Introduction The Right To Manager or RTM company provides a means for the flat owners within a common premise to manage their own affairs in relation to the upkeep and management of their flats. The RTM is a provision of the Commonhold and Leasehold Reform Act 2002 and enables the flat owners to become members of a Limted (not for profit) company that can exercise control over the insurance, repairs, service charges and general maintenance of their premises.

What do we need to setup an RTM Company?

• The building must include a minimum of two flats.
• At least 66% of the building must be let to qualifying tenants.
• If the property is partly used for commercial reasons then no more than 25% should occupy the total floor space of the premises.
• To qualify membership each tenant must be a leaseholder whose lease was originally granted for an original term of more than 21 years.
• The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building.

Setting up the RTM Company