How a Managing Agent can help make Right to Manage a success

WHEN UNDERTAKING THE RIGHT TO MANAGE (RTM) PROCESS, a common and advisable method chosen by leaseholders is to appoint a competent managing agent who is familiar with the process and the intricacies of legislation, and who can successfully guide you through.

As well as assisting and advising you before and during the process, your chosen managing agent should also be able to successfully deal with one of the trickier parts of the process, the actual handover of management to the RTM Company once the right has been acquired.

Whilst the RTM is not fault based, this does not prevent issues arising concerning the handover of management, for example if the Landlord or their outgoing agent is slow to respond or  intentionally frustrating matters.  Therefore your managing agent should be familiar with the various rights granted to the RTM Company by legislation, for example the Landlord’s duty to provide information and to transfer funds.

A good idea is to prepare a checklist of the items the RTM Company will require to commence the management.  Your managing agent should assist with this, but remember these:

Insurance – Will the property be appropriately insured once the RTM Company takes over?  Or is alternative insurance (including Directors and Officer’s liability insurance) to be arranged?

Accounts – Are handover accounts being prepared by the outgoing party?  Will there be any service charge and or reserve funds being paid over to the RTM Company?

Risk Assessments, Health & Safety and Thorough Examination Reports – Will these be forwarded to the RTM Company to ensure adequate records and readiness for future reviews?  Are there any important works to follow through on?

Individual Details – Does the RTM Company require information on correspondence addresses for leaseholders and other parties?  Are service charge percentages required for issuing future demands?
Each property is unique so there will almost certainly be further items of information that are required.

Post-Acquisition: The handover process can also lead to further matters that need to be dealt with once the RTM has been acquired.

For example the Landlord may wish to become a member of the RTM Company.  There are also obligations to report to the Landlord on certain matters, such as applications for consent.

Therefore an experienced and well informed managing agent who understands not only the process of acquiring the right, but also the concept going forward, is key to running a successful RTM Company post-acquisition.

A smooth RTM handover process is founded on preparation, good advice and the ability to keep on top of things, so the informed guidance of a professional managing agent can certainly be an invaluable tool and an asset to the RTM Company!