It is estimated that the process of going to RTM can take 4-6 months. The consultancy we have spoken to estimates 5 months from the date 50% of leaseholders are in support. Taking that into account we hope to complete the process about around by the end of financial year with the current managing agent - 31st of March 2025.
As we move forward with the Right to Manage (RTM) process, it’s important to understand the key next steps and how each resident can contribute to a successful transition. In all these steps we are involving a specialised consultancy with wealth of experience and for day to day management, a management company will be contracted. Here’s what we need to do next:
1. Forming the RTM Company
The first step is to officially form the RTM Company. We will need to gather a group of leaseholders who are committed to participating in the RTM process. This involves:
Recruiting Participants: Ensuring that at least 50% of the flats are represented by leaseholders who are willing to join the RTM Company.
Registering the Company: Setting up the RTM Company as a legal entity, with the help of the consultancy.
2. Serving Notices
Once the RTM Company is formed, we will need to serve the necessary legal notices:
Notice of Invitation to Participate: This notice will be sent to all qualifying leaseholders, inviting them to join the RTM Company.
Claim Notice: This formal notice will be served to the freeholder to inform them of our intention to take over the management of the building.
3. Engaging with the Freeholder
After serving the Claim Notice, we will await a response from the freeholder. They may accept the claim, or in some cases, challenge it:
Acceptance: If the freeholder accepts the RTM claim, we will begin the transition process.
Challenge: If the claim is contested, we may need to address any disputes, possibly through a tribunal. The consultancy will provide guidance and support in handling any challenges.
4. Transition Planning
Once the RTM claim is accepted, we will prepare for the handover of management responsibilities:
Appointment of a Management Company: Select a professional management company to handle the day-to-day operations of the building.
Handover Process: Work with the consultancy to ensure a smooth transition of management duties from the freeholder to the RTM Company.
5. Financial and Administrative Preparation
We will need to set up financial and administrative systems for the RTM Company:
Budget Planning: Prepare an initial budget for the building’s management and set up financial accounts.
Service Charge Collection: Establish a system for collecting and managing service charges from residents.
6. Communication and Involvement
Ongoing communication and involvement are crucial for a successful RTM process:
Regular Updates: We will provide regular updates to all residents on the progress of the RTM process and any upcoming meetings.
Resident Meetings: Schedule meetings to discuss key decisions, gather feedback, and ensure that everyone is informed and involved.
7. Official Launch
Once the transition is complete, we will officially take over the management of the building:
Management Commencement: Begin working with the management company to implement the day-to-day management plan.
Monitoring and Oversight: The RTM Company will start overseeing the management company’s performance and making strategic decisions regarding the building.
8. Continuous Improvement
We will continually seek ways to improve the management of our building:
Feedback Mechanism: Implement a system for residents to provide feedback and suggest improvements.
Review and Adjust: Regularly review management practices and make adjustments as needed to ensure the best outcomes for the community.
If you have any questions or need further information about any of these steps, please feel free to contact [RTM Company Contact Person] at [Contact Information]. Let’s work together to make this transition smooth and successful!