The Management Agreement Rent To Rent is designed for situations where property owners wish to delegate complete management responsibility while securing a guaranteed rental income. This document, governed by Indonesian law, is particularly useful for owners of residential or commercial properties who prefer a hands-off approach to property management. It enables management companies to take control of the property's operation, including tenant management, maintenance, and revenue optimization, while providing the owner with a fixed rental income regardless of occupancy rates. The agreement includes comprehensive provisions for property management, financial arrangements, regulatory compliance, and risk management, all aligned with Indonesian legal requirements including the Civil Code and property regulations. This type of agreement has become increasingly popular in Indonesia's growing property market, especially in major urban areas where professional property management services are in high demand.
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1. Parties: Identification of the property owner and the management company, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a rent-to-rent management arrangement
3. Definitions: Definitions of key terms used throughout the agreement including Property, Management Services, Rental Income, Operating Expenses, etc.
4. Appointment and Term: Formal appointment of the management company, duration of the agreement, and renewal terms
5. Management Company's Rights and Obligations: Detailed description of management services, responsibilities, and authority granted to the management company
6. Property Owner's Rights and Obligations: Responsibilities and obligations of the property owner, including maintaining property insurance and structural repairs
7. Financial Terms: Rental guarantees, management fees, payment terms, security deposits, and financial reporting requirements
8. Property Maintenance and Management: Standards for property maintenance, repair procedures, and emergency handling protocols
9. Rental Operations: Procedures for tenant selection, rental collection, and management of tenant relationships
10. Compliance and Permits: Obligations regarding legal compliance, required permits, and regulatory requirements
11. Insurance and Liability: Insurance requirements, liability allocation, and indemnification provisions
12. Termination: Grounds for termination, notice requirements, and post-termination procedures
13. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions
14. Governing Law: Specification of Indonesian law as governing law and jurisdiction
15. General Provisions: Standard clauses including force majeure, notices, amendments, and severability
1. Special Property Features: For properties with unique features requiring specific management approaches (e.g., heritage buildings, luxury facilities)
2. Environmental Management: For properties requiring specific environmental compliance or green building standards
3. Staff Management: When on-site staff management is part of the agreement
4. Marketing Services: When specific marketing obligations are included in the management scope
5. Revenue Optimization: For agreements including revenue management services and occupancy optimization
6. Technology and Systems: When specific property management systems or technology platforms are to be used
7. Foreign Investment Provisions: When either party is a foreign entity, addressing specific foreign investment requirements
8. Multiple Property Management: When the agreement covers multiple properties under single management
1. Property Details: Detailed description of the property, including address, specifications, and inventory
2. Service Level Agreement: Detailed performance metrics and service standards for the management company
3. Fee Structure: Detailed breakdown of all fees, charges, and payment calculations
4. Maintenance Schedule: Regular maintenance schedule and procedures
5. Required Insurance Coverage: Detailed insurance requirements and minimum coverage amounts
6. Property Rules and Regulations: Building rules, tenant guidelines, and operational procedures
7. Emergency Procedures: Emergency contact information and response procedures
8. Reporting Ƶ: Ƶ for required financial and operational reports
9. Handover Checklist: Checklist for property handover at the start and end of the agreement
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