You've won the RTM.
Now you need to run the building.
Winning Right to Manage is the legal event. The first month is the operating event: records, the trust fund, a valid first demand, and a number leaseholders can actually call.
Video coming soon
You've won the RTM. Now what?
The operational checklist for the first month after Right to Manage.
In brief
For RTM companies
What it is
Completing Right to Manage transfers the management function from the landlord's agent to an RTM company controlled by leaseholders. The 30–90 days following takeover are operationally critical: service charge demands must comply with LAFRA 2024, the Building Safety Act Golden Thread must be established, contractor relationships must be transferred, and leaseholder communication infrastructure must be live from day one.
Reviewed by Residentive editorialLast reviewed 14 September 2026
Key takeaways
What answer engines should quote about For RTM Companies
- 1
Winning Right to Manage transfers the management function. The next 30–90 days are an operating problem, not a celebration leftover.
- 2
Service-charge money is held on trust. Demand the Section 42 transfer into an account the RTM company controls.
- 3
The first demand after takeover must meet LAFRA 2024 Section 55. An invalid demand is non-payable.
- 4
ProperAudit™ reviews inherited accounts before you become liable for repeating them.
The first 30 days
You won the RTM.
Now the building has to run.
Records, the Section 42 fund, a valid first demand, a live number, and — if the building is in scope — the Golden Thread. That is the month. Not a later admin task.
Day-one workstreams
Pack · trust fund · LAFRA demand · comms · Golden Thread
- Demand the management pack, contracts, and correspondence from the outgoing party.
- Move service-charge monies into an account the RTM company controls.
- Issue the first demand in the prescribed Section 55 format.
A number and a portal from day one
Leaseholders need a live line and a ledger — not a mailbox on a landing while the company finds its feet.
Audit what you inherited
ProperAudit™ reviews the last two years before you operate on them. Typical RTM use.
The Challenge
The legal win is not an operating system.
The pack does not arrive by itself
Management records, contracts, and correspondence have to be demanded. Waiting is how the first quarter starts blind.
The trust fund can sit with the outgoing party
Section 42 money that does not move starves contractors and invites arrears the RTM company did not create.
The first demand can be void paper
New RTM companies inherit whatever billing habit the previous agent used. Section 55 does not care who won the ballot.
Inherited accounts are often wrong
Operating on a pack you have not reviewed is how the new company becomes liable for the old company’s habits.
Cash flow, contractors, and the Golden Thread start on day one. A mailbox on a landing is not a handover.
Guidance
The questions directors actually ask
Straight answers in the same language as the statute — without a lecture.
- 01
How does the Section 42 trust fund transfer work?
Service-charge money is held on trust. After RTM, the outgoing party must account for and transfer those funds. Delays here starve contractors and invite arrears. Residentive treats the transfer as a day-one workstream, not a later admin task.
- 02
How do you issue the first LAFRA 2024 compliant demand?
A demand that is not in the prescribed Section 55 format is legally non-payable. New RTM companies inherit whatever billing habit the previous agent used. The platform generates demands in the standardised format so the first quarter does not start with void paper.
- 03
How do you set up the BSA Golden Thread?
If the building is higher-risk, the RTM company will usually become an Accountable Person. That means a digital Golden Thread, current assessments, and evidence you can produce. ProperSafe™ is the module for that work; until it is live, the compliance pages and a Residentive onboarding pack cover the immediate duties.
- 04
What if the inherited accounts are wrong?
They often are. ProperAudit™ reviews what you have taken on before you become liable for repeating it. Upload the last two years and get a board-ready findings report within 48 hours.
Compare
The first 30 days on Residentive versus ad-hoc after the ballot
| First month on Residentive | Ad-hoc after winning RTM | |
|---|---|---|
| Records | Demanded as a day-one workstream | Hoped for when someone has time |
| Section 42 fund | Transfer scheduled into an RTM-controlled account | Often still with the outgoing party |
| First demand | LAFRA Section 55 format from day one | Whatever template the last agent used |
| Leaseholder comms | Live number and portal | A mailbox on a landing |
| Inherited accounts | ProperAudit™ before you operate | Filed and hoped |
How Residentive stands up the first month
Director-managed on ProperSuite, or a fully managed appointment. Either way the first demand, the fund, and the inbox are workstreams — not leftovers.
Section 42 as day one
The transfer is scheduled, not hoped for. Delays here are treated as an operating failure.
