Organization Schema --------------------------------------- --------------------------------- Breadcrumb Schema ..............................

Right to Manage: Everything You Need to Know


Eligibility for Right to Manage



The first stage in the process of forming right to manage company, is to see if your structure qualifies for Right to Manage or not. For starters, at least two-thirds of the flats must be rented to tenants who have had their lease for more than 21 years. Commercial features may be present, however, they must not account for more than 25% of the building's total area.

Right to Manage only applies to a single building. Therefore, in the case of estates, where there are numerous residential blocks, each residential block would require its own RTM firm. Furthermore, in order to truly determine the eligibility for right to manage, the following criteria must be fulfilled;

·         At least 50% of your tenants must agree that becoming an RTM property is a good idea.

·         The property must be used for residential purposes for at least 75% of the time.

·         A minimum of 66 percent of leaseholders must have at least 21 years left on their lease.


Right To Manage Company Formation


The next step is to create a Right To Manage corporation if you've determined that you're eligible. The corporation will be the entity that obtains the Right To Manage and then assumes responsibility for the building's management.

During its incorporation, the Right To Manage firm, like any other company, requires the following:

·         Memorandum of Association – This is a declaration provided and signed by people founding the Right To Manage company that details their purpose to create the busisness.

·         Articles of Association – This document outlines the company's mission.


What are the responsibilities as a director of a Right to Manage Company?


As the building's managers, you'll be in charge of all budget-related decisions, as well as the agent in charge of upkeep, repairs, and overall administration of the building's services.

One of your responsibilities as a Right To Manage firm is to select whether you want to handle the day-to-day administration of the building's services yourself or hire a managing agency instead.

Similar to corporate directors, the Right To Manage firm must designate officers. Also, just like any other corporation, there should be AGM-style meetings where all members may express their opinions on the building's administration.

You'll also have to deal with the difficulties and issues related to neighbours and other tenants. And lastly, directors in a Right To Manage firm must be familiar with the firm's policies, as well as health and safety and housing legislation.