Right to Manage (RTM) Claims: Tribunal Bundle Preparation Guide

Last updated: March 2026

Quick Answer

Right to Manage (RTM) allows qualifying leaseholders to take over management of their building without proving fault on the landlord's part. The process is governed by Part 2, Chapter 1 of the Commonhold and Leasehold Reform Act 2002. If the landlord serves a counter-notice disputing the claim, you may need to apply to the First-tier Tribunal (Property Chamber) for a determination. Your tribunal bundle should include the RTM claim notice, the counter-notice, the RTM company's articles and membership details, evidence of qualifying conditions, the lease, and a clear statement addressing each ground of objection.

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What Is the Right to Manage?

The Right to Manage is one of the most powerful tools available to residential leaseholders in England. Introduced by the Commonhold and Leasehold Reform Act 2002, it gives qualifying leaseholders the right to take over the management functions of their building — appointing managing agents, setting service charge budgets, commissioning repairs, and making decisions about maintenance — without needing to prove that the current management is deficient.

This is a crucial distinction. Unlike a section 24 application for the appointment of a manager (which requires evidence of management failure), RTM is a no-fault right. You do not need to show that anything has gone wrong. You simply need to meet the qualifying conditions and follow the statutory procedure.

Why Leaseholders Pursue RTM

The motivations are varied but often include:

• Excessive service charges with little transparency about how money is spent
• Poor maintenance standards despite significant annual charges
• Unresponsive managing agents who treat leaseholders as an afterthought
• A desire for control — leaseholders wanting a direct say in how their building is run
• Insurance commissions — where the landlord or managing agent receives undisclosed commissions on building insurance

RTM does not change ownership of the freehold. The freeholder retains their interest, but management passes to the RTM company formed by the leaseholders. It is management, not ownership, that transfers.

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Qualifying Conditions

Not every building qualifies for RTM. The statutory requirements are set out in sections 72 to 77 of the 2002 Act, and they must all be satisfied:

Building Qualifications

RTM Company Requirements

The claim must be made by an RTM company — a private company limited by guarantee, formed specifically for the purpose of exercising the Right to Manage. The RTM company must:

• Have its memorandum and articles of association in the prescribed form
• Have membership open to all qualifying tenants of the building
• Not be a company that has previously made an unsuccessful RTM claim (unless by a different set of leaseholders)

Membership Threshold

On the date the claim notice is given, the RTM company must have as members a number of qualifying tenants equal to at least one half of the total number of flats in the building. So for a block of 20 flats, the RTM company needs at least 10 qualifying tenant members.

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The RTM Claim Process: Step by Step

Step 1: Form the RTM Company

Register a company limited by guarantee with Companies House, using articles of association that comply with the 2002 Act. The model articles prescribed by the RTM Companies (Model Articles) (England) Regulations 2009 provide a useful template.

Step 2: Invite Participation

Before serving the claim notice, the RTM company must give a notice of invitation to participate to each qualifying tenant who is not already a member. This notice (under section 78) must be given at least 14 days before the claim notice and must explain the RTM process, invite membership, and state that the qualifying tenant may join the RTM company.

Step 3: Serve the Claim Notice

The claim notice is served on the landlord (and any other relevant party, such as a management company named in the lease). The claim notice must:

• Be given by the RTM company
• Specify the premises and the flats held by qualifying tenants who are members
• State that the RTM company intends to acquire the right to manage
• Specify the date on which the RTM company intends to acquire the right (the "acquisition date"), which must be at least three months after the counter-notice date

Step 4: Counter-Notice

The landlord has one month from receipt of the claim notice to serve a counter-notice. The counter-notice must either:

• Admit the claim — in which case the right to manage passes on the acquisition date, or
• Deny the claim — specifying the grounds on which it is alleged that the RTM company is not entitled to acquire the right to manage

If no counter-notice is served, the claim is deemed admitted.

Step 5: Tribunal Application (If Disputed)

If the landlord serves a counter-notice disputing the claim, the RTM company must apply to the First-tier Tribunal within two months. Failure to apply within this window means the claim is deemed withdrawn.

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Preparing Your Tribunal Bundle

When a landlord challenges an RTM claim, the tribunal hearing focuses on whether the statutory requirements have been met. Your bundle must therefore demonstrate compliance with every qualifying condition and procedural step.

Core Bundle Contents

Addressing Common Counter-Notice Grounds

Landlords typically challenge RTM claims on procedural or technical grounds. The most frequently raised objections include:

The building does not qualify. The landlord may argue that the premises do not constitute a self-contained building, or that the 25% non-residential limit is exceeded. Your bundle should include clear evidence of the building's layout and the proportion of residential to non-residential floor space.

Insufficient qualifying tenants. If the landlord disputes the membership numbers, include the RTM company's register of members and copies of the relevant leases showing that each member holds a qualifying long lease.

Defective notices. This is one of the most common grounds. The landlord may argue that the claim notice was defective — for example, that it failed to specify the correct parties, omitted required information, or was served on the wrong person. Include copies of all notices exactly as served, together with evidence of service (proof of posting, delivery receipts, or certificates of service).

