What is RTM?
Right To Manage
What is Right To Manage?
Thanks to The Commonhold and Leasehold Reform Act 2002 this legislation provides an opportunity for flat owners in a block of flats to run their own affairs. They can make their own decisions about the management and upkeep of their block which includes; the insurance, repairs, service charges levels etc. by means of a Right To Manage - 'RTM'.
The landlord's consent is not required as such, though he/she needs to be made aware that the RTM company will be taking management.
RTM is a ‘no-fault’ application, meaning there is no need to prove any mismanagement by the landlord or the incumbent managing agent. Basically it means that the lessees use the RTM Company to gain control and, in a number of cases, will no doubt help you make considerable savings on; repairs, maintenance, management fees, insurance premiums etc, and possibly enhance the asset value of your property.
Where the landlord has collected service charges already in advance, and is holding these unspent monies, he is under an obligation to hand over all these funds, including any reserve account or sinking fund, to the benefit of the RTM Company. So, any unspent monies that you have paid already is returned to you all collectively.
The RTM takes on the Management functions and these functions are with respect to the overall; repairs, maintenance, services, insurance and management.
These would usually include;
• Redecoration and maintenance of the structure of the building and the common parts such as lighting, cleaning, gardening etc. where appropriate
• Insuring the building and lift (if any)
• Collection of Service Charges, accounting
• Complying with statutory requirements relating to the management
• The day-to-day running & management of the block
Most leases contain provisions requiring the consent of the landlord of which can include; sub-letting, assigning the lease and making alterations to the flat. The power to issue such approvals passes to the RTM company, although the company must keep the landlord informed and give notice to the landlord.
The landlord's consent is not required as such, though he/she needs to be made aware that the RTM company will be taking management.
RTM is a ‘no-fault’ application, meaning there is no need to prove any mismanagement by the landlord or the incumbent managing agent. Basically it means that the lessees use the RTM Company to gain control and, in a number of cases, will no doubt help you make considerable savings on; repairs, maintenance, management fees, insurance premiums etc, and possibly enhance the asset value of your property.
Where the landlord has collected service charges already in advance, and is holding these unspent monies, he is under an obligation to hand over all these funds, including any reserve account or sinking fund, to the benefit of the RTM Company. So, any unspent monies that you have paid already is returned to you all collectively.
The RTM takes on the Management functions and these functions are with respect to the overall; repairs, maintenance, services, insurance and management.
These would usually include;
• Redecoration and maintenance of the structure of the building and the common parts such as lighting, cleaning, gardening etc. where appropriate
• Insuring the building and lift (if any)
• Collection of Service Charges, accounting
• Complying with statutory requirements relating to the management
• The day-to-day running & management of the block
Most leases contain provisions requiring the consent of the landlord of which can include; sub-letting, assigning the lease and making alterations to the flat. The power to issue such approvals passes to the RTM company, although the company must keep the landlord informed and give notice to the landlord.
The Process
We have been speaking in confidence to RTMF who are specialists in completing Right to Manage applications.
RTMF have carried out a site assessment and have created a strategy that should ensure a successful Right To Manage application despite the complications of shared services and the car park that links five of the buildings together.
We are looking to organsie an information evening hosted by RTMF who will do a presentation before taking questions.
We will update members of this date as soon as we have one set.
We will update members of this date as soon as we have one set.