# Right to manage (RTM)

The legal right of qualifying leaseholders of flats in England and Wales to take over the management of their building from the landlord, through a company they control, without having to prove the landlord was at fault or buy the freehold.

Also called: RTM, the right to manage.

The right to manage was created by the Commonhold and Leasehold Reform Act 2002. Leaseholders who qualify set up an [RTM company](https://runyourblock.co.uk/glossary/rtm-company), invite the other leaseholders to join, and serve a [claim notice](https://runyourblock.co.uk/glossary/claim-notice) on the landlord. If the claim succeeds, the company takes over the landlord's management functions on the [acquisition date](https://runyourblock.co.uk/glossary/acquisition-date).

## What changes, and what doesn't

- **The RTM company takes over** services, repairs, maintenance, improvements, insurance and management under the leases (s.96).
- **The landlord keeps** the freehold, the ground rent, and the right to forfeit a lease (s.96(6)(b)).
- **Leaseholders keep** their leases, with exactly the same terms.

## Good to know

- No compensation is paid to the landlord.
- Since 3 March 2025, the RTM company is generally not liable for the landlord's costs of the claim. A tribunal can only order costs if the claim ends and the company acted unreasonably (ss.87A–87B, added by the Leasehold and Freehold Reform Act 2024).
- Buildings may now have up to 50% non-residential floor space, up from 25% before March 2025.

See our guide [What is the right to manage?](https://runyourblock.co.uk/guides/right-to-manage/what-is-right-to-manage).

## Related terms

- [RTM company](https://runyourblock.co.uk/glossary/rtm-company)
- [Qualifying tenant](https://runyourblock.co.uk/glossary/qualifying-tenant)
- [Claim notice](https://runyourblock.co.uk/glossary/claim-notice)
- [Acquisition date](https://runyourblock.co.uk/glossary/acquisition-date)
- [Collective enfranchisement](https://runyourblock.co.uk/glossary/collective-enfranchisement)

## Sources

- [Commonhold and Leasehold Reform Act 2002, Part 2 Chapter 1](https://www.legislation.gov.uk/ukpga/2002/15/part/2/chapter/1)
- [GOV.UK: Right to Manage: a guide for landlords](https://www.gov.uk/right-to-manage-a-guide-for-landlords)

---

Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/right-to-manage