Rent To Rent Management Agreement Template for Indonesia

The Rent to Rent Management Agreement is essential for property owners in Indonesia who wish to delegate the complete management of their property while securing a guaranteed rental income. This document type has become increasingly important in the Indonesian property market as professional property management services expand. It is particularly relevant when property owners want to maintain ownership while transferring operational responsibilities to a professional management company. The agreement, governed by Indonesian law including the Civil Code (KUHPerdata) and Law No. 1 of 2011 on Housing and Settlement Areas, typically includes detailed provisions for property maintenance, tenant management, financial arrangements, and regulatory compliance. The Rent to Rent Management Agreement is designed to protect both parties' interests while ensuring clear delineation of responsibilities and establishing transparent financial arrangements.

1. Parties: Identifies the property owner (First Party) and the management company (Second Party) with complete legal details

2. Background: Explains the context of the agreement, including property owner's desire to delegate management and manager's expertise

3. Definitions: Defines key terms used throughout the agreement including Property, Management Services, Gross Rent, etc.

4. Appointment and Term: Specifies the appointment of the management company and duration of the agreement

5. Manager's Rights: Details the rights granted to the management company, including authority to sub-let and collect rent

6. Manager's Obligations: Comprehensive list of responsibilities including maintenance, tenant management, and reporting

7. Property Owner's Obligations: Outlines the owner's responsibilities and commitments during the agreement term

8. Financial Terms: Details the payment structure, guaranteed rent amounts, and payment schedules

9. Property Maintenance and Repairs: Specifies maintenance responsibilities and procedures for repairs

10. Insurance Requirements: Details mandatory insurance coverage for both parties

11. Termination: Conditions and procedures for early termination of the agreement

12. Dispute Resolution: Procedures for handling disputes between parties

13. Governing Law: Specifies Indonesian law as governing law and relevant jurisdiction

14. Notices: Procedures for formal communications between parties

15. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

16. Entire Agreement: Confirms the agreement as complete understanding between parties