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Lease Management Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the relationship between a property owner and a property management company. This document outlines the terms and conditions for the professional management of real estate assets, including responsibilities for maintenance, tenant relations, financial management, and operational oversight. The agreement incorporates requirements from Indonesian civil law, property regulations, and relevant local building codes, ensuring compliance with jurisdictional requirements while protecting the interests of all parties involved in the property management arrangement.

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What is a Lease Management Contract?

The Lease Management Contract serves as a crucial document in Indonesian real estate operations, establishing the legal and operational framework for professional property management services. This agreement is essential when property owners wish to delegate the day-to-day management of their real estate assets to professional management companies. The contract, governed by Indonesian law and regulations, including the Civil Code and Property Management regulations, covers comprehensive aspects of property management such as maintenance, tenant relations, financial administration, and regulatory compliance. It is particularly relevant for commercial buildings, residential complexes, and mixed-use developments where professional management is required to maintain property value and ensure efficient operations. The document provides clear guidelines on responsibilities, performance metrics, and accountability measures while ensuring compliance with local building codes and property management standards.

What sections should be included in a Lease Management Contract?

1. Parties: Identification of the property owner(s) and the property management company

2. Background: Context of the agreement, including property details and management requirements

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope of Services: Formal appointment of the manager and detailed description of management services to be provided

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Manager's Duties and Responsibilities: Comprehensive list of manager's obligations including maintenance, tenant management, and reporting

7. Owner's Duties and Responsibilities: Property owner's obligations including provision of necessary documentation and funding

8. Financial Management: Handling of rental income, expenses, accounts, and financial reporting

9. Fees and Payment Terms: Management fees, payment schedule, and reimbursement of expenses

10. Insurance and Liability: Required insurance coverage and allocation of liability between parties

11. Termination: Grounds for termination, notice requirements, and post-termination obligations

12. Governing Law and Dispute Resolution: Applicable Indonesian law and dispute resolution procedures

13. General Provisions: Standard contractual provisions including notices, amendments, and assignment

What sections are optional to include in a Lease Management Contract?

1. Emergency Services: Additional provisions for 24/7 emergency response services, recommended for larger properties

2. Marketing Services: Specific provisions for marketing and tenant acquisition, relevant when manager handles leasing

3. Staff Management: Details of on-site staff management if required for larger properties

4. Environmental Compliance: Special provisions for properties requiring specific environmental management

5. Security Services: Additional security service provisions for high-value or high-risk properties

6. Development and Renovation: Provisions for managing property improvements or major renovations

7. Multiple Property Management: Additional terms for managing multiple properties under one agreement

What schedules should be included in a Lease Management Contract?

1. Schedule 1 - Property Details: Detailed description of the managed property including address, facilities, and current condition

2. Schedule 2 - Management Services: Detailed scope of services including specific tasks and frequency

3. Schedule 3 - Fee Schedule: Detailed breakdown of management fees, service charges, and payment terms

4. Schedule 4 - Reporting Requirements: Ƶ and timing for required reports and financial statements

5. Schedule 5 - Maintenance Schedule: Planned maintenance schedule and procedures

6. Schedule 6 - Key Performance Indicators: Performance metrics and evaluation criteria

7. Appendix A - Required Insurance: Detailed insurance requirements and minimum coverage levels

8. Appendix B - Emergency Procedures: Emergency response protocols and contact information

9. Appendix C - Authorized Representatives: List of authorized representatives for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use

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