After the claim
Managing your RTM company: what happens once you take control
Winning the right to manage your building is a real achievement. Now the day-to-day work begins — and knowing your legal duties from the start is what separates a smooth handover from a painful one.
Check your eligibilityYour legal responsibilities
What an RTM company is legally responsible for once it takes control
From the date of acquisition, your RTM company steps into the shoes of the managing agent — and the freeholder for management purposes. These are not aspirational duties. They are legal obligations under the Commonhold and Leasehold Reform Act 2002, the Landlord and Tenant Act 1985, and your own lease.
The RTM company must arrange and maintain adequate buildings insurance for the block from the acquisition date. Letting it lapse — even briefly — exposes every leaseholder to personal liability.
Service charges must be demanded and held correctly — in a designated trust account — with proper receipts, budgets and year-end accounts. Leaseholders have the right to inspect them.
Common areas, structure and mechanical systems remain your responsibility. You must respond to reported defects in a reasonable timeframe and keep a maintenance record.
Any single item of qualifying works costing more than £250 per leaseholder requires a formal Section 20 consultation before you appoint a contractor. Missing this step can cap your cost recovery.
Your RTM company is a registered company at Companies House. Annual confirmation statements and, where required, accounts must be filed on time. Missed deadlines mean fines and, eventually, compulsory strike-off.
You must enforce and comply with lease obligations — on both sides. Noise, alterations, pets, subletting — if your lease restricts it, you are now the party with authority and the duty to act.
RightToManage.ai provides practical guidance and AI-powered support, not legal advice. For specific legal questions, use our vetted professional partners.
Director duties
What the role actually demands week to week
RTM company directors are volunteer leaseholders, not property professionals — but the law does not distinguish. These are the recurring duties that catch new directors off guard.
- 1 Insurance renewalArrange buildings insurance before expiry each year. Obtain at least two comparable quotes and keep a record of the decision.
- 2 Service charge demandsIssue Section 21 demands before the payment date — with the correct prescribed information attached. A defective demand cannot be enforced.
- 3 Section 20 noticesBefore commissioning any major works, check whether the cost triggers the consultation threshold and, if so, follow the two-stage notice process before appointing anyone.
- 4 Annual accounts and budgetPrepare a service charge budget at the start of each year and provide audited or certified accounts at the end. Leaseholders can challenge both.
- 5 Companies House filingsFile the annual confirmation statement and any required accounts by their due dates. Set reminders — the consequences of missing them escalate quickly.
What goes wrong
Common mistakes new RTM directors make — and how to avoid them
These are the pitfalls that appear most often in tribunal cases and formal complaints involving self-managed blocks of flats. None of them are unusual — they happen when busy volunteers run out of time or don't know what they don't know.
Issuing a defective service charge demand
Forgetting to attach the Landlord and Tenant Act 1985 prescribed information makes the demand unenforceable. Leaseholders can legally withhold payment until it is reissued correctly.
Commissioning works without a Section 20 notice
Skipping the consultation process when the cost exceeds the threshold limits your recovery to £250 per leaseholder, regardless of what the work actually cost.
Letting buildings insurance lapse
Even a short gap in cover can leave the entire building exposed. Renewal reminders are easy to overlook when management is handled informally between neighbours.
Missing Companies House deadlines
The annual confirmation statement and any accounts must be filed on time. Late filing triggers automatic penalties. Persistent failure can lead to compulsory strike-off of your RTM company.
Keeping service charge funds in a personal account
Service charges must be held in trust for leaseholders — not in a director's personal or business account. This is a statutory requirement, not best practice.
No written maintenance records
Without written records, you cannot demonstrate that the building has been properly maintained. This matters at tribunal, when selling a flat, and when renewing insurance.
The volunteer burden
Why volunteer directors burn out — and how to prevent it
The fear that drove most leaseholders to pursue RTM in the first place — trading a bad managing agent for a second job — is real. Here is what actually causes burnout, and what genuinely helps.
- Compliance deadlines arrive without warning, often at the same time as other demands
- One director carries the administrative load while others disengage
- Neighbours treat the director as on-call property management, not a volunteer
- Uncertainty about whether a decision needs professional advice — or just common sense
- The volume of email, paper and calls from contractors, leaseholders and Companies House
- No system for tracking what has been done and what is still outstanding
The answer is structure, not more effort. Most of these problems are solved by a clear compliance calendar, a shared record of decisions, and fast access to plain-English guidance when you need it — not when a solicitor is available.
RightToManage.ai AI Assistant
How the AI Assistant reduces the administrative burden
The AI Assistant is not a chatbot that answers general property questions. It is a management tool built specifically for RTM company directors in England — it knows your building's compliance calendar and surfaces what you need to act on, before it becomes a problem.
