Right to Manage (RTM) has been part of leasehold law for more than two decades, but recent reforms are pushing it higher up the agenda for managing agents in England and Wales. Under RTM, leaseholders can take over the management of their block from the freeholder by forming an RTM company. For many managing agents, this raises an important question: should you bring these blocks into your portfolio?
RTM at a glance:
- RTM is set to grow. Legal reforms in 2024 and 2025 have removed major cost barriers and expanded eligibility, so you can expect more leaseholders to pursue RTM.
- Expect higher standards. RTM boards are usually formed due to dissatisfaction with previous management, so transparency, responsiveness and priority service will be central to their expectations.
- Risks and rewards vary. Some RTM boards can be politically complex and high maintenance, while others are proactive and collaborative, making them strong long-term clients.
- Due diligence is essential. Assess the block’s size, governance, finances and director dynamics before taking them on.
- Success relies on clarity. Strong communication, realistic expectations, and technology that supports visibility are the foundations of a productive RTM relationship.
RTM is becoming more accessible
The Leasehold and Freehold Reform Act 2024, which received Royal Assent on 24 May 2024, has changed the RTM landscape. Previously, leaseholders pursuing RTM had to cover both their own legal costs and those of the freeholder, making the process expensive and often prohibitive. That barrier has now been removed, making RTM significantly more affordable.
Eligibility has also widened. In March 2025, the non-residential limit for RTM qualification across England and Wales increases from 25 % to 50 %, bringing more mixed-use blocks into scope, including those that have been previously excluded. As a result, RTM instructions are likely to become more common, and you may be approached by RTM boards more often in the years ahead.
Why do leaseholders choose RTM?
Taking on RTM is not a decision leaseholders make lightly. It often follows long-standing dissatisfaction with how their block has been managed. By the time they approach an agent, expectations are already high. They want better visibility of service charges, faster responsiveness on repairs, and the reassurance that their block will be treated as a priority.
The governance structure of the RTM company adds another layer. In smaller blocks, directors may find it easier to reach agreement. In larger blocks, however, more directors and leaseholders often mean more varied financial situations, personalities, and priorities — all of which can create political divides.
Recognising these dynamics is essential before deciding whether or not to bring an RTM block into your portfolio.
Balancing the risks and rewards
There are valid reasons why many firms hesitate before taking on RTM clients. They can demand more time, more communication, and closer financial reporting. Internal disagreements between directors can quickly escalate and, if not carefully managed, can draw you into disputes.
On the other hand, many RTM boards are proactive and highly engaged. They care deeply about the performance of their block and often make strong long-term partners. As MoneyWeek highlights, recent reforms have “shifted the balance of power further towards leaseholders”, and for firms with the right processes and systems, that shift can create real opportunities.
Five questions to ask before taking on an RTM:
- How large is the block, and how many directors will you be working with?
- Are the directors aligned on their goals, or are there signs of tension already?
- What level of reporting and responsiveness do they expect?
- What is the financial position of the block, particularly around service charges and arrears?
- Do you have the systems and capacity to meet their expectations without stretching your team?
The answers to these will help you decide whether the block is viable for your portfolio. Having reliable systems in place for arrears oversight, service charge recovery and financial reporting can make this assessment (and the ongoing management) much more straightforward.
Setting the relationship up for success from the start
If you decide to take on an RTM block, the first few months set the tone. Clarity is everything: define your role, outline how communication will work, and agree realistic timescales for reporting and decision-making.
This is where technology becomes essential. Proptimo gives you a single point of truth across finances, compliance and communication, making it easier to deliver the transparency and responsiveness that RTM boards expect. Real-time dashboards, audit-ready reporting and accessible portals give directors visibility without adding to your workload.
By embedding transparency into your processes from day one, you not only meet leaseholder expectations but also protect your team’s time. The result is a partnership built on trust, rather than constant firefighting.
Above all, take the time to understand why the RTM was formed. Listening to the motivations of directors helps tailor your approach and build the collaborative relationships that turn challenging instructions into long-term, stable contracts.
Positioning your business for RTM growth
The changes brought in by the Leasehold and Freehold Reform Act 2024 are still being phased in, with further detail to come as secondary legislation is introduced.
What is clear already is that RTM will play a bigger role in the sector. As barriers are removed, more leaseholders will choose this route, and managing agents will need to decide which blocks to take on and how to manage them successfully.
While RTM blocks can be demanding, they can also become some of the most engaged and rewarding clients in your portfolio. By weighing up the risks and rewards, carrying out due diligence, and embedding transparency from the outset, you can make informed decisions about when to proceed.
With Proptimo, you have the systems and oversight to manage RTM blocks confidently. By centralising finances, compliance and resident engagement, the platform allows you to deliver the transparency leaseholders expect while keeping control of your workload.
Book a demo to see how Proptimo makes oversight clearer, reduces admin, and gives you a stronger foundation for building lasting client relationships.
