Gateway House RTM: pioneering property management

How Gateway House is run

Gateway House is a purpose-built block of 77 leasehold flats at 322 Regents Park Road, Finchley. Since April 2020 it has been managed by its own leaseholders through Gateway House RTM Company Limited.

Under the Commonhold and Leasehold Reform Act 2002, leaseholders have a statutory right to take over the management of their building from the freeholder — without buying the freehold and without having to prove fault. The leaseholders of Gateway House formed an RTM company, served notice, and acquired the right to manage.

The company now holds the management functions under the leases: maintaining the structure and common parts, insuring the building, collecting the service charge and enforcing the lease covenants. The freeholder remains the landlord for ground rent and is entitled to be a member of the company.

Who does what

Members

Every leaseholder is entitled to be a member. Members elect the director, attend the annual general meeting, receive the annual accounts and vote on major decisions.

Director

A leaseholder who is legally responsible for the company. The director sets the budget, appoints and oversees the managing agent, approves major works (including Section 20 consultations) and answers to the members.

Managing agent

Sterling Estates Management is appointed by the director under a management agreement. They run the day-to-day: collecting service charges, instructing contractors, arranging insurance, maintaining statutory compliance (fire risk assessment, lift inspections, legionella, electrical testing) and answering resident enquiries. They are regulated by RICS and the FCA and hold client money in a separate ring-fenced account.

Money

The company makes no profit. Each year the director and the agent agree a budget; the cost is split between the 77 flats according to the percentages in each lease and demanded as a service charge. Accounts are prepared annually and certified and circulated to members; copies can be requested. A reserve fund is built up for planned major works so that large bills don't land all at once.