Right to Manage is the right of leaseholders to form a company to take responsibility for the management of their block.
If you are a leaseholder, you may be interested in forming a Right to Manage company.
As a manager of the building, you will be responsible for all the decision making in regards to the budgets, the upkeep, repairs and overall management of the services relating to the building.
An RTM company must be limited by guarantee and have specific objects in its Articles of Association. One of the objects must be an acquisition and exercise of the RTM premises.
Who can become a member of an RTM company?
- There must be at least 2 members.
- All qualifying tenants are entitled to become members.
- The landlord also has the right to become a member.
- RTM companies only require 1 director.
What do I need to be eligible for an RTM company?
- At least 50% of your tenants must agree with the decision to become an RTM property.
- At least 75% of the property needs to be used for residential purposes.
- At least 66% of the owners with leases must have at least 21 years left on their lease.
What are the responsibilities as a director of a Right to Manage company?
- The same as an Ltd direct with regards to HMRC and Companies house filling.
- Responsible for the maintenance and insurance of the building.
- Collect tenant revenues.