The Right to Manage Process Step by Step | YourBuilding

The Right to Manage process has clear statutory stages set out in law. Each stage has rules, timelines and documents attached to it. This guide walks through every step in plain English so you know exactly what to expect before you begin.

How long does the RTM process take?

From the moment you start organising to acquisition day, most RTM claims take between 6 and 12 months. The legal minimum from serving your claim notice to acquiring management is around 4 months - but building support with your neighbours and completing the company formation steps takes time before you get to that point.

The good news is that the process is linear. There are no surprises if you follow the steps correctly.

Step 1 - Check your eligibility

Before anything else, confirm your building qualifies. The key tests are:

• The building must be a self-contained block of flats
• At least two-thirds of flats must be held on long leases (originally over 21 years)
• No more than 25% of the building can be used commercially
• At least 50% of qualifying leaseholders must be willing to participate

If your building fails any of these tests, RTM is not available. Do not skip this step - starting the process without confirming eligibility wastes time and creates legal risk.

Read our full eligibility guide to check your building qualifies.

Step 2 - Build support with your neighbours

RTM is a collective right. You need at least 50% of qualifying leaseholders to participate - so before you form a company or serve any notices, you need to know who is on board.

Start by writing to every leaseholder in the building. Explain what RTM is, why you want to pursue it, and what it would mean for the building. Keep it factual and clear - avoid emotive language about the freeholder at this stage.

Give people time to respond and follow up with anyone who does not reply. Some leaseholders will be tenants of absentee landlords - try to contact the long leaseholder directly if the flat is sublet.

You do not need everyone to be enthusiastic. You just need 50% to be willing to join the RTM company.

Step 3 - Form your RTM company

Once you have enough support, you need to incorporate an RTM company. This is a private company limited by guarantee, formed specifically for the purpose of acquiring and exercising the right to manage.

The RTM company must be incorporated before you can serve any notices. Its articles of association must comply with the prescribed form set out in regulations - you cannot use standard off-the-shelf articles.

Every qualifying leaseholder who wants to participate must be given the opportunity to become a member of the RTM company. You will also need to appoint at least one director - typically one of the participating leaseholders.

YourBuilding generates the correct RTM company documents automatically and guides you through the Companies House filing process.

Step 4 - Serve the participation notices (where required)

Before serving your claim notice, all qualifying leaseholders must be invited to become members of the RTM company. This is done by serving a participation notice on each qualifying leaseholder.

The participation notice must:

• Identify the RTM company
• State the claim notice has not yet been given
• Invite the leaseholder to become a member
• Give at least 14 days for the leaseholder to respond

If a leaseholder does not respond, that does not prevent you from proceeding - it simply means they are not participating. As long as you still have 50% participation after any non-responses, you can move forward.

Step 5 - Serve the claim notice

The claim notice is the formal legal document that starts the RTM clock. It is served by the RTM company on the freeholder - and also on any third party managing the building under a management contract.

The claim notice must contain specific prescribed information including:

• The name and registered address of the RTM company
• The address of the building
• The names of all current members of the RTM company
• A statement that the RTM company intends to acquire the right to manage
• The proposed acquisition date (which must be at least 3 months after the date of the notice)

Getting the claim notice right is critical. A defective notice can be challenged by the freeholder and may invalidate your claim. YourBuilding generates the claim notice automatically using the correct statutory form.

A copy of the claim notice must also be served on every qualifying leaseholder who is not already a member of the RTM company - giving them a final opportunity to join before the acquisition date.

Step 6 - The freeholder's response window

After receiving the claim notice, the freeholder has one month to serve a counter-notice.

A counter-notice can either:

• Admit the claim - in which case RTM proceeds automatically on the acquisition date, or
• Dispute the claim - on the grounds that the RTM company does not qualify or the notice was defective

If the freeholder disputes the claim, the RTM company has two months to apply to the First-tier Tribunal (Property Chamber) for a determination. The Tribunal will consider whether the claim is valid and, if so, RTM will proceed.

If the freeholder does not serve a counter-notice within the one month window, the claim is treated as admitted automatically.

Step 7 - Prepare for acquisition

In the period between serving the claim notice and the acquisition date, the RTM company should be preparing to take over management. This includes:

• Sourcing a managing agent (if you do not intend to self-manage)
• Reviewing existing service contracts - cleaners, lifts, gardeners, security - which will novate to the RTM company on acquisition
• Setting up a service charge bank account
• Arranging building insurance from the acquisition date
• Reviewing the current year's service charge budget

Do not wait until acquisition day to start this preparation. The handover happens quickly and you need to be ready to manage the building from day one.

Step 8 - Acquisition day

On the acquisition date, the right to manage transfers to the RTM company. From this point:

• The RTM company is responsible for all management functions
• Existing service contracts novate automatically to the RTM company
• The freeholder must hand over all relevant information - service charge accounts, insurance documents, maintenance records and contracts

The freeholder retains ownership of the building. They are also entitled to become a member of the RTM company in respect of any flats they own.

What happens after acquisition day?

RTM does not end on acquisition day - it begins. Your RTM company is now responsible for running the building compliantly and in the interests of all leaseholders.

Key ongoing responsibilities include:

• Filing annual accounts and confirmation statements at Companies House
• Collecting service charges in compliance with the Landlord and Tenant Act 1985
• Maintaining the building to the standard required by the leases
• Keeping adequate insurance at all times
• Holding annual general meetings of the RTM company

YourBuilding supports you through the post-acquisition stage as well - helping your RTM company stay compliant and manage the building effectively.

Ready to begin?

The process is manageable when you know what to expect. YourBuilding guides you through every stage - from eligibility check to acquisition day and beyond.

Check if your building qualifies - free eligibility check