Becoming the Director of an RTM (Right-To-Manage) Company
With the number of apartment buildings and estates in the UK, each with its own respective issues and concerns, the need for more cost-effective, and convenient management solutions is more relevant now than ever.
This is why the Right-To-Manage system is such an important option for leaseholders, it enables qualifying leaseholders to take over the management of the block or estate from the freeholder. RTM is typically exercised when the current management arrangement is insufficient or there are disputes about maintenance and the service charge.
Any leaseholder considering becoming the director of an RTM company should be aware of the advantages it has, and its potential drawbacks:
What are the positives of becoming a director of an RTM company?
I — Saving Money
After taking over the management of the property, significant savings can be made on administrative fees, maintenance and repair costs, and insurance.
II — Having a Say
One of the most inviting aspects of becoming a director of an RTM company is the control that is gained over the management of the building, which entitles the director to voice their opinions about maintenance and repairs, upkeep of communal areas, and the ability to determine the service charges and management costs.
III — Higher-quality Service
The directors of an RTM company can choose the contractors who will carry out repair and maintenance work, as these leaseholders understand the block well, they can determine the best option for the property — this will improve the quality of the service for the residents.
What are the negatives of becoming a director of an RTM company?
I — Time-consuming
Becoming a director of an RTM company is a big commitment, especially time-wise. A director is expected to make enough time to be able to attend to their expected duties, especially the day-to-day duties.
II — Responsibility
Directors of a Right to Manage company bear a significant amount of responsibility, the role of the director is to ensure that the RTM company acts and remains compliant with the law, maintains the building, and manages the finance effectively.
III — Handling Disputes
The director of a Right to Manage company will sometimes face disputes and disagreements between tenants, one important duty of a director is to settle any of these conflicts and find a solution that both parties can accept so that a harmonious living environment can be maintained.
Final thoughts
If you aren’t happy with the current management situation in your block or estate, RTM is an excellent option to change it, it can provide you with greater control over the property’s management, as well as the freedom to save costs and improve the service of the management. Alongside these benefits, you should consider the potential drawbacks of becoming a director of an RTM company.
If you are interested in using the Right-To-Manage, get in touch, we would love to discuss the issues in your block