in a city centre, our tailored solutions adapt to your specific needs. We understand that every block has a unique character and a specific set of challenges that require a bespoke management approach.

The Benefits of an Independent Specialist

Many residents feel frustrated by the “faceless” experience of large corporate firms where calls go unanswered and site visits are rare. As dedicated Managing Agents Devon, our approach prioritises visibility and accountability. We conduct regular property inspections across Exeter, Plymouth, and Bristol to identify maintenance issues before they escalate into costly repairs. This proactive stance is central to our philosophy of Leasehold Property Management. You’ll have direct access to experienced directors who provide authoritative advice, ensuring your company remains compliant with all current UK legislation.

Getting Started with Professional Management

Moving away from a landlord-appointed agent can feel complex, but we specialise in making this transition seamless for new rtm boards. We handle the heavy lifting of the handover process, which includes the transfer of financial records, maintenance history, and service charge accounting data. Our team also provides expertise in Freehold Management for those who eventually wish to purchase the building outright. We perform a comprehensive review of all existing service contracts to find cost-saving opportunities for leaseholders whilst improving the standard of work. This ensures your Service Charge Management is both efficient and transparent from the moment we take over.

Protecting the long-term value of your home requires a disciplined approach to Property Management Services. We are here to alleviate the stress of management whilst ensuring your block thrives under your new-found control. If you’re ready to secure professional support for your development, we invite you to contact us for a confidential discussion about your block’s future. Our team is ready to provide the expert guidance you need to manage your property with confidence and clarity.

Taking the Next Step Toward Property Autonomy

Reclaiming control of your building is a powerful way to protect your investment and improve your daily living standards. The legislative landscape in 2026 has made the process more accessible than ever, particularly for mixed-use developments and smaller blocks. Whilst the legal right is absolute, the transition demands a disciplined approach to financial reporting and property compliance to avoid personal liability for directors. Success lies in balancing your new-found authority with professional, reliable oversight.

Winfields Block Management acts as a steady partner for leaseholders across Devon and the South West. As independent specialists, we offer a proactive and transparent management style that national firms often struggle to replicate. Our expertise in Section 20 consultations and complex statutory compliance ensures your development remains safe and well-maintained from the very first day of your takeover. We understand the local market and the specific needs of residents in our region. Contact Winfields Block Management for expert rtm advice to discuss how we can support your transition. You’ve worked hard to gain control of your property; now let us help you manage it with confidence.

Frequently Asked Questions

What is the Right to Manage (RTM) and how does it work?

The Right to Manage is a statutory power that allows leaseholders to take over the management of their building from the landlord. It works as a “no-fault” right, meaning you don’t need to prove the current management is poor to succeed. Once the rtm process is complete, the leaseholders’ company assumes responsibility for all management functions, including maintenance, insurance, and service charge collection, whilst the landlord retains the freehold ownership.

Does my block qualify for the Right to Manage?

Your block qualifies if it’s a self-contained building or part of a building, and at least two-thirds of the flats are held by long leaseholders. Additionally, at least 50% of the flats must be members of the company. Under the 2026 legislative updates, mixed-use blocks now qualify if the non-residential part doesn’t exceed 50% of the total internal floor area, making the right accessible to many more developments.

How much does the RTM process cost in the UK?

Costs typically include company formation fees, land registry disbursements, and professional fees for serving the required legal notices. A significant change in the Leasehold and Freehold Reform Act 2024 means that the company is no longer automatically liable for the landlord’s legal costs. This reform has drastically reduced the financial barrier for leaseholders looking to take control of their property management across the South West and the wider UK.

Can a landlord refuse a Right to Manage claim?

A landlord cannot refuse the claim simply because they wish to keep management; they can only object on specific technical grounds. This is done by serving a counter-notice within the statutory one-month period. If the landlord disputes the claim, the matter is referred to the First-tier Property Tribunal for a final decision. However, if the claim is legally sound and the criteria are met, the landlord must comply.

Do we have to manage the building ourselves after RTM?

No, you don’t have to handle the daily maintenance or accounting yourself. Whilst the rtm company directors are legally responsible, they have the power to appoint a professional managing agent to handle the day-to-day operations. This is often the preferred route for directors in Devon who want to maintain high standards of Property Compliance and Service Charge Management without the personal burden of the administrative labour.

What are the legal duties of an RTM company director?

Directors of an RTM company have the same legal responsibilities as any other company director, including fiduciary duties to act in the company’s best interest. You’re responsible for ensuring the building meets all health and safety regulations, managing the service charge budget transparently, and overseeing major works. Because these duties carry personal liability, many boards seek professional support to ensure they remain fully compliant with current UK legislation.

How long does the Right to Manage process take from start to finish?

The process typically takes between four and six months from the formation of the company to the final acquisition date. This timeline includes the one-month period for the landlord to respond to the Notice of Claim and a further three months for the actual handover of management functions. If the landlord challenges the claim through a tribunal, the process may take longer, depending on the complexity of the legal dispute.

Can we change our managing agent once we have the Right to Manage?

Yes, the company has the absolute authority to choose, appoint, or change its managing agent at any time. This is one of the primary benefits of taking control, as it allows you to move away from landlord-appointed agents who may not prioritise your interests. You can select a local, independent specialist who offers better transparency, more frequent site inspections, and a more responsive service for your specific community.