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Short Term Rental Management Agreement Template for Indonesia

A comprehensive agreement governed by Indonesian law that establishes the legal relationship between a property owner and a professional management company for the purpose of managing short-term rental properties. The document outlines the responsibilities, revenue sharing arrangements, operational procedures, and service standards for property management services, while ensuring compliance with Indonesian property laws, tourism regulations, and local short-term rental requirements. It includes provisions for guest management, maintenance, marketing, and financial reporting, structured to protect both parties' interests while optimizing property performance.

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What is a Short Term Rental Management Agreement?

The Short Term Rental Management Agreement is designed for use in the Indonesian market where property owners seek professional management services for their short-term rental properties. This document becomes necessary when property owners want to delegate the day-to-day management of their rental properties to a professional management company, particularly for properties listed on vacation rental platforms or used for tourist accommodation. The agreement complies with Indonesian civil law, tourism regulations, and property management requirements, providing a comprehensive framework for the relationship between the owner and manager. It covers essential aspects such as service scope, fee structures, operational procedures, maintenance responsibilities, and revenue handling, while incorporating local legal requirements for property management and short-term rentals. This document is particularly relevant given the growth of Indonesia's tourism sector and the increasing popularity of managed short-term rental properties.

What sections should be included in a Short Term Rental Management Agreement?

1. Parties: Identification of the Property Owner and the Property Management Company, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a management arrangement

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Short-Term Rental', 'Management Services', 'Booking Platform', etc.

4. Appointment and Scope of Services: Formal appointment of the manager and detailed description of management services to be provided

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Manager's Obligations: Comprehensive list of the manager's responsibilities including marketing, guest screening, check-in/out, cleaning, maintenance

7. Owner's Obligations: Property owner's responsibilities including maintaining necessary permits, insurance, and property conditions

8. Financial Terms: Management fees, commission structure, payment terms, and handling of rental income

9. Booking and Rental Policies: Rules for setting rental rates, minimum stay requirements, cancellation policies

10. Maintenance and Repairs: Procedures for routine maintenance and emergency repairs, including spending authority limits

11. Insurance and Liability: Required insurance coverage and allocation of risks between parties

12. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes

What sections are optional to include in a Short Term Rental Management Agreement?

1. Multiple Property Provisions: Additional terms for owners with multiple properties under management - used when the owner has more than one property

2. Property Staff Management: Terms regarding management of on-site staff - included when the property has dedicated staff

3. Revenue Guarantees: Minimum revenue guarantees by the management company - optional section for premium management services

4. Special Amenities Management: Specific terms for managing special facilities like pools, gyms, etc. - included when applicable

5. Marketing Commitments: Specific marketing obligations and budgets - included for properties requiring enhanced marketing

6. Exclusivity Provisions: Terms preventing the owner from using other management services - included when exclusive rights are granted

7. Property Development Provisions: Terms regarding ongoing or planned property improvements - included for properties under development

What schedules should be included in a Short Term Rental Management Agreement?

1. Schedule A - Property Details: Detailed description of the property, including address, features, amenities, and inventory of furnishings

2. Schedule B - Fee Structure: Detailed breakdown of management fees, commission rates, and other charges

3. Schedule C - Service Level Agreement: Specific performance metrics and service standards for the management company

4. Schedule D - Maintenance Schedule: Regular maintenance tasks and their frequency

5. Schedule E - Approved Contractors: List of pre-approved contractors for maintenance and repairs

6. Appendix 1 - House Rules: Rules and regulations for guests staying at the property

7. Appendix 2 - Emergency Procedures: Emergency contact information and procedures

8. Appendix 3 - Marketing Plan: Detailed marketing strategy and platform listings

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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