What is a Right to Manage (RTM) company?
A Right to Manage company, or RTM company, is formed by leaseholders to take over management of their building from the landlord. It is one of the main routes to self-management.
What Right to Manage means
Right to Manage is a statutory route that allows qualifying leaseholders to take over the management of their building without having to prove the landlord is at fault. Leaseholders form an RTM company, follow the prescribed process, and the company assumes management responsibilities.
What an RTM company is responsible for
Once management transfers, the RTM company handles the same things a managing agent or freeholder would: insurance, service charges, maintenance, safety obligations and record-keeping. It can appoint a managing agent, or manage directly.
RTM companies and the LPE1
Because it manages the building, an RTM company answers the LPE1 and provides the management pack when a flat is sold — just as an RMC does. Whether qualifying conditions are met, and the detail of the statutory process, are matters on which leaseholders should take proper advice.
Don't want to work through every document by hand? Upload the records you already hold and let Peppercorn One identify the LPE1 answers for you to review.
The eligibility rules and procedure for Right to Manage are set by statute and can be complex; this guide is general information, not legal advice. For your building's position, consult a suitably qualified professional.
Frequently asked questions
- Can an RTM company complete an LPE1?
- Yes. Once it manages the building, an RTM company answers the LPE1 and provides the management pack in the same way as an RMC.
- What is the difference between RTM and RMC?
- An RTM company is formed by leaseholders exercising a statutory right to take over management. An RMC is usually set up when the building is created and named in the leases. Their ongoing responsibilities are similar.
Peppercorn One provides administrative tools and guidance to assist with the preparation of management information. It does not provide legal advice. Users remain responsible for reviewing and approving all information before it is issued.