Rent To Rent Contract Template for Indonesia

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Key Requirements PROMPT example:

Rent To Rent Contract

"I need a Rent to Rent Contract for a 10-unit apartment building in Jakarta, with a 5-year term starting March 2025, including guaranteed minimum monthly income for the property owner and the right to convert units for short-term rental use."

Document background
The Rent to Rent Contract is designed for use in the Indonesian property market where a property owner (Head Landlord) grants extended letting rights to a professional operator (Head Tenant) who intends to generate profit through subletting. This arrangement is particularly relevant in urban areas where there is high demand for flexible accommodation solutions. The document encompasses comprehensive terms including property management rights, maintenance responsibilities, financial arrangements, and subletting permissions, all structured within the framework of Indonesian property law and the Civil Code (KUHPerdata). It's commonly used by property management companies, real estate investors, and entrepreneurs looking to establish or expand their property management operations without property ownership. The agreement includes specific provisions for protecting both the property owner's interests and the operator's business model, while ensuring compliance with local property regulations and business licensing requirements.
Suggested Sections

1. Parties: Details of the Property Owner (Head Landlord) and the Rent to Rent Operator (Head Tenant)

2. Background: Context of the agreement, including the property details and the business model of rent-to-rent

3. Definitions: Key terms used throughout the agreement including Property, Head Lease, Sub-tenancies, Rental Period, etc.

4. Grant of Lease: Terms of the head lease granted to the Rent to Rent Operator

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

6. Rent and Payment Terms: Payment obligations, including amount, frequency, and method of payment

7. Deposit and Security: Details of security deposits and any guarantees required

8. Subletting Rights and Obligations: Terms under which the Operator can sublet the property

9. Maintenance and Repairs: Responsibilities for property maintenance and repairs

10. Insurance Requirements: Required insurance coverage for both parties

11. Property Access and Inspection: Rights of access for the property owner and inspection terms

12. Termination: Conditions and procedures for ending the agreement

13. Governing Law: Confirmation of Indonesian law governance and jurisdiction

Optional Sections

1. Utilities and Services: Used when utilities management needs specific allocation between parties

2. Furniture and Fittings: Include when the property is furnished and requires inventory management

3. Property Management Services: When additional property management services are included in the arrangement

4. Renovation Rights: When the Operator is permitted to make property improvements

5. Marketing and Advertising: When specific terms about property marketing need to be agreed

6. Performance Targets: When minimum occupancy or revenue targets are required

7. Change of Ownership Provisions: When protection against property sale needs to be included

8. Force Majeure: When specific provisions for unforeseen circumstances are required

Suggested Schedules

1. Property Description: Detailed description of the property including address, boundaries, and features

2. Inventory List: Comprehensive list of furniture, appliances, and fittings if furnished

3. Rent Schedule: Detailed breakdown of rent payments, including any scheduled increases

4. Maintenance Schedule: Specific maintenance responsibilities and schedules for both parties

5. Condition Report: Initial condition report with photographs of the property

6. Approved Subletting Terms: Standard terms to be used in sub-tenancy agreements

7. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

8. Building Regulations: Relevant building rules and regulations that affect the property use

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Hospitality

Short-term Rentals

Residential Property

Commercial Property

Property Investment

Housing Services

Relevant Teams

Legal

Property Management

Operations

Real Estate

Business Development

Compliance

Asset Management

Facilities Management

Finance

Risk Management

Relevant Roles

Property Manager

Real Estate Investment Manager

Property Operations Director

Legal Counsel

Business Development Manager

Asset Manager

Facilities Manager

Property Portfolio Manager

Real Estate Entrepreneur

Housing Services Manager

Rental Operations Manager

Compliance Officer

Property Investment Analyst

Industries
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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