The number of tenants interested in obtaining control of their block of flats and exercising their Right to Manage (RTM) is on the increase. However, the disadvantages of taking on the Right to Manage your own block of flats must be understood before you embark on exercising your right to manage:
• Chasing any of your fellow tenants for unpaid arrears of their service charges or ground rent, or trying to enforce breaches of any lease, could prove to be a cause of significant conflict between you and your neighbours. Unlike your landlord, remember you’re going to have to live with these people!
• Much like Landlords now, the Right to Manage company may become vulnerable to the criticism by individual Leaseholders. However by choosing the right management professionals you should hopefully be able to ensure that such criticism can be kept to a minimum.
• Questions concerning the personal liability of you and your fellow tenants under the requirements of the Companies Act can occur where tenants exercise their right to manage – as some members will be required to become Directors of the RTM company. It is well worth considering taking a specialist insurance to cover personal of any and all Officers and Directors of the RTM company
• Throughout the year, the Directors of the Right to Manage company will have to spend time on a variety of issues ranging from decisions on how and when maintenance work is required, and liaison and instruction with those workers who need to actually carry out such maintenance work. Depending on the size of the block and how amenable your fellow tenants are to reaching agreement with regard to work required, this can prove to be hard work and highly time-consuming to say the least
• The formal administrative running of the company can also be highly time-consuming – the directors and officers of the RTM company will have to deal with the responsibility for management of accounts, calling them holding regular tenants and RTM company meetings etc.
Looking for RTM experts? Call our Right to Manage Lawyers
For the right advice on lease extension, lease enfranchisement or exercising the Right to Manage your block, our expert team can help.
- Call us on 0800 1404544 today, or
- Send us an email via the contact form below to get in touch.
Comments or questions are welcome.