What Happens After Right to Manage?

The Acquisition Date

The acquisition date is stated in the Section 79 claim notice. It must be at least 3 months from the date the notice is served on the freeholder.

On the acquisition date, the right to manage transfers to the RTM company. The previous managing agent (if any) loses their management functions.

What Transfers to the RTM Company?

Management functions include:

• Service charge collection and budgeting
• Appointing and managing contractors
• Building insurance (depending on lease wording)
• Repairs and maintenance
• Managing common areas
• Health and safety compliance

Existing Contracts

Existing contracts for services (cleaning, gardening, lifts, etc.) may transfer to the RTM company or may need to be renegotiated.

The RTM company can choose to continue with existing contractors or appoint new ones.

Service Charge Funds and Records

The outgoing managing agent or landlord must hand over service charge funds, reserve funds and financial records.

The RTM company should request a full handover reconciliation before the acquisition date.

Choosing a Managing Agent

The RTM company can choose to:

• Appoint a professional managing agent
• Self-manage the building
• Hybrid approach (RTM company handles some tasks, managing agent handles others)

Most RTM companies appoint a managing agent to handle day-to-day management professionally.

Ongoing RTM Company Responsibilities

The RTM company has ongoing statutory responsibilities including:

• Filing annual accounts and confirmation statements at Companies House
• Holding AGMs and managing membership
• Budgeting and financial management
• Compliance with health and safety regulations

RTM is not the end of the process. It is the start of leaseholder-controlled management.