RTM Formation Process

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Timeline Overview

The RTM process typically takes 4-6 months from start to finish.

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Step 1: Preparation (1-2 months)

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Check Eligibility

Use our eligibility checker or consult the eligibility requirements.

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Gather Support

You need participation from at least 50% of qualifying tenants:

• Explain the benefits of RTM
• Address concerns about costs and responsibilities
• Collect signed membership applications

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Step 2: Form the RTM Company (2 weeks)

Register a company limited by guarantee at Companies House:

1. Choose a company name (must include “RTM Company Limited”)
2. Prepare the Memorandum of Association
3. Prepare the Articles of Association
4. Register with Companies House (£12 online)

RTM Company Formation

Use our guided tool to prepare all documents

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Step 3: Notice of Invitation to Participate (14 days minimum)

Before serving the claim notice, you must invite all qualifying tenants to become members:

• Send to every qualifying tenant
• Allow at least 14 days to respond
• Those who join become members of the RTM company

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Step 4: Serve the Claim Notice

The formal claim notice must:

• Be signed by or on behalf of the RTM company
• State the date management will transfer (at least 3 months ahead)
• Be served on the landlord and any managing agents

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Step 5: Counter-Notice Period (1 month)

The landlord has one month to serve a counter-notice:

• Accepting the claim - proceed to acquisition date
• Disputing the claim - may need to go to First-tier Tribunal

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Step 6: Acquisition Date

On this date, management transfers to the RTM company. You’ll need:

• Managing agent (or plan for self-management)
• Insurance arrangements
• Contractor relationships
• Financial systems