The Legal Tenancy Agreement serves as a foundational document for establishing rental relationships in Indonesia, whether for residential or commercial properties. It is essential for protecting the interests of both landlords and tenants while ensuring compliance with Indonesian property laws and regulations. This document is used when formalizing a property rental arrangement and includes crucial details such as rental terms, payment schedules, maintenance responsibilities, and termination conditions. The agreement must align with the Indonesian Civil Code (KUHPerdata), Law No. 1 of 2011 on Housing and Settlement Areas, and relevant regional regulations. A properly structured Legal Tenancy Agreement is vital for preventing disputes and providing legal certainty in rental relationships within Indonesian jurisdiction.
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1. Parties: Identification and details of the Landlord and Tenant, including their legal names, addresses, and identification numbers
2. Background: Context of the agreement and brief description of the property being leased
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Comprehensive description of the rental property, including address and specific inclusions/exclusions
5. Term and Commencement: Duration of the lease and start date
6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit
8. Utilities and Service Charges: Responsibility for utility payments and other service charges
9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs
10. Tenant Obligations: General obligations and restrictions on the tenant's use of the property
11. Landlord Obligations: General obligations of the landlord including maintaining the property's habitability
12. Insurance: Required insurance coverage and responsibilities of each party
13. Default and Remedies: Events of default and available remedies for both parties
14. Termination: Conditions and procedures for terminating the agreement
15. Governing Law: Specification of Indonesian law as governing law and jurisdiction
16. Notices: Process and addresses for serving official notices between parties
17. Execution: Signature blocks and execution requirements
1. Foreign Tenant Provisions: Additional provisions required when the tenant is a foreign national, including visa requirements and specific regulations
2. Subletting: Terms and conditions for subletting, if permitted
3. Renovation and Alterations: Specific terms regarding property modifications, needed when alterations are anticipated
4. Option to Renew: Terms for lease renewal, included when offering tenant renewal rights
5. Force Majeure: Provisions for unforeseen circumstances affecting the tenancy
6. Pets: Terms and conditions regarding keeping pets on the property
7. Parking: Specific provisions regarding parking facilities and rights
8. Common Areas: Rules and access rights for shared facilities, needed for apartments or shared buildings
1. Schedule 1 - Property Inventory: Detailed list of furniture, fixtures, and fittings included in the rental
2. Schedule 2 - Property Condition Report: Detailed description of the property's condition at the start of tenancy
3. Schedule 3 - House Rules: Specific rules and regulations for the property, particularly relevant for apartments
4. Schedule 4 - Payment Schedule: Detailed breakdown of rent, deposit, and other payment obligations
5. Appendix A - Property Photos: Photographic evidence of property condition at commencement
6. Appendix B - Building Floor Plan: Floor plan showing the leased premises and common areas
7. Appendix C - Utility Reading Records: Initial utility meter readings at the start of tenancy
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