You may have come across the terms RTAs and RTMs. But what do they mean? And what is the difference between Recognised Tenants Associations (RTAs) and Right to Manage Companies (RTMs)?

The information below sets out the main differences between RTAs and RTMs, in terms of the rights and powers that each have (this is not an exhaustive list).

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RTA

  • It does not have any management responsibilities.
  • It does not collect or demand Service Charges or Ground Rents.
  • And it can also request summary of service charge costs, and inspect accounts and receipts.
  • Right to be consulted under Section 20 and can nominate contractors.
  • Right to be consulted about appointing a managing agent.
  • Can appoint a surveyor to advise on any matters regarding service charges. The surveyor will have the right to see and copy relevant documents held by the Landlord.
  • Plus, no ability to enforce lease terms or to forfeit the lease for breach of lease terms.
  • No say over consents/approvals (subject to lease requirements).

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RTM

  • It has all management responsibilities over qualifying units. Does collect and demand Service Charges in respect of managed areas, but not Ground Rents.
  • It controls service charge costs.
  • And it also controls Section 20 process and award of contract.
  • Plus, it has control over the appointment of any managing agent to act on their behalf.Right to enforce any breaches of the lease terms (other than non-payment of GroundRent), including for non-payment of Service Charges.
  • There is no right of forfeiture for breach of lease terms.
  • Ability to grant consents/approvals under the lease (subject to consultation with Landlord).

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If you have any questions on property or block management, please contact Pelin Martin to book a 30-minute complimentary property consultation on +0208 994 7327 – pm@bluecrystallondon.co.uk