RTM does not necessarily mean self-management.
The RTM company can decide to carry out day to day management itself, or it could delegate this function to a managing agent. The managing agents will be instructed by the RTM company, so decisions on such things as major works could still be taken by the RTM company, if they wish.
Dissatisfaction with the present managing agent may result more from the leaseholders’ feelings of impotence in the decision-making process than from any real shortcomings in the manager’s abilities. The same managing agent, working to the instructions of the RTM company, may deliver a satisfactory service without the upheaval of a change of management.
- Leaseholders will manage the building through a company and will need to learn about company procedures or to employ someone to advise them on such matters.
- People must be found to be officers of the RTM company, not just initially, but on an on-going basis, the officers will have all the normal responsibilities of company directors as well as of landlords of residential property;
- The RTM company will be as vulnerable to criticism from lessees and residents as was the landlord/ managing agent
- There will need to be regular (but not necessarily frequent) meetings;
- There will be many technical matters to be dealt with, such as budgets and accounts, specifications and legal requirements;
- The company and its directors will be legally required to comply with a wide range of company, housing and health and safety law.
Having said all this, the right to manage is an opportunity for those owning most of the value in the building – the leaseholders – to run their own affairs and to make their own decisions about the management and upkeep of their flats.
The right relates to a building, so, in an estate of separate blocks, each block would need to qualify separately and an individual RTM notice served. In the case of an estate of flats under the same management, it would be sensible to take over the management of the whole estate, but this would have to be accomplished by application in respect of each separate block.