Managing property in a foreign country can be challenging. It costs a lot of time and effort but also requires understanding how certain things are handled in other countries. Property management in Bali is essential for those renting property in Bali. Whether you just bought a villa in Bali or are a potential investor looking into property management, this guide provides all the knowledge and tools needed to ensure the success of your real estate investment.
1. Property bookings and reservation
Guests want to make their reservations as easy as possible. That’s why using a Property Management System (PMS) is important, where guests can make villa reservations in Bali without your intervention. These systems can automatically check when your property is still available for rental to avoid renting your villa out more than once on the same date. These booking systems can also handle payments, which is incredibly convenient, especially when you cannot accept the payment on-site.
Property owners who rent out their property in Bali should list their property on two platforms:
Using a widely accepted booking platform such as Booking.com creates much exposure for your property. Besides hotel rooms, guests can also book a villa through Booking.com. You can easily add your property in Bali to Booking.com by following these steps:
- Go to the sign-up page and click on Get Started.
- Enter your email address and click on Continue.
- Enter your first and last name and phone number, and click Next.
- Enter a password and click on Create account.
- Now, search for your property type and click on List your property.
- Enter the information about your property that Booking.com asks for.
- Booking.com will review your registration and send you a confirmation email once your property is approved.
- You can access the extranet (property dashboard), add extra information about your property, add prices, and update availability.
- Once you’re ready, you can publish your property on Booking.com.
Booking.com charges a fee per booking, which varies between 10% and 25% and depends on the location and cancellation policy. Most villa owners in Bali pay a 15% fee per booking to Booking.com.
Get help with property management in Bali
Airbnb is another widely used platform to book accommodations, such as villas and apartments. Listing your property on this platform exposes your accommodation to millions of users. The platform is also great for building a reputation in your area. Guests can leave a review after staying at your property, just like on Booking.com.
You can list your property on Airbnb by following these steps:
- Go to the sign-up page to create an account.
- Enter the location, amount of guests you can host, and the type of property, and click on Get Started.
- Click again on Get Started and Next to choose the type of property you want to list.
- Answer all questions in the following steps.
- Airbnb will check your property and email you once your listing is approved.
- It can take Airbnb 72 hours to show your property in the search results.
In our article about listing your Bali villa on Airbnb, we give tips to receive more bookings from Airbnb.
Airbnb in Bali charges a 3% fee over the subtotal price to all property owners who rent out their property in Bali. All guests pay a 14% fee over the subtotal price when booking accommodation.
2. Welcoming guests for check-in and check-out
Are you not always in Bali? It may be beneficial to delegate the responsibility of receiving guests to a housekeeper. A housekeeper can welcome guests, provide a property tour, explain any necessary house rules, and hand over the keys to the guests. Additionally, the housekeeper can perform a final check and collect the keys when guests check out, giving you peace of mind while you are away. You can read more about how to find a housekeeper in Bali later in this article.
3. Receiving payments on a local bank account
Opening a local bank account in Bali is the easiest way to receive payments in Indonesian rupiah (IDR). Mandiri Bank, Bank Central Asia (BCA), PermataBank, and Bank Negara Indonesia (BNI) are some of the available options.
Monthly bank fees in Indonesia range from IDR 15,000 ($0.98) to IDR 20,000 ($1.30), with some banks charging different rates for business accounts.
Best Indonesian bank account for foreigners
PermataBank is the best Indonesian bank for foreigners. You can go to a PermataBank office in Bali and only show your passport and a copy of your KITAS or KITAP to open a bank account. This process will take about three to five hours. Make sure to be at the office a few minutes before opening, as there will be a queue.
Here is an overview of the PermataBank offices in the most popular places in Bali:
- PermataBank Canggu (location)
- PermataBank Kerobokan (location)
- PermataBank Seminyak (location)
- PermataBank Kuta (location)
- PermataBank Nusa Dua (location)
- PermataBank Ubud (location)
Multi-currency bank account
Wise is a bank that offers multi-currency accounts with a debit card and is beneficial for foreigners who own property in Indonesia. Clients can pay in their currency as the bank allows storing 50 different currencies, including IDR. It is easy to set up a Wise account in just 10 minutes.
Do you want to open a bank account at Wise? Everybody can do so within 10 minutes by clicking here.
4. Keeping your property clean and maintained
Keeping your Bali property clean and well-maintained creates a comfortable and safe living environment for you or your guests. Regular cleaning and maintenance ensure the property is free of dirt, dust, and other potential hazards such as mold or pests.
Besides that, a well-maintained property is more attractive to potential buyers or renters and can command a higher price. Regular maintenance can help prevent costly repairs or replacements down the road.
