RRA, RMC, RTM…What? – Understanding Residential Associations

Chances are while living in a residential building, buying a new flat, or looking into leasing or sub-leasing a flat or house within a residential complex, you have heard those terms before.



With so many material and articles regarding leasehold advice that can educate you on this subject, we take a look in this article on a practice that can flat owners and residents on their quest for peace of mind.



In this case, perhaps some find their peace of mind in a piece of real property ownership, or at the least, management of their building and/or development.
Today, we talk about residents’ associations and try to shed more light on the different types of them.

Residents’ Association:

RA – This is simply an association of the residents of a certain building or development, it accounts for a collective voice for the residents but holds no legal or official right.



Recognized Residents’ Association:

RRA – It is an RA, that’s recognized under the Act of 1985. An RRA has the legal right to request the landlord or freeholder to consult them on all charges and services regarding the property and can therefore dispute any disagreements in front of a tribunal.

These two forms of basic association gives some room for empowering the residents, especially if they are united, which can serve as a first step to having more control over the leased property.



The next two types of association are more advanced and serve the purpose of the modern day a leasehold advice that every flat owner should seek and understand.

Residents’ Managing Company:

RMC – Usually approved by the project developer, and sometimes even set by them, the RMC is a body that manages the property and common areas of a development. It consists of the flat or property leaseholders without needing to buy any part of freehold. In case of a flat changing tenant, the vote or seat in the RMC is naturally inherited by the new occupant.

Right To Manage Company:

RTM – This is an updated form of self management available to residents, introduced in 2002. An RTM can be formed with or without the agreement of the developer or freeholder. Every RTM must be established as a legal company and comprise of at least 50% of the residents.
As it is a legal company, all disputes with the freeholder can be resolved in front of a legal tribunal.