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Personal Guarantee Rental Agreement

Personal Guarantee Rental Agreement Template for Indonesia

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Key Requirements PROMPT example:

Personal Guarantee Rental Agreement

"I need a Personal Guarantee Rental Agreement for a high-end commercial property in Jakarta, where the tenant is a startup company and the guarantor is its venture capital investor, with specific provisions for quarterly financial reporting from both parties."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Property
Landlord
Tenant
Guarantor
Guarantee Obligations
Rental Period
Commencement Date
Termination Date
Rent
Security Deposit
Payment Date
Default Event
Force Majeure
Permitted Use
Business Day
Notice
Applicable Law
Property Manager
Common Areas
Maintenance
Utilities
Occupants
Security Interest
Guarantee Period
Material Breach
Rental Payments
Outstanding Amount
Property Condition Report
Handover Date
Liability Period
Governing Law
Indonesian Civil Code
Working Days
Property Contents
Structural Alterations
Lease Year
Payment Method
Renewal Period
Default Interest Rate
Clauses
Parties and Definitions
Grant of Lease
Rental Payments
Security Deposit
Guarantee Obligations
Property Use
Maintenance and Repairs
Insurance
Assignment and Subletting
Default and Remedies
Guarantor Covenants
Property Access
Utilities and Services
Alterations
Tenant Obligations
Landlord Obligations
Guarantor Obligations
Force Majeure
Termination
Property Return
Notices
Dispute Resolution
Governing Law
Severability
Entire Agreement
Amendment
Indemnification
Liability
Confidentiality
Registration
Costs and Expenses
Representations and Warranties
Good Faith
Compliance with Laws
Environmental Matters
Relevant Industries

Real Estate

Property Management

Residential Property

Commercial Property

Property Leasing

Property Development

Banking and Finance

Legal Services

Relevant Teams

Legal

Property Management

Real Estate

Compliance

Risk Management

Operations

Tenant Relations

Contract Administration

Asset Management

Facilities Management

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Property Lawyer

Leasing Manager

Asset Manager

Tenant Relations Manager

Risk Manager

Contract Administrator

Property Administrator

Compliance Officer

Real Estate Agent

Housing Officer

Facilities Manager

Industries
Indonesian Civil Code (KUHPerdata) Book III: Governs obligations and contracts in general, including the formation and validity of contracts, requirements for legal agreements, and contractual obligations between parties
Indonesian Civil Code Articles 1820-1850: Specific provisions regarding guarantees (borgtocht), including the rights and obligations of guarantors and the scope of guarantee agreements
Law No. 8 of 1999: Consumer Protection Law that ensures fair treatment and protection of rights for both landlords and tenants in rental agreements
Government Regulation No. 44 of 1994: Regulations on houses and residential buildings, including provisions for rental properties and tenant rights
Law No. 1 of 2011: Housing and Settlement Areas Law that provides general framework for residential property usage and rental arrangements
Indonesian Civil Code Articles 1548-1600: Specific provisions regarding lease agreements (rental), including rights and obligations of lessors and lessees
Law No. 11 of 2020 (Omnibus Law): Recent updates to various regulations that might affect property and rental arrangements in Indonesia
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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