The step by step guide to forming and running a resident management organisation

This is the process for residents to take on the management of the council housing where they live.

Step 1: Right to Manage notice

When your tenants group has explored the potential options for involvement and decide that the Right to Manage is the preferred approach, you must serve a formal written notice on the Council.

This is called the 'Proposal Notice' and it must meet the requirements as set out in the Housing (Right to Manage) (England) Regulations 2012.

Step 2: Develop Business Plan, training and negotiations

As soon as the Council informs your residents group that it has accepted the Proposal Notice, you and the Council must together prepare the offer to tenants within 15 months.

Within these 15 months the resident's group committee must also develop their skills and knowledge, work on a business plan and negotiate the proposed management agreement with the Council, establish good governance and apply for government grant funding.

Step 3: Competence assessment

At the end of the 15 month development period, the competence of the residents group will be assessed by an independent 'approved assessor'.

Step 4: Offer to tenants and then ballot

If the approved assessor concludes that your residents group is competent then the offer documents are sent to all tenants including information about the RMO and services they intend to provide.

Within three months the tenants are then asked to vote on the proposed delegation of function to the RMO. If the majority of those who vote are in favour then the RMO can start preparing to manage.

Step 5: Setting up and going live

The management agreement must be signed within 9 months of the ballot result being announced. Within this period the RMO must set up office systems, recruit staff, let contracts and transfer relevant information from the Council's tenancy records. Policies and procedures will also need to be finalised during this time.

Setting up an RMO

If you are considering setting up your own RMO you should contact your Resident Participation Officer who will explain the process in more detail.

Further guidance

Up to Resident management organisations and co-ops

Updated: 05/12/2024