Settling Down

Basic Housing Rental Law for Expats in Indonesia

Hello FlokqJune 29, 2020

If it is your first time moving to Indonesia, there are some important things about the basic leasing laws that you should know to prevent any frauds caused by the malevolent landlord from happening. Generally, the contents of the leasing laws are similar to those in other places; it covers the duration of the rent, rental price & payment, and the rights and obligations of the properties. The differences are in the details of the laws such as the minimum rent duration, the deadline for the payment, and others. 

The leasing laws that contain the agreements between the landlord and the rentee must be presented in a written form and signed by both of the parties on materai 6000 (Indonesian stamps), so if there are any violations of laws conducted by the landlord or the rentee after the rental agreement is signed, the law violators can be brought to the court.

Rights and Obligations of the Rentee

Some rights and obligations should be acknowledged by the lessee and the landlord before signing the leasing agreement. The main right for the rentee is to live in a place that has been agreed on by both the tenant and the rentee. Other things are needed to be clarified and written on the leasing agreements including which party is responsible to pay for the electricity, water, internet, and other housing needs. Usually, the lessee is the one who’s responsible to pay those necessities, but it does not rule out the possibility for those things to be included in the rent payment. Negotiation is the key! 

The rentee is obliged to keep the property in good condition or upon the agreement. One of the obligations that are commonly included in a leasing agreement is a guarantee from the rentee, normally in a form of security deposit. The rentee needs to pay a security deposit at least equal to one month of rental price as a guarantee if there are damages in the property and other things and will be refunded once the lease is over. All of those things needed to be included in the leasing agreement to prevent misconceptions between the landlord and the rentee and make the boundaries of the rights and agreements of the parties clear.

Rental Price & Payments

If you are looking for a place through the internet, you may find the rental price stated on the website or social media accounts of the place. Generally, the price stated is the monthly or annual rental price. What is unique from the rent payment in Indonesia is that you need to pay the entire amount of money according to how long you are intended to stay plus a month security deposit. A small tip for you: if you are intending to stay for a long time, the landlord usually will give a special price if you pay the rent for a year at once. It is possible to rent a place monthly, but typically, the lease terms vary from one year to three years. In Indonesia, the rental prices are quoted in Rupiah. Specifically for the expats, the prices will be quoted in USD but the payment will be using Rupiah. 

The amount of money needed to be paid and the deadline for the payment should be stated in the leasing agreements to prevent the landlord from doing fraud such as raising the rental price one-sidedly and to make the rentee pay the leasing fee on time.

Duration of the Rent

Another thing that is important to be included in the leasing agreement in the duration of the rent. This is the most adjustable point as it is very possible to extend the duration of the rent. However, if you decide to move out of the place earlier than what you have agreed on, the chance for you to get a refund is very little because you have agreed to pay the rent for a certain time. 

Another tip for you: when you are not sure about the duration of your stay, it is better if you rent the place monthly so when you are repatriated early, you will not lose a lot of money. Why is the duration of the rent important to be stated in the leasing agreement? Because after the rentee and the landlord sign the agreement, the owner of the place will not be able to rent the place to other people nor sell the place, so you will not have to worry about having disputes with other people. 

Those are some things you should consider before renting an apartment in Indonesia. knowing the existing rules, it will provide convenience and comfort as long as you are going to rent an apartment in Indonesia. if you like this article, don’t forget to look at other articles on our blog. We provide several recommendations for coffee shops, malls, and other good places in Indonesia. we hope this article will help to explore and enjoy living in Indonesia

Read Also: Things to Check When Choosing a New Apartment