A Personal Guarantee Rental Agreement is essential when a property owner requires additional security beyond a standard rental deposit. This document, governed by Indonesian law, is commonly used when tenants have limited rental history, are students, or in situations where the landlord seeks extra financial assurance. It combines two legal instruments: a comprehensive rental agreement detailing property use, maintenance, and payment terms, and a personal guarantee where a third party (typically financially stable) commits to covering the tenant's obligations if they default. The document must comply with Indonesian Civil Code provisions, particularly regarding rental agreements (Articles 1548-1600) and personal guarantees (Articles 1820-1850). It's frequently used in both residential and commercial contexts, especially for high-value properties or long-term lease arrangements.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor including their legal names, addresses, and identification numbers
2. Background: Explains the context of the rental agreement and the need for a personal guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Rental Terms: Specifies the property details, rental period, and rental amount
5. Payment Terms: Details the rent payment schedule, security deposit, and payment methods
6. Scope of Guarantee: Defines the extent of the guarantor's obligations and financial responsibilities
7. Guarantor's Obligations: Lists specific duties and commitments of the guarantor
8. Property Use and Maintenance: Outlines permitted use of property and maintenance responsibilities
9. Landlord's Rights and Obligations: Details the responsibilities and rights of the property owner
10. Tenant's Rights and Obligations: Specifies the responsibilities and rights of the tenant
11. Default and Remedies: Describes what constitutes default and the consequent legal remedies
12. Termination: Conditions and procedures for ending the agreement
13. Governing Law: Specifies Indonesian law as governing law and jurisdiction
14. Notices: Details how formal communications between parties should be made
15. Execution: Signature blocks and execution requirements for all parties
1. Subletting Provisions: Include when subletting might be permitted under specific conditions
2. Property Modifications: Include when allowing or restricting property modifications
3. Insurance Requirements: Include when specific insurance coverage is required from tenant or guarantor
4. Multiple Guarantors: Include when there is more than one guarantor, defining joint and several liability
5. Early Termination Rights: Include when specific early termination rights are granted to any party
6. Force Majeure: Include when parties want specific provisions for unforeseen circumstances
7. Guarantor Financial Reporting: Include when periodic financial status updates from guarantor are required
8. Property Management: Include when a property manager is involved in addition to the landlord
1. Schedule 1 - Property Description: Detailed description of the rental property including address, size, and included fixtures/fittings
2. Schedule 2 - Rental Payment Schedule: Detailed breakdown of rent payments, due dates, and payment methods
3. Schedule 3 - Property Condition Report: Initial condition report of the property with photographs
4. Schedule 4 - House Rules: Specific rules and regulations for property use
5. Schedule 5 - Guarantor Financial Statement: Current financial statement of the guarantor proving capacity to fulfill guarantee
6. Appendix A - Required Documentation: Copies of identification documents, business licenses, or other required papers
7. Appendix B - Property Handover Checklist: Checklist for property handover at start and end of tenancy
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