The Rental Agency Agreement serves as a crucial legal framework for property owners seeking professional assistance in managing their rental properties in Indonesia. This document is essential when property owners wish to delegate the marketing, tenant screening, rental collection, and potentially property management responsibilities to a professional agency. The agreement, governed by Indonesian law and regulations, particularly the Civil Code (KUH Perdata) and relevant real estate regulations, establishes clear parameters for the agency relationship, including scope of authority, commission structures, and service obligations. It's commonly used by both individual and corporate property owners, and can cover residential, commercial, or mixed-use properties. The document is designed to protect both parties' interests while ensuring compliance with local property management and agency regulations.
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1. Parties: Identification of the Property Owner and the Rental Agency, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including the owner's intention to rent out property and appointment of the agency
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Rental Period', 'Commission', 'Tenant', etc.
4. Appointment and Authority: Formal appointment of the agency and scope of authority granted by the property owner
5. Agency Services: Detailed description of services to be provided by the rental agency
6. Term and Termination: Duration of the agreement and conditions for termination
7. Commission Structure: Details of agency fees, commission rates, and payment terms
8. Obligations of the Agency: Specific duties and responsibilities of the rental agency
9. Obligations of the Property Owner: Specific duties and responsibilities of the property owner
10. Property Marketing: Terms regarding property advertising and promotion
11. Tenant Selection and Screening: Process and criteria for tenant selection
12. Rental Collection and Remittance: Terms for handling rental payments and transfer to owner
13. Representations and Warranties: Standard declarations by both parties
14. Liability and Indemnification: Risk allocation between parties and liability limitations
15. Governing Law: Specification of Indonesian law as governing law
16. Dispute Resolution: Process for handling disagreements and jurisdictional matters
1. Property Management Services: Additional section when the agency will also provide property management services
2. Maintenance and Repairs: Include when agency is authorized to handle property maintenance
3. Insurance Requirements: Specific insurance obligations when required by either party
4. Multiple Property Management: Additional terms for managing multiple properties under one agreement
5. Foreign Owner Provisions: Special terms when the property owner is not Indonesian resident
6. Digital Services: Terms for online listing and digital payment processing if applicable
7. Emergency Services: Procedures for handling emergency situations if included in service scope
1. Schedule A - Property Details: List and description of all properties covered under the agreement
2. Schedule B - Commission Rates: Detailed breakdown of commission structures and payment terms
3. Schedule C - Service Level Agreement: Specific performance metrics and service standards
4. Schedule D - Marketing Plan: Detailed marketing strategy and advertising commitments
5. Schedule E - Approved Contractor List: Pre-approved maintenance contractors if applicable
6. Appendix 1 - Required Documentation: List of required property documents and certificates
7. Appendix 2 - Property Condition Report: Standard format for property condition assessment
8. Appendix 3 - Agency Authorization Form: Standard power of attorney for agency services
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