Q3c: Has the Residents’ Association previously explored acquiring the ‘Right to Manage’? Does the DSRA Committee support RTM? Are there proposals to simplify the RTM legislation?
A: DSRA has no objection to the principle of RTM, provided it is done properly with appropriate professional advice. Indeed DSRA explored the RTM option extensively in 2013/14 and reported this back to members attending the June 2014 AGM.
The nature of the Dance Square site – with multiple residential blocks, commercial units, shared car park and other shared utility services – makes the RTM process complex. There are currently considerable costs involved in setting up an RTM Company effectively, including covering all legal costs of both the RTM company and the outgoing management company. There are also very significant legal responsibilities for those residents running the company as Company Directors. More information can be found here.
The Law Commission published a report in July 2020 that recommended significant changes to the RTM legislation to simplify the process and reduce costs – link here. The Government will consider the recommendations and decide the timescale for any changes to the law. The timescale for legislation is uncertain but would usually be 18 months to 2 years.
DSRA proposes to revisit the issue of RTM when the legislation has changed.
We believe that, in the meantime, the best course of action in the interests of leaseholders, is for us to continue to engage constructively with the Managing Agent.
Information on the RTM initiative by a group of leaseholders seeking to replace the Managing Agent and hand the management of Dance Square to Urang Property Management is here.