Recognised Tenants Association

rta

For the purposes of the law, the “Landlord” is the Freeholder, or entity named on the lease, and “Tenant” is the Leaseholder (owner) of each flat. Leaseholders own the leasehold interest in a flat. The lease is really just a long-term tenancy.

Overview

Residents in any estate or block can come together to form a Tenants Association.
Once formed, a TA can apply to be the Recognised Tenants Association (RTA), either from the “Landlord” (or via their agent), or failing this, the Court (FTT) can consider a request for recognition.
Even without formal recognition, the TA is a useful forum for residents to come together and be better informed and organised.
Becoming the RTA would require at least 50% ¹⁾ ²⁾ of qualifying tenants to join the TA, once it is formed.
- In the case of Benedicts Wharf there are 52 flats, so this would mean 26 flats joining the TA.
- Other residents could join as associate members, however would not have voting rights.

What powers does a Recognised Tenants Association have?

The secretary of a Recognised Tenants' Association can, with the members' consent, act on behalf of its members in respect of a number of issues, some of which are in addition to that of an individual member. These are:

to ask for a summary of service charge costs incurred by their landlord for which the members have to pay a service charge (section 21 of Landlord and Tenant Act 1985);

to inspect the relevant accounts and receipts (section 22 of Landlord and Tenant Act 1985);

to be sent copies of estimates obtained by the landlord for either long-term agreements to be entered into or intended qualifying work on their properties (section 20 of Landlord and Tenant Act 1985);

to propose names of contractors to be included in any tender list when the landlord wishes to enter a long-term agreement or carry out qualifying works (section 20 of Landlord and Tenant Act 1985);

to ask for a written summary of the insurance cover and inspect the policy (Schedule to the Landlord and Tenant Act 1985);

to be consulted about the appointment or re-appointment of a managing agent (Section 30B of Landlord and Tenant Act 1985).

Source: LEASE: Service charges and other issues, chap. 11

Costs

Initial start-up costs are currently paid for by individual donations.
If the TA is formed, would require a small annual subscription from each member to cover running costs.
- This is currently estimated to be about £15-20 depending on the number of members.

There would be some costs involved forming and running the TA, including:
- Administration (postage, website, meetings etc.)
- Mail forwarding etc.
- Membership of FPRA - £252.00
- FTT court fees - £100 - £300 (if necessary)
- Other reasonable out-of-pocket expenses (e.g. where someone travels to attend a meeting on behalf of the TA)
- Additional one-off expenditure may also be approved where a majority of members have agreed to this.

It is not necessary for the TA to be incorporated (e.g. a not-for-profit company limited by guarantee), but there may be certain advantages in doing so at some point.
- Entering into commercial contracts, holding any significant assets.
- Ensuring the TA will exist in its own right for the long term.
- It would cost about £30-£60 to incorporate a company limited by guarantee. Excluding any legal checks required.

¹⁾

The Tenants Associations Provisions Relating To Recognition And Provision Of Information England Regulations 2018

²⁾

Recognised Tenants' Associations: changes to the rules for formal recognition