Thinking of Becoming an RMC or RTM Company Director? Here’s What You Need to Know

Taking on the role of a Resident Management Company (RMC) or Right to Manage (RTM) Company Director is a significant responsibility. Though thoroughly rewarding, the voluntary position comes with legal, financial and administrative duties that require careful consideration.

Managing filings, meetings and compliance takes time, and mistakes can lead to personal liability, fines and even prison sentences. So, it’s important to understand exactly what you’re taking on, as well as what support is available to you to ensure your RMC runs as smoothly as it can, easing the personal burden the role often demands.  

Innovus is trusted by over 1700 RMC and RTM companies to handle the details so that they can focus on what matters most. This guide will clearly outline exactly what the role entails so that you can make an informed decision about whether you take on the responsibility and how you choose to manage your company.  

What is an RMC or RTM Company? 

An RMC or RTM Company is a legal entity set up to manage the communal aspects of a residential building, such as maintenance, repairs and compliance with lease obligations. These companies act on behalf of leaseholders, ensuring the smooth operation of shared spaces while maintaining statutory and financial compliance.  

Key Responsibilities of Directors  

As a director, you are legally responsible for the management of the company and its compliance with relevant laws. Your duties include:  

Legal Compliance and Governance 

• Ensuring the company complies with the Companies Act, 2006.  

• Holding and documenting board meetings and AGMs.  

• Filing annual returns and financial statements.  

• Adhering to the company’s Articles of Association and lease terms.  

Financial Management and Service Charges  

• Setting up and managing service charge budgets.  

• Ensuring funds are collected and allocated correctly.  

• Overseeing financial reporting and transparency.  

Insurance and Risk Mitigation 

• Ensuring adequate building insurance and public liability coverage.  

• Reviewing policies and updating as needed.  

• Securing Directors & Officers (D&O) Liability Insurance to protect yourself against personal liability claims.  

Building Maintenance and Repairs  

• Overseeing routine and major works to maintain the building.  

• Arranging necessary inspections (fire, electrical, asbestos etc.)  

• Appointing and managing contractors, ensuring they meet safety and quality standards.  

Leaseholder Engagement and Dispute Resolution 

• Effective communication with residents and leaseholders.  

• Enforcing leaseholder obligations, including service charge payments.  

• Handling disputes fairly and in line with legal procedures.  

Data Protection and ICO Registration 

• Ensuring compliance with GDPR regulations.  

• Registering with the Information Commissioner’s Office (ICO).  

• Managing leaseholder data securely.  

As well as holding the above responsibilities, successful RMC or RTM Company Directors typically hold traits or soft skills such as communication, decisiveness and good time management which help them in their roles.  

The Benefits and Drawbacks of RMC/RTM Company Directorship  

Becoming the director of an RMC or RTM Company gives you control over how your building is managed. You’ll have direct oversight of service charges, ensuring financial transparency which will enable you to make informed decisions about maintenance and repairs. By carefully selecting and managing contractors, you may also achieve cost savings. Most importantly, the director role offers a rewarding opportunity to contribute to your community and improve living standards for all residents.  

However, the position does come with challenges. Being a director requires a significant investment of your personal time for meetings, administrative tasks and decision-making. There’s also the potential for legal and financial liability if compliance obligations aren’t met.  

How Innovus Can Help  

Becoming an RMC or RTM Company director doesn’t mean you have to manage everything alone. Innovus provides full-service RMC support solutions designed to help you succeed in the role while reducing your personal risk of liability and workload. 

Our suite of RMC services includes:  

• Director Training – Our expert-led training course ensures you fully understand your legal duties and best practices for effective building management.  
• Company Secretarial Support - We handle essential Companies House filings, record-keeping and administrative support for general meetings, to keep your company compliant and running smoothly. 
• Nominee Director Services - If your company struggles to find willing directors, we can provide a professional nominee to act on behalf of residents to ensure compliance and governance continuity. 
• ICO Registration and Data Protection Support – We assist with GDPR compliance, leaseholder data security and ICO registration to protect you from risk.  
• Directors and Officers (D&O) Insurance – Protecting you from personal liability, ensuring you have legal and financial coverage in the event of any disputes or claims.  
• Consultancy and Advisory Services - We offer guidance on best practices and assistance with regulatory changes affecting RMC issues. 

Taking on the role of an RMC/RTM Company Director is a significant commitment, and with the right support can be a manageable and rewarding experience. If you want to take an active role in how your building is run, but have concerns about taking on the responsibilities alone, Innovus can provide the guidance and practical support you need.  

Want to learn more? Contact us today to see how we can support you.