Right to manage – how to form an RTM company?
The Commonhold and Leasehold Reform Act 2002 allows you to take your landlord’s management rights by forming your own RTM company. In other words, if you are unhappy with the property owner’s property block management, you can start managing it.
Unfortunately, an individual cannot do that; you need to form an RTM company which will get the right to manage. Here is how you can create an RTM company:
You need to consider the following points when preparing to form an RTM:
- Firstly, you don’t need the landlord’s permission to form the RTM. So, neither the landlord’s authorisation nor a court ruling is necessary.
- Secondly, there is no need to prove that the landlord’s management was bad; the law gives you the right to manage.
- How many leaseholders are on the page?
- The RTM company and its directors must follow various regulations, including employment, real estate, and worker safety.
Finally, the most important point in a similar property block management situation is whether you will manage the block of properties or will the RTM hire a managing agent.
Most successful RTM companies have hired managing agents like Uniq block management, and their block property management was never better.
The conditions to form an RTM company
Please ensure that your RTM meets the following points:
- At least two-thirds of all the apartments or flats must qualify as tenants.
- The commercial area must not be more than 25%.
- If there are ten apartments in the property, for example, at least five of the apartments occupied by qualifying tenants must take part in the action.
- It is important to remember that when there are only two apartments in the building, both tenants must participate in forming the RTM company.