RTM company

An RTM company is the vehicle leaseholders use to claim and then exercise the right to manageRight 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..

The rules it must follow

• It must be a private company limited by guarantee (s.73(2)). Members guarantee a nominal sum rather than owning shares.
• Its name must end with "RTM Company Limited" (or the Welsh equivalent).
• Its articles are set by law: the prescribed model articles apply whether or not the company adopts them.
• There can be only one RTM company for a building (s.73(4)).

Who can be a member

• Every qualifying tenantQualifying tenantFor the right to manage, the leaseholder of a flat under a long lease, which normally means a lease granted for more than 21 years. is entitled to join. The directors check eligibility and register them; they don't "approve" members.
• From the acquisition date, landlords of the building can also join. Since 3 March 2025, landlords' votes are capped at one third of the votes of the qualifying tenants.

Not the same as

An RTM company doesn't own the building. A residents' management companyResidents' 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. is usually named in the leases, and a freehold companyFreehold companyA company owned by the leaseholders of a building that owns the building's freehold, and so is the landlord under the flat leases. owns the freehold. See RTM company, RMC or freehold company?.