Types of cleaning
When it comes to property cleaning in Bali, there are different types of cleaning:
- Regular cleaning: This involves basic cleaning tasks such as dusting, sweeping floors, removing trash, and changing bed linens. It can be done two or three times a week.
- Deep cleaning: This is a more thorough cleaning process to remove dirt, grime, and stubborn stains that regular cleaning may not handle. Deep cleaning is less frequent and is usually done on a bi-weekly or monthly basis.
- Gardening: By having the garden maintained weekly, the garden will always look beautiful and make the stay of guests more pleasant.
- Pool maintenance: This involves cleaning and maintaining the swimming pool in Bali to ensure it is in optimal condition for use. Tasks can include checking the pH level, cleaning filters, and adding chemicals to the water.
How to find a housekeeper or maid?
Cleaning a property in Bali can be a time-consuming and physically demanding task. Depending on the size of the property, it can take several hours to clean thoroughly. While some homeowners may prefer to clean their property themselves, others may outsource the task to professional cleaners.
Outsourcing the cleaning of your property to a housekeeper or maid can have several benefits. It frees up your time to focus on other activities or work. Secondly, a professional has the necessary equipment and expertise to clean your property thoroughly.
There are four ways to find a housekeeper or maid in Bali:
- Staffing agencies: If you want an experienced housekeeper, staffing agencies can be a good option. However, they often charge a fixed price for each new hire, which can become expensive. Despite this, staffing agencies remain a great way to find a maid.
- Referrals: Word of mouth can be an excellent way to find a trustworthy and reliable housekeeper in Bali. Asking friends or colleagues who live in Bali for recommendations can help you find someone with a good reputation. You can also ask locals or neighbors for maids they recommend. If referrals come from trusted sources, it can help to avoid scams and fraud.
- Online Platforms: Online platforms like Facebook groups can help connect you with potential candidates. Some platforms have review systems that allow you to read other people’s experiences with the housekeeper, helping you filter out inefficient and untrustworthy ones. You can also post a job listing on these platforms and let the candidates contact you.
- Property management companies: Property management companies in Bali often offer housekeeping services. They typically have a pool of pre-screened candidates who are trained and experienced in housekeeping. It can save you time and effort in finding a suitable housekeeper. Property management companies also provide insurance and security for their staff, which can give you peace of mind.
To ensure a successful hiring process for a maid, it is recommended to take some precautions. Always request pre-employment requirements to verify the applicant’s real name, address, and contact number to avoid any fraudulent activity. Conduct an interview to learn about the candidate’s experience and create an employment contract outlining the scope of responsibilities, salary, and benefits to prevent misunderstandings.
Costs of a housekeeper
The costs for a housekeeper in Bali may fluctuate based on various aspects, such as experience. A maid with extensive work experience typically demands higher compensation than a starter. Keep in mind that although newer housekeepers may be cheaper, the cost of training them will add to the total overhead expenses. The average hourly salary for housekeepers or maids in Bali is IDR 45,000 ($2.93).
5. Security of your property
Bali is one of the safest parts of Indonesia and Southeast Asia. However, there is always the risk of becoming a victim of burglary or theft. Property owners can protect their property by taking several security measures.
How to secure your property?
There are four key measures you can take to secure your villa in Bali:
- Use high-quality locks in your villa: Burglars always seek an easy target. Always use high-quality locks on all doors and windows, and ensure broken doors or windows are repaired immediately after finding they’re broken.
- Install security cameras and lighting: Security cameras discourage strangers from tampering with your property and allow you to monitor your property anywhere. This gives you peace of mind when you are away from Bali and offers your guests a safe feeling.
- Know your neighbors: Building a strong relationship with your neighbors is important, especially in Bali. They can and will monitor your property when you are away and alert you if anything unusual happens.
- Hire a security guard: Security guards monitor things happening at your property. Having a security guard at your house 24 hours a day isn’t necessary, though hiring one for during the night is a good idea.
How to find a security guard?
You can find a security guard by asking your network for recommendations. Hiring a security guard with a good reputation in Bali is important.
Cost of property security
The costs of property security depend on the security measures you take. Providing your villa with high-quality locks could cost between IDR 2 million ($130) and IDR 6 million ($390) while installing security cameras can cost between IDR 3 million ($195) and IDR 8.8 million ($572).
The average rate of a security guard is IDR 62,000 ($4.03) per hour.
Get help with property management in Bali
6. Property utilities in Bali
Owning a villa means taking care of the property utilities: tap water, electricity, gas, internet, cable TV, waste disposal, and community contributions. Below is an explanation of how you can apply for and manage these property utilities in Bali. We will share the costs of these utilities at the end of this chapter.
