The Management Lease Agreement is utilized when a property owner wishes to delegate both occupancy and operational management of their property to a professional management entity while maintaining ownership rights. This arrangement is common in Switzerland, particularly for commercial properties, hotels, and managed facilities. The agreement must comply with Swiss federal and cantonal laws, incorporating provisions from the Swiss Code of Obligations regarding both lease and management relationships. The Management Lease Agreement typically includes detailed terms for property operation, maintenance standards, financial arrangements including rent and/or revenue sharing, reporting requirements, and specific performance metrics. It's particularly relevant in situations where sophisticated property management is required, combining traditional lease elements with professional operation and management obligations.
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1. Parties: Identification of the lessor/owner and the management lessee, including full legal names, addresses, and registration details
2. Background: Context of the agreement, description of the property, and purpose of the management lease arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including Property, Management Services, Gross Revenue, Operating Expenses, etc.
4. Grant of Lease: Formal grant of lease and management rights, including the specific property details and scope of management authority
5. Term and Renewal: Duration of the agreement, commencement date, renewal options, and conditions for extension
6. Management Obligations: Detailed responsibilities of the management lessee in operating and managing the property
7. Fees and Payment Structure: Financial terms including base rent, management fees, revenue sharing, and payment schedules
8. Operating Standards: Required standards of operation, maintenance, and service delivery
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
10. Insurance and Liability: Required insurance coverage and allocation of liability between parties
11. Termination Rights: Grounds for termination, notice requirements, and consequences of termination
12. Handover Provisions: Procedures for property handover at commencement and termination
13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes
14. Notices: Process and requirements for formal communications between parties
1. Employee Matters: Include when the management lessee will take over existing employees or hire new staff
2. Intellectual Property: Include when the property involves branded operations or specific IP rights
3. FF&E Provisions: Include when furniture, fixtures, and equipment are part of the lease
4. Environmental Compliance: Include for properties where environmental regulations are significant
5. Competition Restrictions: Include when restricting the lessee's involvement in competing properties
6. Force Majeure: Include specific force majeure provisions beyond standard Swiss law
7. Bank Guarantees: Include when additional financial security is required
8. Marketing and Branding: Include when specific marketing obligations or branding requirements exist
1. Property Description: Detailed description of the property, including plans and specifications
2. Inventory List: Comprehensive list of all fixtures, furnishings, and equipment included
3. Service Level Requirements: Detailed operating standards and performance metrics
4. Financial Terms: Detailed breakdown of rent, fees, and payment calculations
5. Insurance Requirements: Specific insurance types and coverage levels required
6. Maintenance Schedule: Regular maintenance and inspection requirements
7. Operating Licenses: List of required permits and licenses for property operation
8. Employee Information: Details of transferred employees and employment terms if applicable
9. Form of Bank Guarantee: Template for required financial security documents
10. Handover Checklist: Detailed checklist for property handover procedures
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