Requirements for a Right to Manage company

A right-to-manage company is a group of residents in a block of flats who take responsibility for the maintenance of the common areas such as stairways and gardens. It may be that they take over this responsibility from a landlord. This type of company is limited by guarantee, which means there are no shareholders.


  • There must be at least two directors and at least two members.
  • All directors and members must be residents of the flats. (Once the RTM company takes over, the landlord is also entitled to become a member.)
  • The property must be self-contained or capable of being redeveloped independently.
  • At least 75% of the building must be residential. (I.e. there can be commercial units in the same building if they make up less than 25% of the overall floor space.)
  • At least 50% of the residents must be members of the company before it can exercise RTM rights.

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