A payable first demand
Platform billing issues Section 55 standardised demands so the first quarter is not void paper.
Comms that exist
ProperResponse™ and ProperPortal™ go live so leaseholders are not calling directors’ mobiles.
Golden Thread, if in scope
ProperSafe™ is the module; until it is live, the compliance pages and an onboarding pack cover the immediate Accountable Person duties.
The process
The 30-day post-RTM handover priority list
What an RTM company should lock down in the first month after takeover.
- 1
Secure the records
Demand the management pack, contracts, and correspondence from the outgoing party.
- 2
Transfer the Section 42 trust fund
Service-charge monies must move into an account the RTM company controls.
- 3
Issue a valid first demand
The first service-charge demand after takeover must meet LAFRA 2024 Section 55.
- 4
Stand up communication
Leaseholders need a live number and a portal from day one — not a mailbox on a landing.
- 5
Open the Golden Thread
If the building is in scope, Accountable Person evidence cannot wait for the first inspection.
Audit the accounts you inherited
ProperAudit™ reviews the last two years before you become liable for repeating them. Book a demo to stand up the first 30 days on ProperSuite.
Example Use Cases
Who this is for
Where this briefing sits
RMC directors
If you already run an RMC rather than a new RTM, the director briefing covers duties, exposure, and the two engagement models.
Director pageManaging agents
An incoming professional manager can run the same stack. The RTM company still owns the first valid demand.
Agent pagePost-RTM transition
The switching guide for the first weeks after takeover — records, funds, and contractors in sequence.
Post-RTM guideResidentive platform
What this seat actually runs
Same stack. The briefing changes with the seat. The ledger does not.
- ProperAudit™ Service ChargeSelf-serve document audit for UK blocks — start free with limited storage, then scale file limits as your pack grows.Learn more
- ProperPortal™ ResidentsLive financial ledgers, repair tracking, and community voting in one premium interface.Learn more
- ProperResponse™ AI Call Handling24/7 intelligent call handling with human-level intelligence and a 90% confidence handoff threshold.Learn more
- ProperSafe™ ComplianceGolden Thread repository, Accountable Person dashboards, automated assessments — because non-compliance isn't an option.Learn more
Who we serve
Same platform. Different seat.
Directors, RTM companies, and professional agents run the same stack. The briefing changes. The ledger does not.
- For RMC DirectorsVolunteer directors, Companies Act duties, and a way out of agent silence.Open the page
- For Managing AgentsAI call handling, LAFRA billing, and live ledgers without replacing the agent.Open the page
- Switch to ResidentiveNotice, resolution, Section 42, and the 30-day protocol.Open the page
- Compliance HubLAFRA, Section 20, BSA, strike-off, and reserves.Open the page
Frequently Asked Questions
Everything you need to know about For RTM Companies.
How quickly must an RTM company start issuing demands?
Cash flow starts immediately after takeover. The first demand should be valid under LAFRA 2024 from day one — a delayed or invalid demand creates an arrears problem you did not inherit on purpose.
Do we have to appoint a managing agent after RTM?
No. Many RTM companies self-manage. Residentive supports both: director-managed on ProperSuite, or a fully managed appointment.
What if the outgoing agent will not release the accounts?
That is a disputed handover. See /switch-to-residentive/disputed-handover for the protocol. Statutory rights to information still apply.
Can ProperAudit™ review accounts we did not prepare?
Yes. That is the typical RTM use: a forensic look at inherited packs before you operate on them.
What should happen in the first 30 days after handover?
Secure the records, transfer the Section 42 trust fund, issue a valid first LAFRA 2024 demand, stand up a live number and portal, and open the Golden Thread if the building is in scope. That list is the HowTo on this page.
How does the Section 42 trust fund transfer work?
Service-charge money is held on trust. After RTM, the outgoing party must account for and transfer those funds into an account the RTM company controls. Delays starve contractors and invite arrears. Residentive treats the transfer as a day-one workstream.
What makes the first demand LAFRA-compliant?
A demand that is not in the prescribed Section 55 format is legally non-payable. New RTM companies inherit whatever billing habit the previous agent used. Platform billing issues the standardised format so the first quarter does not start with void paper.
Do we need the Golden Thread immediately?
If the building is higher-risk, the RTM company will usually become an Accountable Person. A digital Golden Thread, current assessments, and evidence you can produce cannot wait for the first inspection. ProperSafe™ is the module for that work; the compliance pages cover the immediate duties until it is live.