By definition, tenants are not required to demonstrate mismanagement by the landlord. The right of management is available to the tenants, whether the management chosen by the lessor has been good, bad or indifferent.

But realistically, the main reason tenants replace their management company is that they are dissatisfied with the current management situation. In many cases, there is a history of mismanagement or service charge complaints, so the right to manage procedure can be adversarial.

Freehold owners often have a vested interest in maintaining the current management situation and are reluctant to see any potential source of income disappear. In cases like these, a landlord may try to deny an RTM claim that you may make. Frequently, a freeholder will turn a new Claim over to their chosen attorneys to carefully review the proceeding and look for a reason to deny the claim.

Therefore, it is vital not to overlook any aspect of the Claim process. Although the process is reasonably well defined, there are still many ways to deny a Claim. Many disputed cases end up being decided by the Leasing Valuation Court (LVT). Several of these rejection reasons include:

1. The Notice of Claim not delivered to the lessor of all or part of the property (Rejection of Claim LVT January 26, 2009)

2. Less than two-thirds of the flats are in the hands of qualified tenants (Claim denied April 17, 2009)

3. That less than 50% of the owners are members of the RTM company (Claim rejected September 8, 2008)

4. Not keeping the member record correctly updated in the correct location

5. Insufficient Documents to Prove Members Are Actually Qualified Tenants (Claim Denied May 6, 2008)

6. Any incorrect company formation – not limited by guarantee, incorrect Memorandum of Association, no certificate of incorporation (Claim rejected May 1, 2009 – second attempt)

7. More than 25% commercial space in the building (anything close to this figure is likely to be in question and will require detailed proof from the surveyor)

8. A date for a counter notification too close (claim denial on May 9, 2008)

9. Some or all non-participants did not receive the properly worded invitation to join (Claim denial Feb 22, 2008)

10. Non-participants who do not have access to required company documentation

11. Non-participants are not given enough time to respond

12. Insufficient Proof That RTM Members Received Copies of the Claim (Claim denied on May 6, 2008)

In addition to these, there are other, admittedly less common, problems with RTM claims. Clearly, it is vital to follow the process to the letter, to try to avoid a counterclaim that denies your application.

But don’t let the cautious tone of this article stop you from replacing mismanagement. The good news is that if you do things exactly right, your RTM acquisition is only a matter of a few months.