The RTM company is not properly constituted. The landlord may challenge the formation of the RTM company itself. Include the certificate of incorporation, the articles of association, and evidence that they comply with the prescribed form.

Organise your evidence professionally: BundleCreator.co helps you create indexed, paginated tribunal bundles — ensuring every document is properly referenced and easy for the tribunal to navigate.

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The Tribunal Hearing

What to Expect

RTM tribunal hearings are typically listed for a half day. The panel usually comprises a legally qualified chair sitting alone or with a surveyor member. The hearing is relatively informal compared to court proceedings, but the tribunal will expect both parties to have prepared thoroughly.

The hearing usually follows this structure:

1. Opening — Each party briefly outlines its case
2. Evidence — The tribunal works through the documents and any witness evidence
3. Submissions — Each party makes final submissions on the legal and factual issues
4. Decision — The tribunal may give its decision on the day or reserve it for a written determination

Burden of Proof

The RTM company bears the burden of showing that it has met the qualifying conditions and followed the statutory procedure. However, where the landlord raises specific objections, the practical burden often shifts to the landlord to substantiate those objections with evidence.

Costs

The First-tier Tribunal operates under a general no-costs rule. Each party normally bears its own costs, regardless of the outcome. Costs may be awarded under Rule 13 where a party has acted unreasonably, but this is exceptional.

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After a Successful RTM Claim

Once the right to manage is acquired, the RTM company assumes responsibility for:

• Appointing and supervising managing agents
• Setting service charge budgets
• Commissioning repairs and maintenance
• Arranging buildings insurance
• Enforcing lease covenants (with some limitations)

The landlord retains the right to be consulted on certain matters and to approve assignments of leases where the lease requires it. The freeholder's interest is not affected — they still own the freehold, and ground rent obligations continue.

Practical Considerations

• Handover: The outgoing managing agent must hand over all records, accounts, and funds held on behalf of the leaseholders
• Insurance: The RTM company must arrange buildings insurance from the acquisition date
• Service charge accounts: The RTM company takes over responsibility for demanding and accounting for service charges
• Professional management: Most RTM companies appoint a professional managing agent — the difference is that leaseholders now choose and supervise that agent

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Common Pitfalls in RTM Claims

Serving notices on the wrong parties. The claim notice must be served on every person who is a landlord under a lease of the whole or any part of the premises. Failure to serve all landlords can invalidate the claim.

Getting the membership arithmetic wrong. The one-half membership threshold is calculated against the total number of flats in the building, not just the number of qualifying tenants. Count carefully.

Defective articles of association. If the RTM company's articles do not comply with the prescribed form, the landlord has a ground to challenge. Use the model articles as your starting point and do not deviate without legal advice.

Missing the two-month deadline for the tribunal application. If the landlord serves a counter-notice and you do not apply to the tribunal within two months, the claim is deemed withdrawn. Mark this deadline clearly and act promptly.

Inadequate proof of service. Even if you served every notice correctly, you need to be able to prove it. Use recorded delivery, keep proof of posting, and consider hand-delivery with a witness for critical documents.

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Frequently Asked Questions

How many leaseholders need to be involved in an RTM claim?

The RTM company must have as members at least one half of the total number of flats in the building. So in a building with 10 flats, you need at least 5 qualifying tenant members. They must be qualifying tenants — holders of long leases originally granted for more than 21 years.

Does the landlord have to prove we are not entitled to RTM?

Not exactly. The RTM company must demonstrate that it meets the statutory qualifying conditions. However, where the landlord raises specific objections in a counter-notice, the practical burden shifts to the landlord to substantiate those grounds. The tribunal then determines whether each objection is made out.

Can the landlord block an RTM claim?

The landlord cannot veto an RTM claim. If the qualifying conditions are met and the procedure is correctly followed, the right to manage passes to the RTM company. The landlord's only recourse is to serve a counter-notice identifying specific grounds of challenge, which the tribunal then decides.

How long does the RTM process take?

From forming the RTM company to acquiring the right to manage, the process typically takes four to six months if uncontested. If the landlord disputes the claim and a tribunal hearing is needed, add another three to six months for the tribunal process.

What happens to the existing managing agent when RTM succeeds?

The RTM company takes over all management functions on the acquisition date. The existing managing agent's appointment is effectively terminated (subject to the terms of their management agreement). The RTM company can then appoint a new managing agent of its choice — or, indeed, reappoint the same agent on better terms.

Is there a cost to making an RTM claim?

There is no fee for the tribunal application itself. However, the RTM company will incur costs in formation (Companies House registration), service of notices (postage, recorded delivery), and potentially professional fees if you instruct a solicitor. Many RTM claims are successfully brought without legal representation.

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Prepare Your RTM Tribunal Bundle With Confidence

An RTM claim can transform the management of your building, but only if the statutory procedure is followed precisely. When a landlord challenges your claim, your tribunal bundle is your opportunity to demonstrate — clearly, methodically, and with proper references — that every qualifying condition has been satisfied.

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