The empty shell of Grenfell tower stands as a reminder of the 71 lives lost last June
The organisation said it would "temporarily" hand over control – after councillors voted earlier this year to take back the responsibility for managing homes.
They claimed it "no longer has the trust of residents in the borough".
Kensington and Chelsea Council will get control of the properties by the end of January, and the TMO is facing a "wide-ranging" probe into its activities and conduct.
The blaze, which swept through Grenfell tower in the early hours of June 14, claimed 71 lives even after the TMO and council had been repeatedly warned about fire risks.
