# Residents' management company (RMC)

A company, usually owned by the leaseholders, that is named in the leases as responsible for managing and maintaining the building, whether or not it also owns the freehold.

Also called: RMC, resident management company, flat management company, management company.

RMCs are very common on newer developments. The developer sets one up, names it in every lease (often a "tripartite" lease between landlord, leaseholder and management company), and hands it over to the residents once the flats are sold.

## How it works

- **Membership:** each leaseholder is usually a member or shareholder, and the leases often require a buyer to join when they buy a flat.
- **Duties:** the company's duties come from the leases, typically repairing, insuring and managing the building and collecting service charges. The service-charge rules apply to it in the same way as to a landlord.
- **Directors:** volunteers from among the leaseholders. Many RMCs employ a managing agent; others self-manage.

## Not to be confused with

- A **managing agent**, a business hired to do the work, which people often also call "the management company".
- An [RTM company](https://runyourblock.co.uk/glossary/rtm-company), which gets its powers from the right to manage legislation rather than from the leases.
- A [freehold company](https://runyourblock.co.uk/glossary/freehold-company), although an RMC can own the freehold too.

## Related terms

- [RTM company](https://runyourblock.co.uk/glossary/rtm-company)
- [Freehold company](https://runyourblock.co.uk/glossary/freehold-company)
- [Share of freehold](https://runyourblock.co.uk/glossary/share-of-freehold)
- [Managing agent](https://runyourblock.co.uk/glossary/managing-agent)
- [Deed of covenant](https://runyourblock.co.uk/glossary/deed-of-covenant)

## Sources

- [Companies House: About flat management companies, RTM companies and commonhold associations](https://www.gov.uk/government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations)
- [GOV.UK: Set up a property management company](https://www.gov.uk/set-up-property-management-company)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/residents-management-company