What Are the Benefits & Challenges of Right to Manage for Leaseholders?

For many leaseholders, the idea of having more control over how their building is managed is both appealing—and, at times, a little uncertain. If you’ve come across the term Right to Manage (RTM), you’re likely exploring whether it could offer a better way to oversee your property. It’s a legal right that allows leaseholders to take over the management of their building without needing to purchase the freehold. On paper, it sounds straightforward. In practice, it comes with both advantages and responsibilities that are worth understanding before moving forward.

What Is Right to Manage & How Does It Work?

Right to Manage is a legal provision under UK law that allows qualifying leaseholders to form a company and take over the management of their building. This means responsibility for things like:

• Maintenance and repairs 
• Insurance arrangements 
• Service charges 
• Day-to-day management decisions 

Importantly, the freeholder still owns the building but leaseholders gain control over how it is managed. The process involves setting up an RTM company, meeting eligibility criteria, and following a formal procedure to transfer management responsibilities.

Why Do Leaseholders Consider Right to Manage?

In many cases, the motivation comes from dissatisfaction with current management. This could include:

• High service charges 
• Lack of transparency 
• Poor communication 
• Delays in maintenance 

Right to Manage offers an alternative—one where leaseholders have a direct say in how decisions are made. It’s about moving from being passive contributors to active participants in managing the property.

What Are the Key Benefits of Right to Manage?

There are several reasons why leaseholders choose to pursue RTM.

Greater control over decisions

Leaseholders can decide how the building is managed, rather than relying on an external managing agent appointed by the freeholder.

Improved transparency

Financial decisions, service charges, and maintenance plans become more visible and easier to understand.

Potential cost efficiency

While not guaranteed, having control over contracts and services can lead to more competitive pricing.

Faster response to issues

Decisions can often be made more quickly, without going through multiple layers of approval.

What Challenges Should Leaseholders Be Aware of?

While the benefits are appealing, RTM also comes with responsibilities. One of the most common misconceptions is that it simplifies everything. In reality, it shifts responsibility. Managing a building involves:

• Legal obligations 
• Financial oversight 
• Ongoing maintenance coordination 
• Compliance with regulations 

Without the right structure or support, this can become complex.

Does Right to Manage Save Money?

This is often one of the first questions leaseholders ask. The answer is: it depends. While RTM can reduce certain costs by allowing leaseholders to choose their own contractors or managing services, it does not eliminate expenses. There are still costs involved in:

• Maintenance 
• Insurance 
• Professional services 

Savings are possible, but they’re not automatic. The focus should be on value and control, rather than cost alone.

What Responsibilities Come with Managing Your Own Building?

Taking on RTM means taking on responsibility. This includes ensuring that the building is:

• Properly maintained 
• Adequately insured 
• Compliant with safety regulations 
• Financially managed 

For many leaseholders, this is where the challenge becomes more apparent. It requires time, organisation, and a clear understanding of what’s involved.

Can You Appoint a Managing Agent After RTM?

Yes, and this is where many leaseholders find a practical balance. Even after gaining the Right to Manage, you can appoint a professional managing agent to handle day-to-day operations. This allows you to retain control over decisions while benefiting from professional expertise. For those exploring structured and professional block management support alongside RTM, you can find more here.

Is Right to Manage the Right Choice for Every Building?

Not necessarily. RTM works best when:

• Leaseholders are willing to be involved 
• There is clear communication among residents 
• Responsibilities are understood and shared 

In buildings where coordination is difficult or interest is limited, managing the process can become more challenging. It’s not just a legal step; it’s a collaborative one.

What Should Leaseholders Consider Before Moving Forward?

Before pursuing RTM, it’s worth taking a step back and assessing the bigger picture. Ask:

• Are enough leaseholders willing to participate? 
• Is there a clear understanding of responsibilities? 
• Is there a plan for managing the building long-term? 

Taking the time to consider these questions helps ensure that the transition is smooth and sustainable.

How Can Right to Manage Improve Long-Term Property Management?

When implemented well, RTM can create a more responsive and transparent management structure. Leaseholders gain the ability to:

• Prioritise maintenance 
• Improve communication 
• Make decisions that reflect their needs 

Over time, this can lead to a better-managed property and a stronger sense of accountability. But the outcome depends on how the process is handled.

Frequently Asked Questions (FAQs)

What is Right to Manage in the UK?

It’s a legal right that allows leaseholders to take over the management of their building without buying the freehold.

Do all leaseholders need to agree for RTM?

No, but a sufficient number must participate to meet legal requirements.

Can you hire a managing agent after RTM?

Yes, many leaseholders appoint professionals to handle day-to-day management while retaining overall control.

Conclusion

Right to Manage offers leaseholders an opportunity to take control of how their building is managed, but it’s not a decision to take lightly.

While the benefits of control, transparency, and potential cost efficiency are clear, they come with responsibilities that require time, organisation, and cooperation. For many leaseholders, the most effective approach is not choosing between control and support but combining both—an approach often supported by specialists such as Plymouth Block Management.

Because in the end, good management is not just about who is in charge; it’s about how well things are handled.