Future Formations Ltd
WHAT IS A RIGHT TO MANAGE COMPANY?
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FUTURE FORMATIONS LTD
WHAT IS A RIGHT TO MANAGE COMPANY? A Right to Manage company is a company structure that allows some leasehold property owners to come together to decide how the building is run and maintained. An RTM building must be made up of flats and not houses, and at least two thirds (2/3) of the flats in the said building must be leasehold. The building must also be 75% residential. If there is a shop operating within the same building, it must take up less than 25% of the floorplan in order to apply to be accepted for an RTM company.
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FUTURE FORMATIONS LTD
There is no limit to the number of owners that are able to set up a RTM, however, at least half of the flats must be owned by the owners of the RTM to actually manage the building. What does it mean to 'manage' a building? By managing the building, you are responsible for: Any complaints about/or against the building Collecting and managing the Service Charge and how it should be spent Managing the upkeep of the structure building (repairs, the roof etc.) Managing the upkeep of communal areas.
What does it mean as a landlord? You are able to join the RTM as a member and will be able to 'vote' in any decision making process if you chose to become a part of it. It will not effect your flats and you will still own the flats, however the building will be managed by the tenants. As an example, if a landlord owns 4 flats in a 16 flat building, the landlord will be entitled to 4 votes in the decision making process.
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CONTACT US Future Formations Ltd 4 Cochrane House Admirals Way, Canary Wharf London E14 9UD +442077818033
support@futureformations.co.uk www.futureformations.co.uk