After successfully completing the Right to Manage (RTM) process, the RTM Company—formed by the leaseholders—will assume full responsibility for the management of our building. While RTM Company will provide guidance and support during the transition phase, the ongoing management will be handled directly by the RTM Company, with the assistance of a professional management company for day-to-day operations.
1. Management Duties
Upon completing the RTM process, the RTM Company will legally take over the management of the building. This includes responsibilities such as overseeing maintenance, arranging repairs, managing service charges, and ensuring legal compliance. To manage these duties effectively, the RTM Company will engage a professional management company to handle the building’s daily operations, allowing the leaseholders to focus on strategic decisions and oversight.
2. Role of RTM Company During Transition
The consultancy will play a crucial role during the transition to RTM, guiding us through the necessary legal and procedural steps. Their responsibilities will include:
Setting Up the RTM Company: Assisting in the formation of the RTM Company as a legal entity.
Serving Legal Notices: Ensuring that all required notices are properly drafted, served, and managed.
Navigating Legal Challenges: Providing support if the freeholder challenges the RTM claim, including representation in any tribunal proceedings.
Coordinating the Handover: Managing the smooth transition of management responsibilities from the freeholder to the RTM Company.
Once the handover is complete, the consultancy will conclude its involvement, having ensured that the RTM Company is fully equipped to manage the building effectively.
3. Engaging a Management Company
Following the transition, the RTM Company will appoint a professional management company to take on the daily operations of the building. This management company will be responsible for:
Maintenance and Repairs: Handling routine maintenance, emergency repairs, and ongoing upkeep of the building.
Service Charge Management: Collecting and managing service charges, ensuring that funds are allocated appropriately.
Contractor Management: Selecting and overseeing contractors for services such as cleaning, landscaping, and security.
Financial Reporting: Preparing and providing detailed financial reports to the RTM Company, ensuring transparency and accountability.
Compliance Management: Ensuring that the building meets all legal and regulatory requirements, including health and safety standards.
4. Decision-Making and Oversight
While the management company will handle daily tasks, the RTM Company will retain ultimate control over major decisions. This includes approving budgets, making decisions about significant repairs or improvements, and selecting contractors for large projects. The RTM Company will hold regular meetings to discuss these matters, ensuring that all leaseholders have a voice in the decision-making process.
5. Financial Oversight
The RTM Company will have oversight of the building’s finances, with the management company providing regular financial reports. This ensures that service charges are used efficiently and that all financial activities are transparent to the residents. The RTM Company will be responsible for approving budgets and expenditures, ensuring that the building’s funds are managed wisely.
6. Legal Responsibilities
As the entity legally responsible for the building’s management, the RTM Company must ensure compliance with various legal obligations, including maintaining appropriate insurance, adhering to health and safety regulations, and fulfilling data protection requirements. While the management company will assist with these tasks, the RTM Company will ultimately be accountable for meeting these obligations.
7. Ongoing Communication
Effective communication between the RTM Company, the management company, and the residents is vital to the success of our self-management. The management company will provide regular updates to the RTM Company and residents, and will be available to address any concerns. The RTM Company will facilitate open communication channels, encouraging residents to share feedback and participate in the management process.