Right to Manage: how leaseholders can take over management of their building

England and Wales · Law checked 24 October 2026 · Not legal advice

The Right to Manage (RTM), in Part 2 of the Commonhold and Leasehold Reform Act 2002, lets qualifying leaseholders take over the management of their building through an RTM company, without proving the landlord did anything wrong and without paying compensation. The landlord keeps the freehold.

Does your building qualify?

A self-contained building (or self-contained part of one) with at least two flats held by qualifying tenants (usually long leaseholders).
Qualifying tenants must hold at least two-thirds of the flats.
Non-residential parts (shops, offices) must be no more than 50% of the internal floor area, up from 25% since 3 March 2025.
Exclusions include some small converted buildings with a resident landlord (four or fewer units) and buildings where a local housing authority is the landlord.

The process, in outline

Set up an RTM company (a company limited by guarantee).
Serve a notice inviting participation on qualifying tenants who aren't yet members.
When members make up at least half the qualifying flats, serve a claim notice on the landlord.
The landlord can admit the claim or serve a counter-notice disputing it; disputes go to the tribunal.
On the acquisition date, the RTM company takes over management functions, including collecting service charges.

Costs after the 2024 Act

Since 3 March 2025, under the Leasehold and Freehold Reform Act 2024, an RTM company and its members generally don't have to pay the landlord's costs of a claim. The tribunal can order costs only in limited cases, such as where the claim ends and the RTM company acted unreasonably.

Things to weigh up

RTM doesn't automatically make the building cheaper to run. Insurance, repairs and fire safety still cost money.
The RTM company must follow the same rules as a landlord: consultation, reasonableness, summaries of rights and so on.
Directors are volunteers, and most RTM companies hire a managing agent.

LEASE has free guidance and prescribed-form information on RTM. A recognised tenants' association can be a good way to organise first.

Questions

Do we have to prove the landlord mismanaged the building?

No. The Right to Manage is a no-fault right. You only need to meet the qualifying conditions and follow the procedure.

Do we pay the landlord's legal costs for an RTM claim?

Since 3 March 2025, generally not. The tribunal can order costs only in limited circumstances, for example where the claim notice is withdrawn and the RTM company acted unreasonably.