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The RTM process, step by step

A typical RTM claim takes four to six months from first conversation to taking over management. Here is the full journey under the Commonhold & Leasehold Reform Act 2002.

  1. 1

    Check your building qualifies

    RTM is a no-fault right under the Commonhold & Leasehold Reform Act 2002 — you don't need to prove bad management, but the building must meet statutory criteria.

    • The building must contain at least two flats.
    • At least two-thirds of the flats must be let to qualifying tenants (long leases originally granted for more than 21 years).
    • No more than 25% of the internal floor area (excluding common parts) may be non-residential.
    • Converted buildings with four or fewer flats are exempt if the freeholder or an adult family member lives there.
  2. 2

    Gauge interest and gather participants

    Speak to your fellow leaseholders early. Membership of the RTM company must include at least half of the qualifying tenants before a claim can be served.

    • If there are only two qualifying tenants, both must participate.
    • Keep a simple record of who is interested, committed, and undecided.
    • Agree early who will act as directors of the RTM company and how costs will be shared.
  3. 3

    Set up the RTM company

    The claim is made by a dedicated RTM company limited by guarantee, registered at Companies House with prescribed articles of association.

    • The company name must end with "RTM Company Limited".
    • Use the prescribed articles set out in the RTM Companies (Model Articles) (England) Regulations 2009.
    • Every qualifying tenant is entitled to be a member; the landlord also has a right to membership once RTM is acquired.
  4. 4

    Serve the claim notice

    The RTM company serves a formal claim notice (section 79) on the freeholder and any management party, stating when it intends to take over management.

    • Before the claim, a notice inviting participation must be served on all qualifying tenants who haven't joined.
    • The claim notice must give the landlord at least one month to respond with a counter-notice.
    • The acquisition date stated must be at least three months after the counter-notice deadline.
    • Errors in notices are a common cause of failed claims — check the prescribed forms carefully.
  5. 5

    Handle any counter-notice

    The landlord may serve a counter-notice (section 84) disputing the claim — usually on eligibility grounds.

    • If no counter-notice is served in time, the right is acquired automatically.
    • If the claim is disputed, the RTM company can apply to the First-tier Tribunal (Property Chamber) for a determination.
    • The RTM company is liable for the landlord's reasonable costs of the claim (but not tribunal costs if it wins).
  6. 6

    Acquire management on the determination date

    On the acquisition date the RTM company takes over the landlord's management functions — repairs, maintenance, insurance, and service charges.

    • The landlord must hand over uncommitted service charge funds.
    • Management functions transfer, but the freehold itself does not — ground rent remains payable.
    • Approvals under leases (e.g. alterations, subletting) are handled by the RTM company, with notice to the landlord.
  7. 7

    Transition into management

    Line up the practical handover before the acquisition date so the building never goes unmanaged.

    • Arrange buildings insurance from day one — cover must not lapse.
    • Review and novate or replace existing maintenance and service contracts.
    • Open a bank account for service charges and set the first budget.
    • Collect records: service charge accounts, leases, compliance certificates, contractor details.

Not sure whether your building qualifies? Start with step one.

Check eligibility