Right to Manage (RTM) is a superb chance for flat owners to acquire control of the upkeep of the public parts of their estate. Nevertheless, it's crucial to think about what is going to take place as soon as they've successfully undertaken the procedure.

We will not explain the procedure for undertaking a Right To Manage procedure here however we will take for granted that the reader has this upbringing. Instead, we will have a look at the things to think about once the RTM organisation has control of the apartment block's management.

When lessees have received consent to obtain their Right to Manage, they more often than not have approximately 3 months in which to get ready for handover before the acquisition date. All the while the big decision is concerning who might in fact undertake the management. There are 3 choices:
- manage the property directly - however this may be a major task when the development is in excess of about 3 or 4 properties, or there are differing opinions of individuals
- retain the existing managing agent
- appoint another managing agent, which one will advise should be a member of ARMA or have some type of affiliation with an expert body

The directors along with residents should talk about the degree of service required in addition to the frequency of activities such as cleaning as well as general upkeep.

A Section 93 information request to the freeholder will reveal all the essential information associated with the block of flats. This makes sure that lessees have at hand all significant information with which to govern the block of flats if the procedure is accomplished.

The new contractors need to be lined up and the block of flats insurance will require sorting, ensuring cover is unbroken from the preceding cover directly from the time of take over.

Worth noting is that the landlord must give up all unspent service charge money upon the Right to Manage acquisition date or as soon as practically possible thereafter.

In most cases the employment of your caretaker will be governed by the Transfer of Undertakings and Employment Regulations (TUPE) plus he or she will not automatically transfer across to the RTM company or the new managing agent you appoint. It will be rare that the caretaker would not want to continue in place but there can be grievences which need to be sorted out. Their contract might cease on the acquisition date plus might need to be renegotiated. It is strongly recommended that those involved in RTM take competent legal advice.

As part of this procedure it is valuable to draw up a thorough action plan as well as set a list of priorities and to pre-arrange frequent meetings with the newly appointed directors for the first few months. Lessees should conduct their own frequent get togethers with the RTM directors so they are correctly briefed and they may appropriately instruct the new managing agent, when one is appointed. It is a good idea for the residents with the assistance of their managing agent to disseminate a publication explaining how the maintenance might now function as well as who are the points of contact.

Colin Cohen Property Management strongly recommends that you acquire copies of all Counterpart Leases. The participants should furthermore agree roles and expectations with the new directors.

Gaining the Right To Manage is a complex procedure but one that is effectively assured to be successful and is relatively economical. But, the time after the new body is created may throw together fellow flat owners in a manner that they were not previously. It is often a bonus that neighbours now work together and know each other. In the same way, it can be the start of a lot of disagreements over the allocation of jobs, allocation of costs along with workloads as well as decisions regarding strategic priorities. The work done in the early weeks may lay the foundations for a harmonious relationship between leaseholders and the directors of the RTM company so it is worth planning ahead even before the RTM process is completed.

. . . . . . .

Colin Cohen is a partner in Colin Cohen Property Management. CCPM is the premier managing agent and property management company in North London and Colin is based in Finchley. For a no-obligation consultation please contact us by clicking here