How are TMOs set up and run?
Setting up a TMO
Tenants have a right to take on the management of the council housing where they live. This may happen where a local residents' group believe that they could provide a better or more cost-effective service, like arranging repairs or estate cleaning, if they were to have direct control of the money that the council spend to provide those services.
When residents join together to manage their own homes, they set up a Tenant Management Organisation (TMO). TMOs come in different shapes (high-rise tower blocks, low-rise blocks, houses) and sizes (100-1,200 homes). Resident groups can only take on housing management functions if they have the support of residents in the homes and if they can show they have the skills and knowledge needed to be successful.
The ‘right to manage’ has been improved to help make the process quicker and less complex for residents keen to set up a TMO. Further information on the process of setting up a TMO can be found via the following documents:
- A tenant's guide to right to manage (PDF, 2.7MB)
- Tenants leading change - how to get involved in making a neighbourhood a better place to live (PDF, 1MB)
If you are a member of a Residents’ Association and you are interested in setting up a TMO on your estate, please contact the TMO Client Team:
Email: TMOClientTeam@lambeth.gov.uk.
Running a TMO
Each year, TMOs are required to hold an annual meeting (usually within six months of the end of a financial year). The meetings can only be attended by residents who are shareholders of the TMO. Those who aren't can attend these meetings but they will only be allowed to observe, and will have no speaking or voting rights.
Residents on a TMO-managed estate will be able to buy a share. In doing so, they become a shareholder which gives them a right to vote at any annual meeting (should a need arise), as well as to speak and to stand for nomination to the board. Before the annual meeting, shareholders are given the opportunity to seek nomination to becoming a board member. These nominations require a proposer and a seconder and must be provided to the estate office two weeks ahead of the actual annual meeting.
At the annual meeting, shareholders are given the opportunity to vote in the nominated board members. In instances where there are more people nominated than vacant board positions, the nominees may be required to give a speech.
Once a board is elected, key official positions on the board such as chairperson, treasurer, secretary and vice positions, where applicable, are agreed at the meeting after the annual meeting. When more than one board member indicates an interest for an official role, they too will be required to give a speech before a formal vote takes place among board members. The board, or in some cases referred to as 'management committee,' are then responsible for managing their housing staff in delivering housing services to residents, as well as setting out the strategic direction of the TMO.