A newly built villa needs to be connected to the local water system, which the constructor will take care of at most times. You can choose between the local water supplier, which is the state-owned Perumda Daerah Air Minum (PDAM) Tirta Sewakadarma for Bali. You can go to their office in Denpasar to open an account by providing identification and proof of residence. It is also possible to choose a private water supplier.
Important note: You cannot drink tap water in Bali, as the water quality isn’t great. It is safer to buy bottled, which you can buy in almost every store in Bali.
Villas in Bali can be connected to the power network, although this can take over a year due to long waiting queues. That’s why most (new-built) properties in Bali have a pre-paid meter (MPB). Property owners can buy a voucher or pre-paid card and enter the unique 20-digit number on the card in the keypad of the pre-paid meter. The meter will then automatically add the value of the voucher to the electricity credit balance. After that, you can use the electricity. Once it runs low, the pre-paid meter will warn you with a beeping.
Almost all supermarkets and minimarkets in Bali sell pre-paid electricity vouchers, such as Indomaret, Alfamart, Minimart, and Circle K. It is also possible to buy a pre-paid code online through various e-commerce applications such as Tokopedia, Shopee, Gojek, and Grab.
As most areas in Bali have no gas pipelines, property owners have to use gas cylinders for cooking and heating. These cylinders are sold at gas stations and supermarkets (minimarkets as well). Most stores allow you to switch empty cylinders for full cylinders.
Property owners who rent out their villa should ask their maid or housekeeping to check the gas tank and switch them if needed regularly.
A reliable and stable internet connection is important nowadays, especially when renting your villa out to tourists, expats, or digital nomads. Luckily for them, the internet connectivity in Bali is steadily improving. Several internet providers deliver internet and hardware routers, such as CBN, Neuviz, and GlobalXtreme. Signing up for their services can be done on their website.
Although most people use streaming services to watch their favorite TV shows and movies, a property owner might still want to provide cable TV in their villa. IndiHome by Telkom Indonesia, First Media, Transvision, MNC Play, and K-Vision are well-known cable TV providers.
The Banjar (local neighborhood community) organizes waste pickups in Bali, and you pay for this through community contributions. This sounds nice, but unfortunately, most collected waste ends up in illegal dump sites across the island, which leads to environmental pollution.
That’s why we advise using a private waste disposal company such as Eco Bali Recycling. This company prioritizes waste separation and recycling in an environmentally friendly way. You can request their waste collection service on their website.
The Banjar is the local neighborhood community that plays an important role within the district. They are responsible for maintaining security and order and organizing social and religious events.
It is important to contribute to the Banjar financially. This way, you contribute to the neighborhood and show respect for the local culture and traditions. It will make integrating into the community and building positive relationships easier.
Cost of utilities in Bali
- Water bill: IDR 100,000 ($6.50) per month on average (depending on the water usage).
- Electricity bill: IDR 1,445 ($0.09) per kWh for households. A 2-3-bedroom in Bali spends between IDR 1.5 million ($97.50) and IDR 2.5 million ($163) on electricity monthly on average.
- Gas: Around IDR 12,600 ($0.82) per 1 liter (1/4 gallon).
- Internet: Around IDR 1 million ($65).
- Cable TV: Between IDR 100,000 ($6.50) and IDR 460,000 ($29.90) monthly.
- Waste disposal: The price at Eco Bali Recycling starts from IDR 115,000 ($7.48) per month.
- Community contributions: IDR 100,000 ($6.50) to IDR 300,000 ($19.50) monthly.
Outsourcing property management in Bali
Owning a rental property in Bali can be an exciting opportunity, but it comes with its own challenges. From cleaning and maintenance to guest check-ins and utility management, the tasks involved in managing a property can quickly become overwhelming. That’s why outsourcing to a professional property management company can be a smart move.
Property management costs
The cost of Bali property management varies per situation. Bali villa management companies usually charge an average monthly fixed rate of IDR 4 million ($260). Some companies charge a monthly percentage of the gross rental income.
Imagine saying goodbye to concerns over bookings, cleaning, or guest communications. Having a property manager in Bali ensures seamless check-ins and check-outs, maintains the security of your property, and adeptly manages all reservations. You also have the flexibility to delegate just a single aspect of these tasks to the property manager.
Get help with property management in Bali
Frequently Asked Questions (FAQs)
How much does Bali villa management cost?
Bali villa management companies monthly cost around IDR 4 million ($260). Depending on their tasks, some companies charge a monthly commission of about 20%.
How much do villa staff get paid in Bali?
How much villa staff in Bali gets paid depends on their job. Most villa staff earn an hourly rate of about IDR 45,000 ($2.93).
Are villas in Bali profitable?
Villas in Bali can be very profitable as millions of tourists visit the island yearly. The ROI in Bali (Return on Investment), as well as the rental yield, varies per region and villa size.