[1] A TMO is created when residents (tenants and leaseholders) in a defined area of council or housing association homes create a corporate body and, typically, elect a management committee to run the body.
[2] This body then enters into a formal legal contract between the landlord of the home(s) and the council, known as the management agreement.
The services provided by TMOs are mainly funded by the management fees paid by the Council under the agreement.
The extent of the devolution in service can vary enormously, particularly between small and large TMOs, but may typically include day-to-day repairs, allocations and lettings, tenancy management, cleaning and care taking and rent collection/recovery.
The work of a TMO may touch and overlap with that of an arms-length management organisation (ALMO).