Right to Manage Explained: Pros and Cons

The Right to Manage (RTM) is a legal provision in the UK that allows leaseholders to take over the management of their building without having to prove any fault with the existing management. This right is significant for tenants who want more control over their living environment. In this blog, we will delve into what the Right to Manage is, its advantages, and its disadvantages, providing a comprehensive understanding of the Right to Manage.

Understanding Right to Manage

The Right to Manage means that leaseholders in a block of flats can form a management company and assume responsibility for the management of their building. This can cover various aspects, including maintenance, insurance, and service charges. The RTM process allows tenants to take control without needing to buy the property’s freehold.

Pros of the Right to Manage

1. Increased Control
   One of the most significant advantages of the Right to Manage is the increased control it gives to leaseholders. By managing the property themselves, tenants can make decisions that directly affect their living conditions, including maintenance schedules and service charge levels.
2. Improved Communication
   Understanding the Right to Manage facilitates better communication between tenants and the management company. Leaseholders can address their concerns directly without needing intermediaries, leading to quicker resolutions of issues.
3. Potential Cost Savings
   When leaseholders manage the property, they have the opportunity to reduce management costs. This could mean lower service charges, as they can choose contractors and negotiate better deals, ultimately saving money for all tenants involved.
4. Personalized Services
   With the Right to Manage, tenants can tailor services to meet their specific needs and preferences. They can select management teams that align with their values, ensuring that the services provided are up to their standards.

Cons of the Right to Manage

1. Initial Setup Challenges
   While the Right to Manage explained provides many benefits, the initial setup can be challenging. Forming a management company requires time, effort, and agreement among leaseholders, which can sometimes lead to disputes.
2. Ongoing Responsibilities
   Taking on the management of a property comes with significant responsibilities. Leaseholders must ensure that all legal obligations are met, including health and safety regulations, which can be daunting for those without experience in property management.
3. Potential for Disagreements
   Once the Right to Manage is in place, differing opinions among leaseholders can lead to disagreements about management decisions. This can create tension and affect the community atmosphere in the building.
4. Costs of Management
   While there is potential for cost savings, managing a property also incurs costs. Leaseholders may need to hire professionals for certain tasks, which could offset the savings they anticipated.

Conclusion

The Right to Manage offers leaseholders an excellent opportunity to take control of their living environment. However, it is essential to weigh the pros and cons carefully. By understanding the Right to Manage, tenants can make informed decisions about whether this path is right for them. Engaging with the process can lead to a more satisfying and personalized living experience, but it requires commitment and cooperation among all leaseholders.

In conclusion, the Right to Manage explained gives leaseholders a powerful tool to enhance their quality of life within their homes. By considering the advantages and challenges associated with it, tenants can decide if pursuing the Right to Manage aligns with their goals for a better living environment.