Recognised Tenants Associations vs. Right to Manage Companies

RTAs and RTMs – A Comparison
The table 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
Does not have any management responsibilities.

Does not collect or demand Service Charges or Ground Rents.

Can 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.

No ability to enforce lease terms or to forfeit the lease for breach of lease terms.

No say over consents/approvals to be granted  (subject to lease requirements).

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RTM
Has all management responsibilities over qualifying units.Does collect and demand Service Charges in respected of managed areas, but not Ground Rents.

Controls service charge costs.

Controls Section 20 process and award of contract.

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.

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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