The Rent to Rent Management Agreement is essential for property owners in Indonesia who wish to delegate the complete management of their property while securing a guaranteed rental income. This document type has become increasingly important in the Indonesian property market as professional property management services expand. It is particularly relevant when property owners want to maintain ownership while transferring operational responsibilities to a professional management company. The agreement, governed by Indonesian law including the Civil Code (KUHPerdata) and Law No. 1 of 2011 on Housing and Settlement Areas, typically includes detailed provisions for property maintenance, tenant management, financial arrangements, and regulatory compliance. The Rent to Rent Management Agreement is designed to protect both parties' interests while ensuring clear delineation of responsibilities and establishing transparent financial arrangements.
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1. Parties: Identifies the property owner (First Party) and the management company (Second Party) with complete legal details
2. Background: Explains the context of the agreement, including property owner's desire to delegate management and manager's expertise
3. Definitions: Defines key terms used throughout the agreement including Property, Management Services, Gross Rent, etc.
4. Appointment and Term: Specifies the appointment of the management company and duration of the agreement
5. Manager's Rights: Details the rights granted to the management company, including authority to sub-let and collect rent
6. Manager's Obligations: Comprehensive list of responsibilities including maintenance, tenant management, and reporting
7. Property Owner's Obligations: Outlines the owner's responsibilities and commitments during the agreement term
8. Financial Terms: Details the payment structure, guaranteed rent amounts, and payment schedules
9. Property Maintenance and Repairs: Specifies maintenance responsibilities and procedures for repairs
10. Insurance Requirements: Details mandatory insurance coverage for both parties
11. Termination: Conditions and procedures for early termination of the agreement
12. Dispute Resolution: Procedures for handling disputes between parties
13. Governing Law: Specifies Indonesian law as governing law and relevant jurisdiction
14. Notices: Procedures for formal communications between parties
15. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
16. Entire Agreement: Confirms the agreement as complete understanding between parties
1. Multiple Properties Clause: Include when agreement covers multiple properties under single management
2. Special Facilities Management: Include for properties with special facilities like swimming pools or gyms
3. Utility Management: Include when manager is responsible for utility contracts and payments
4. Staff Employment: Include when manager will employ on-site staff
5. Marketing Services: Include when manager is responsible for marketing vacant units
6. Property Development Rights: Include when manager has rights to make property improvements
7. Environmental Compliance: Include for properties requiring specific environmental management
8. Security Services: Include when security services are part of management scope
1. Schedule 1: Property Details: Detailed description of property including address, features, and condition report
2. Schedule 2: Management Services: Comprehensive list of included management services and service levels
3. Schedule 3: Financial Terms: Detailed breakdown of fees, guaranteed rent amounts, and payment structures
4. Schedule 4: Maintenance Standards: Specific maintenance requirements and standards
5. Schedule 5: Insurance Requirements: Detailed insurance requirements for both parties
6. Schedule 6: Inventory List: Detailed inventory of furniture and fixtures if property is furnished
7. Appendix A: Property Photos: Photographic evidence of property condition at agreement start
8. Appendix B: Required Licenses: Copies of relevant business and property management licenses
9. Appendix C: Emergency Procedures: Emergency protocols and contact information
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