As property management continues to change and evolve, staying informed is more important than ever. Rendall & Rittner Co-CEO, Richard Daver BSc (Hons) FCIH FRICS FTPI, shares what RTM and RMC Directors can expect when taking control of their building. Taking control of their building is a milestone moment for any group of leaseholders. Whether through a Right to Manage (RTM) company or a Resident Management Company (RMC), stepping into the role of Director is both exciting and challenging. It is the point where residents move from being more passive contributors to active decision-makers, with the power to shape how their homes are managed today and protected for the future. Starting the process The journey begins with understanding the structure you are working within. An RMC is usually created at the outset of a development, written into the leases from day one, so leaseholders automatically become members when they buy their home. Directors are then elected to make decisions on behalf of the company and all residents. By contrast, an RTM company is formed later, under the Commonhold and Leasehold Reform Act 2002, by leaseholders who want to take control from the freeholder. Both are limited companies with Directors bound by company law. For those looking to establish an RTM but unsure how to start the process, support is available. At Rendall & Rittner, we consult with residents to understand their reasons for looking to acquire the right to manage and provide guidance on whether the process is the right choice for them. We can then check that all necessary qualifying criteria are met and discuss the next steps towards establishing an RTM company. Your responsibilities as a Director Becoming a Director brings with it an increasing range of responsibilities, both from a legal standpoint and to the residential group being represented. Directors are legally accountable for building safety and compliance, how money is collected and spent, and for ensuring maintenance and investment decisions are made wisely. Fairness, transparency, communication and sound governance within the role are all essential traits of a good RTM and RMC Director. As with any company, future-proofing should always be front of mind. It is tempting to focus on short-term costs, but buildings age and evolve, regulations tighten and residents’ expectations grow. Decisions about service charge budgets, reserve funds and maintenance must have one eye on the future. Will the building still meet safety standards five years from now? Will investment in sustainability help lower running costs in the future? Directors who think ahead protect not only the quality of life within the building but also the long-term value of the homes they are responsible for. Another critical part of the Director journey is communication. Residents want to understand how their service charges are being spent, what plans are in place, and why certain priorities have been chosen. Clear communication builds trust and ensures residents feel engaged in the process, even when difficult decisions need to be made. The advantages of partnering with a managing agent Some of this may sound daunting, but Directors do not have go on this journey alone! Partnering with an experienced property management company can provide the knowledge and operational support needed to deliver on day-to-day responsibilities and long-term planning. Highly accredited companies like Rendall & Rittner work alongside hundreds of Directors of RMCs and RTMs across the country, offering services that range from financial reporting, accounting and credit control to health and safety compliance, contractor procurement and long-term asset planning, to name but a few! This kind of professional partnership allows Directors to focus on strategy and governance, confident that expert teams are handling the detail. Significantly, working with a reputable managing agent also limits the liabilities of RTM & RMC Directors. Looking forward Looking to the future, the role of RTM and RMC Directors is becoming ever more important. New building safety laws and regulations brought in by the Building Safety Act, the growing demand for sustainable living, and the evolving expectations of residents are reshaping the sector. For leaseholders, all these factors reinforce the need for good management. Taking control of a building through the RTM process or through an RMC is not only about service delivery today, but about protecting a valuable asset for tomorrow. The Director journey can feel challenging, but it is also extremely rewarding to add value to your own home and community and create a lasting impact. With the right mindset, clear communication and professional support, leaseholders who take on a Director role can ensure their homes are safe, sustainable, and thriving for the long term. Building, Design & Construction Magazine | The Choice of Industry Professionals