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Management Lease Agreement for Indonesia

Management Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions under which a management company assumes responsibility for operating and maintaining a property on behalf of the owner. The agreement combines elements of both property leasing and management services, outlining specific responsibilities, performance standards, financial arrangements, and operational requirements in accordance with Indonesian Civil Code and relevant property management regulations. It includes provisions for compliance with local building codes, employment laws, and tax regulations while establishing clear accountability and risk allocation between parties.

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Management Lease Agreement

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What is a Management Lease Agreement?

The Management Lease Agreement serves as a crucial legal instrument in Indonesian property management, combining traditional lease elements with comprehensive management services provisions. This document is typically used when property owners wish to delegate both operational control and management responsibility to a professional management company while maintaining ownership rights. It's particularly relevant for commercial, retail, and industrial properties requiring professional management expertise. The agreement must comply with Indonesian Civil Code requirements and various regulatory frameworks, including building management regulations, employment laws, and tax provisions. The document typically includes detailed operational procedures, financial terms, performance metrics, and risk allocation mechanisms, making it essential for complex property management arrangements in Indonesia.

What sections should be included in a Management Lease Agreement?

1. Parties: Identification of the Property Owner and Management Company, including their legal status and registered addresses

2. Background: Context of the agreement, property details, and purpose of the management lease arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

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

5. Property Manager's Rights and Obligations: Detailed responsibilities and authority of the management company

6. Owner's Rights and Obligations: Property owner's responsibilities and retained rights

7. Management Services: Specific services to be provided by the management company

8. Financial Terms: Management fees, lease payments, operating expenses, and payment terms

9. Performance Standards: Required service levels and performance metrics

10. Staff and Employment: Requirements regarding staffing and employment responsibilities

11. Insurance and Liability: Insurance requirements and allocation of risks

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

13. Compliance and Permits: Regulatory compliance obligations and required permits

14. Termination: Termination rights and procedures

15. Handover Provisions: Requirements for property and operations handover upon termination

16. Governing Law and Dispute Resolution: Applicable law and dispute resolution procedures

What sections are optional to include in a Management Lease Agreement?

1. Force Majeure: Provisions for unforeseen circumstances - included when specific risk allocation for extraordinary events is required

2. Environmental Compliance: Special environmental obligations - included for properties with significant environmental impact

3. Intellectual Property: IP rights and protection - included when management systems or branded operations are involved

4. Anti-Corruption Compliance: Anti-corruption provisions - included when dealing with public facilities or government-linked properties

5. Foreign Investment Provisions: Special provisions for foreign investment compliance - included when foreign management companies are involved

6. Emergency Services: Special provisions for emergency response - included for high-risk or public access facilities

7. Marketing and Promotion: Marketing responsibilities and requirements - included for commercial properties requiring active promotion

What schedules should be included in a Management Lease Agreement?

1. Property Details: Detailed description of the property, including floor plans and facilities

2. Service Level Agreement: Detailed performance metrics and service standards

3. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

4. Operating Procedures: Standard operating procedures and management protocols

5. Maintenance Schedule: Planned maintenance schedules and procedures

6. Staff Organization: Organization structure and key personnel requirements

7. Insurance Requirements: Detailed insurance coverage requirements and limits

8. Permits and Licenses: List of required permits and licenses with renewal requirements

9. Handover Checklist: Detailed checklist for property and operations handover

10. Emergency Procedures: Emergency response and evacuation procedures

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions















































Clauses









































Relevant Industries

Real Estate

Commercial Property

Hospitality

Retail

Industrial

Office Space Management

Shopping Centers

Warehousing

Healthcare Facilities

Educational Institutions

Mixed-use Developments

Residential Complexes

Logistics Centers

Relevant Teams

Legal

Operations

Facility Management

Finance

Compliance

Property Management

Asset Management

Risk Management

Maintenance

Commercial

Relevant Roles

Property Manager

Facility Manager

Asset Manager

Real Estate Director

Operations Manager

Chief Financial Officer

Legal Counsel

Compliance Officer

Building Superintendent

Maintenance Manager

Property Development Manager

Leasing Manager

Risk Manager

Commercial Director

General Manager

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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