What responsibilities will the RTM company acquire after taking over management?
Once the RTM company acquires the right to manage, the management functions that the landlord or management company are responsible for (as per the lease) are transferred to the RTM company.
These include:
- Monitoring tenant’s compliance with their covenants in the lease and enforcing the covenants where they are not complied with
- Collecting service charges
- Insuring the block
- Granting approvals required by the lease e.g., for assignment or alterations
- Providing services (as prescribed by the lease)
- Repairing and maintaining the property
- Managing the property
The right to collect the ground rent will not be transferred to the RTM company and stays with the landlord. The RTM company will also not acquire the right of re-entry or forfeiture and this remedy stays with the landlord.
The RTM company (after taking over the management functions) can agree with the landlord or management company for the landlord or management company to continue with one or more of the management functions if all parties agree to do so, e.g. the RTM company may want the landlord or management company to continue insuring the property.
Due to the number of responsibilities that the RTM company will acquire, the RTM company may want to employ a managing agent to manage the property on behalf of the RTM company.
If you have any questions about RTM companies, or your right to manage, please contact us at info@meaby.co.uk or call 020 7703 5034.
