How Do You Qualify For Right To Manage?


Right to manage is most often used by tenants who are unhappy with the management of their block of flats. This is a popular option for those who want to have more control over their property. Read more of our right to manage guidance below on the important factors to be aware of.

What is Right to Manage (RTM)?

The term ‘Right to Manage’ is a statutory right for tenants to acquire management of their residence from the landlord. This is done by setting up a right to manage company. There is no need for the landlord’s permission, court orders, or proof of mismanagement to exercise RTM. However, managing a block of flats or any property block comes with responsibilities. This will include arranging your block of flats insurance.

The right to manage process can be reasonably complex but there are clear steps to follow. There is specific criteria you’ll need to meet to be able to qualify as a right to manage company. As building insurance brokers, we recommend you take into account all the factors before you exercise your right.

The right to manage conditions for qualifying leaseholders

To be suitable for right to manage, tenants must meet the ‘qualifying leaseholders’ criteria. A minimum of two-thirds of the entire block of flats should be leased to qualifying leaseholders. A qualifying tenant classes as someone who has a lease agreement that was originally for over 21 years. It’s also important to note that there is no requirement for past or current residence in the property by the leaseholder to qualify.  

There is no legal limit to the number of flats that a single tenant can own. Each flat or property can also only have one qualifying leaseholder. So, for apartments that are co-leased by two or more people, you count the tenants as one joint leaseholder.

How do you qualify for Right to Manage?

If you have met the leaseholder’s criteria, the next stage will be qualifying as a right to manage company. This right to manage process is more complicated and only applicable if:

  • It is exercised for one individual building block. A right to manage company cannot manage more than one detached building. If there is an estate with more than one self-contained building, each block will have to qualify separately.
  • There is a sufficient number of qualifying members in the right to manage company. This should at least be equal to 50% of the flats that make up the building.
  • The block is no more than 25% commercial. It’s best to get advice from an expert if you are unsure about the commercial to residential split.

How does right to manage affect the building’s insurance?

Those managing a block of flats will take over all of the necessary procedures. This will involve maintenance of the property, risk assessments and reviewing the block of flats insurance. If the insurance has already been in place by the landlord, the right to manage company will need to inform the insurance company of the management changes. As part of RTM, you will have the power to change your insurance policy and broker. There is a likelihood that you’ll find better rates as you’ll probably be cutting out management agent’s fees before even looking at the insurance policy itself.

Find specialist building insurance brokers

If you are managing a block of flats and would like to make changes to your insurance policy, contact us. We are specialist building insurance brokers with a focus on blocks of flats. We work with a wide range of insurers but also run our own insurance scheme on behalf of one of the UK’s leading insurer so we can find you great prices and cover enhancements that are only available through us.

Call a member of the Flats Direct team today on 0800 731 6242. You can also get a block of flats insurance quote online on our website. If you have other insurance requirements, let us know and we can put you in touch with our sister company Alan & Thomas.