The TMO can then enter into a legal management agreement (contract) with the landlord. The TMO is paid annual management and maintenance allowances in order to carry out the management duties that are delegated to them. The allowances are based on what the landlord would spend to carry out the duties delegated to the TMO and should be reviewed, in full, every 5 years to account for any increase/decrease in the landlords expenditure.

TMOs can take different forms and sizes. Many were established as Industrial & Provident Societies (now known as Registered Societies), using co-op rules. Others may take the form of not-for-profit companies (either limited by shares/guarantee or as a Community Interest Company). Some TMOs manage just a handful of homes while others manage large estates of up to two thousand properties. The small TMOs may rely mainly on voluntary effort but most employ staff such as housing managers, caretakers and repair workers.

The services managed by the TMO vary with local circumstances but may include day-to-day repairs, tenancy management, cleaning and caretaking, and rent collection.

Independent research has confirmed the role played by TMOs in increasing tenant control and empowerment which, in turn, leads to high levels of resident satisfaction.