Right to Manage
You may think that you are stuck with your freeholder's choice of managing agent, but if at least 50% of the lessees agree and you follow the correct procedures, The Common-hold and Leasehold Reform Act 2002 allows you to take on the Right to Manage (RTM) and take over the running of the block.
This is done by serving the right notices on the Landlord/Freeholder and forming a Right to Manage Company (the RTM Company) to take on the management functions and responsibilities under the leases
As with any company, a board of Directors made up of the residents, will need to be appointed to oversee and control the company. These Directors have the legal duty and responsibility to ensure the Company is run properly following and complying with the myriad of legal procedures and ensuring the block or building is maintained properly and cost-effectively. Appropriate insurance cover must be arranged and kept up to date; full accounts must be kept and audited annually; residents' AGMs must be held. Then there is the day-to-day running of the block and organising the maintenance and upkeep of the building. It may also be necessary to negotiate with neighbours even to the extent of ‘chasing’ unpaid service charge bills.
It is quite common for Directors of an RTM to appoint a specialist Managing Agent to take on the majority of the responsibilities and ensure all services are delivered at the best prices. While control and high-level decision-making remain with the RTM, the managing agent performs all of the day-to-day functions.
Find out more about our services here:
We offer a complete range of services to help with all of your property needs
You can benefit from Martyn Gerrard’s 55+ years of experience and access all the services you may need on your property journey, all under one roof.
Whatever you need, we can help, with practical guidance and straightforward advice from experts you can trust, available to help you every step of the way.