Compliance tracking
Deadline reminders before they bite
Insurance renewals, Companies House filings, service charge demands and Section 20 trigger points — the Assistant tracks them and tells you what to do next, in plain English.
Practical guidance
Answers to director questions, fast
When a leaseholder raises a complaint, or you need to know whether works require a Section 20 notice, the Assistant gives you a plain-English answer — without a waiting room.
Decision records
A written record of what was decided and why
Every action the Assistant helps you take creates a record. At tribunal, at renewal, or when a flat changes hands, you have evidence that the building was managed properly.
Service charge support
Budgets and demand letters, structured correctly
The Assistant helps you structure your service charge budget and check that demand letters include the prescribed information — before they go out, not after a leaseholder challenges them.
Partner access
Vetted professionals when you need them
When a question needs a qualified professional — an accountant, a solicitor, a managing agent — the Assistant connects you directly to our vetted partner network.
Flat-fee subscription
£39 per month for the whole company
One subscription covers your RTM company, regardless of the number of flats. No per-leaseholder charge. No usage limits. Cancel any time. See how the costs compare.
The AI Assistant provides practical guidance and information. It does not provide legal advice. Where a matter requires a solicitor's opinion, the Assistant will tell you clearly and connect you with a qualified partner.
Your management options
When to use a managing agent — and how to choose the right one
RTM does not require you to self-manage. You can appoint a managing agent of your choice — which is precisely the point. The difference is that you now choose who manages your building, on what terms, and for how much. You also have the power to replace them if they underperform.
A managing agent makes sense when the block is large, the directors have limited time, or the maintenance burden is complex. But the wrong agent will recreate exactly the problem you solved. Use these questions to assess any agent before appointing them:
Our professional services partners include managing agents who work specifically with RTM companies in England and understand that the directors — not the agent — are in charge.
Common questions
Questions RTM directors ask most often
These are the questions that come up regularly once a newly formed RTM company takes the reins. Plain-English answers — no jargon.
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What are the responsibilities of an RTM company director?
RTM company directors are responsible for arranging and maintaining buildings insurance, collecting and holding service charges in a designated trust account, maintaining common areas and responding to repair requests, following the Section 20 consultation process before commissioning qualifying works, filing annual confirmation statements and accounts at Companies House, and enforcing lease obligations. These are legal duties, not optional best practice.
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What is a Section 20 consultation and when does it apply to an RTM company?
Section 20 of the Landlord and Tenant Act 1985 requires RTM companies to formally consult leaseholders before commissioning any single item of qualifying works costing more than £250 per leaseholder, or before entering into long-term qualifying agreements. The consultation involves two notice stages. Failing to follow the process limits the RTM company's cost recovery to £250 per leaseholder regardless of the actual cost.
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Can leaseholders manage their own block without a managing agent?
Yes. RTM companies can self-manage without appointing a professional managing agent. This is more common in smaller blocks where directors have relevant skills and time. It requires a clear understanding of legal obligations including Section 20 consultation, service charge accounting rules under the Landlord and Tenant Act 1985, buildings insurance requirements and Companies House filing obligations.
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What happens if an RTM company misses a Companies House filing deadline?
Missing the annual confirmation statement or accounts filing deadline triggers automatic financial penalties from Companies House. Persistent failure to file can lead to compulsory strike-off of the RTM company. If the company is struck off, it loses the Right to Manage and would need to start the claim process again. Setting reminders well in advance of deadlines is essential.
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Do I need to be a qualified property professional to be an RTM director?
No. There is no qualification requirement to become an RTM company director. However, the legal duties are the same regardless of your background. Most directors succeed not through property expertise, but through organisation, a clear compliance calendar and knowing when to bring in professional support — which is exactly what the AI Assistant is designed to provide.
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How does the Right to Manage process start if we haven't claimed yet?
Before your RTM company can take over management, you need to establish whether your building and its leaseholders meet the eligibility criteria. The process then involves forming the RTM company, serving the participation and claim notices, and completing the handover. See our full guide to how Right to Manage works for a step-by-step overview, or check your eligibility now.
Explore further
More from RightToManage.ai
Step-by-step guide
How Right to Manage works
From eligibility check to acquisition date — the full RTM claim process explained in plain English.
Costs & pricing
What RTM costs — and what it saves
A transparent breakdown of claim costs, ongoing management costs and how the £39/month AI Assistant compares.
Professional partners
Solicitors, surveyors & managing agents
Vetted professionals who work specifically with RTM companies in England. Connected through the AI Assistant when you need them.
Your building, your rules — without making it your second job
The AI Assistant is designed for exactly where you are now: a newly formed RTM company with real responsibilities and no professional staff. For £39 a month, you get the compliance tracking, plain-English guidance and partner access that keeps your building running properly — and keeps you in control.
Start with an eligibility check