Lease renewal in Bali

When should conversation start?

Not on the day keys already need handing over. Take actual current agreement text, appendices and messages on earlier changes; then record the dates actually stated and notice the parties agreed. If something is unclear, it is a separate question for directed clarification, not a reason to fill the gap with a familiar rule.

The short answer

First assemble a renewal file: current text, asset and handover scope, dates, payment calendar, receipts and open work questions. Then separate three decisions: whether to renew, on what terms and how to record agreed outcome. A new rent is only one line in that map.

1. Start with current text, not memory

Put signed agreement version, appendices, confirmed changes and actual payment calendar in the renewal file. On the first sheet, separately list asset or unit, parties, start and end of period, keys and access handed over, deposit or other security mechanism if it appears in text, and everything that remains open.

Do not carry something into a new version because ‘this is how we always did it’ without finding its basis. An oral arrangement, old message and signed appendix have different boundaries. If they conflict, first mark the conflict and its answer holder.

2. Separate decision to renew, terms and document

Agreement to discuss renewal is not agreement on term, rent, payment, services, access or new responsibility for works. A working map should hold three statuses: parties’ intent, terms under discussion and the document that records outcome after agreement.

This order removes a dangerous grey zone: one person has stopped seeking a new tenant while another still believes nothing is signed. The register does not decide the question itself, but it makes it visible to parties and advisers.

3. Rent review is a request and basis, not a market proclamation

Gather what each party treats as basis for a proposal: period, asset, fit-out, services, actual costs or available comparisons. Do not merge unlike options into one figure or call something an average market without transparent source and matching assumptions.

The document only needs two columns: party proposal and its basis. A final number exists only after real agreement or a process that must be checked under the actual agreement and applicable scope.

4. Payment and tax context should not be reconstructed after the fact

DJP publishes a distinct rule about income from renting land and/or buildings and related payment lines. This supports one practical but bounded step: in the renewal file, name every amount, period and basis clearly enough to take for review, rather than collapsing it into unexplained ‘rent plus services’.

This is not tax instruction. Do not import rate, taxpayer or reporting process from another case. Instead, keep the question, party who will check applicability and source records needed.

5. After agreement, check more than price

Before closing renewal file, check asset, parties, period, calendar and payment method, services and exclusions, access, open works, exit path and document version. Questions without answer do not disappear: either exclude them from agreed scope or carry them in a separate line with owner of next step.

Both parties need outcome in an understandable version. A link to a file without version and date leaves the same uncertainty that renewal was meant to prevent.

Decision steps

1. Assemble renewal file

   Reconcile current text, appendices, changes, dates, payments, access and open questions.

2. Record intent

   Separate intent to discuss or renew from agreed terms and signed outcome.

3. Review terms

   For every term, state proposal, basis, answer holder and agreement status.

4. Take out specialist questions

   Take distinct agreement, licensing or tax questions for directed review.

5. Record version

   After agreement, check document, date, attached terms and final version available to both parties.

What to check

Sources

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