The building must be self-contained (or if part of another building, be capable of being redeveloped independently); and must include at least two flats;
At least two-thirds of the flats in the building must be let to 'qualifying tenants'*;
The building can be part-commercial but the non-residential part must not exceed 25% of the total floor area.
A 'qualifying tenant' is a leaseholder whose lease was originally granted for an original term of more than 21 years.
There is no requirement for any past or present residence in the flats, nor any limit on the number of flats which can be owned by one person.
The right to manage may only be exercised by a right to manage company and the members of the RTM company must comprise a sufficient number of qualifying tenants.
The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building although where there are only 2 flats in a building both must participate & be members of the RTM Company