Right To Manage (RTM) – Advice Please?

Right To Manage (RTM) – Advice Please?

10:54 AM, 11th May 2015, About 10 years ago 24

Text Size

I am one of 5 leaseholders in a small block of flats where the freeholder has the right to appoint the managing agents. The freeholder has agreed a fee of nearly £300 per flat to manage the building which has no lift nor a car park and I am told we have to lump it. I can easily get over half of the leaseholders to agree to set up a RTM company.  Right To Manage (RTM)

However, my experience of trying to set up a RTM company on a larger block has put me off trying to set up a RTM company on this small block. The biggest issue was the fees the solicitors wanted to set up the RTM company.

Has anyone got any experience of being involved in setting up a RTM company and can anyone recommend a decent solicitor who knows what they are doing?

Thanks

Jon Bourne


Share This Article


Comments

Nick Bignell

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

15:39 PM, 19th May 2015, About 10 years ago

Hi Dinah, we favour the appointment of a management agent post Right to Manage, to retain the buffer, but with an agent who's incentives are aligned with those of the owners. Did you know that in March 2014 the Office of Fair Trading (OFT) launched a market study on the provision of residential property management services? This market study was published by the OFT’s successor, the Competition and Markets Authority (CMA) in December 2014. The OFT was concerned that some property managers may be overcharging customers, providing poor-quality services or spending money on unnecessary works. In contrast, the findings of the CMA report show that leaseholders with a Right to Manage Company at the property were more likely (78%) to agree that their property managers provide value for money. The CMA states “We support the principle of RTM and recognize the greater levels of leaseholder satisfaction where leaseholders have exercised their RTM”.

Dinah Pickering

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:16 PM, 19th May 2015, About 10 years ago

Hi Nick, Thank-you for your comment and good advice on the OFT. It is very frustrating that a residence of 12 mews/terraced houses have a sinking fund of 14K built up over only 6 years. Since the residents committee has been set up as non-profit I wonder if the OFT can force some of the fund to be returned? Basically grumpy controlling residents who opted in to become a resident Director are playing the ego control game and enjoy the fact that some of us have to get permission for a new tree to be planted. Again I stress never be part of a residents committee if you live there...BTL yes its ok but on your doorstep... it will ruin your neighbour relationships. So if we have a RTM and they wont spend any money and the pot keeps growing what can be done? Im not begging them with cakes....

Gracie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:59 AM, 2nd February 2017, About 8 years ago

Hi Jon
How did you get on, is your RTM up & running? (I hope!)

jonney

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:45 PM, 2nd February 2017, About 8 years ago

I did take advice and found out that because the ground floor has a retail unit on it then that pretty much ends the opportunity of setting up a RTM company - they are not actually involved in the managament of the building as the leases stipulate that the 5 leaseholders of the flats bear the costs of themanagement company. The freeholder owns the lease to the ground floor unit so has it all nicely sown up. Each of the 5 flats has just had a Section 20 bill for £9,300 for full roof replacement that includes a nice project management fee for the freeholders' agents - I don't buy leasehold properties anymore!!!!

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More