Understanding Resident Management Companies and RTM Property Management
In the UK property sector, the concepts of a Resident Management Company (RMC) and RTM Property Management (Right to Manage) are increasingly relevant to leaseholders and flat owners seeking more control over their building’s upkeep and finances. Both models aim to empower residents by shifting decision-making power from freeholders to the people who actually live in and care about the property.
What Is a Resident Management Company?
A Resident Management Company, sometimes called a Residents Management Company, is typically formed by leaseholders within a residential development or block of flats. The purpose of the RMC is to take responsibility for the day-to-day management and maintenance of communal areas, such as hallways, gardens, lifts, and roofing. An RMC is usually set up as a limited company, with flat owners as shareholders or members. These residents then elect directors from among themselves to oversee operations, hire managing agents, and handle service charge budgets.
Forming a Resident Management Company gives leaseholders a direct voice in how their property is managed. It can lead to more efficient decision-making, lower costs, and improved maintenance standards, especially when compared to arrangements controlled entirely by distant landlords or freeholders.
Understanding RTM Property Management
The Right to Manage (RTM) is a legal right granted under the Commonhold and Leasehold Reform Act 2002. It allows leaseholders of a block of flats to take over the management of their property—even without proving mismanagement by the landlord. This process involves forming an RTM company, which functions similarly to a Resident Management Company but arises through a statutory procedure.
Once the RTM company is set up and successfully exercises the right to manage, it assumes responsibility for services like building maintenance, insurance, and service charge collection. Although the freeholder retains ownership of the building, they no longer control its management.
RTM Property Management gives residents autonomy and can significantly improve living conditions by ensuring decisions are made in the interest of those who live in the building, not remote property owners.
Why Hire Professional Help?
While the principles behind a Residents Management Company or RTM Property Management are empowering, they also bring administrative responsibilities. Directors must understand compliance issues, legal obligations, budgeting, and building maintenance. That’s why many RMCs and RTM companies appoint professional managing agents to handle day-to-day tasks. These agents provide expertise in service charge accounting, legal compliance, health and safety regulations, and contractor management.
Hiring a professional property manager doesn’t mean giving up control. Instead, it allows resident-led companies to operate efficiently while retaining oversight and accountability.
Conclusion
Both Resident Management Companies and RTM Property Management offer leaseholders greater control, transparency, and financial oversight of their homes. With the right support and structure, these models can transform how residential buildings are maintained, creating better living environments and more satisfied residents. Whether you're part of an existing development or considering forming a new RMC or RTM company, understanding the benefits and responsibilities of resident-led management is essential for long-term property value and community well-being.