Property management in Indonesia: Full Guide

Are you looking for village management in Bali? Or a property manager in another Indonesian city or region? Owning and managing property in Indonesia can present challenges, especially for those unfamiliar with the local regulations and cultural practices. That’s where property management companies come in. This comprehensive guide will explore the ins and outs of property management in Indonesia, including the benefits of hiring a property management company, the types of services they offer, and tips on choosing the right company for your property.

Whether you are a foreigner who has just purchased a property in Indonesia or a local investor looking to outsource property management, this guide will provide you with the knowledge and tools to make informed decisions and ensure the success of your property investment.

1. Handling property bookings

Booking software, also known as a Property Management System (PMS), can streamline the process of accepting bookings in Indonesia without manual review. Guests can make reservations without your assistance by utilizing an external booking system. Sometimes, the booking system can also handle payments, which is incredibly convenient when you are not physically present.

Booking.com

Booking.com is one of the world’s largest websites for booking accommodations, including rooms, apartments, hostels, hotels, villas, and guesthouses. Listing your property on Booking.com can provide numerous benefits, such as:

• Broad exposure: With many users, Booking.com can help your property gain more visibility.
• Payment handling: The platform can process payments, including the option for guests to pay before arrival.
• Commission-based pricing: Booking.com charges a commission on each booking, eliminating the need for upfront fees.
• Group Opportunity Center: This section provides hosts valuable tips for increasing bookings, benefiting hosts and Booking.com.
• Guest reviews: Guests can leave reviews about your property, building your reputation.
• Customization options: Booking.com allows for customized listings and pricing options.

What fees does Booking.com charge?

The fees Booking.com charges vary between 10% and 25%, with an average of 15%. The cost is dependent on your location in Indonesia and your cancellation policy.

Airbnb

Airbnb is another popular booking platform commonly used for apartments, villas, and single-room listings. Some of the benefits of using Airbnb for your property in Indonesia include the following:

• Broad audience: Airbnb is a well-known platform that can help you reach a large audience.
• Ease of use: Airbnb’s platform is user-friendly, making listing your property and managing bookings simple.
• Host protection: Airbnb provides host protection insurance, protecting against certain damages or losses during a guest’s stay.
• Payment security: Airbnb handles all payments on the platform, so you don’t have to manage the payments.
• Trust and reputation: Airbnb’s reliable reputation can increase guest confidence in booking your property.

What fees does Airbnb charge?

Airbnb charges a 3% service fee for hosts and a 14% service fee for guests in Indonesia. The cost is calculated based on the subtotal price, including the price per night and additional fees.

2. How to receive payments in Indonesia?

Platforms such as Airbnb and Booking.com transfer the money you earn to your bank account. For that, you can use any bank account. Do you want to give guests the possibility to pay with a card at your property or transfer the money? Then you should consider opening an Indonesian bank account to receive payments in Indonesian rupiah (IDR). There are several ways to receive these payments.

The first way is to open a local bank account. Indonesia has many different banks, such as Mandiri Bank, Bank Central Asia (BCA), Citibank, Bank Danamon, Maybank, PermataBank, Hongkong Shanghai Banking Corporation (HSBC), and Bank Negara Indonesia (BNI).

Bank Mandiri is the largest bank in Indonesia and has branches in almost every city or town. BNI is also one of the largest banks and the first bank owned by the Indonesian government. 

Most foreigners choose to open a bank account at PermataBank, as this is the most accessible bank for foreigners. It will only take a few hours to open a bank account at Permatabank. Foreigners only need to deliver a copy of their passport, a copy of their KITAS or KITAP visa, and proof of residence in Indonesia.

Fees

Indonesian banks charge a monthly fee of IDR 15,000 ($0.95) to IDR 20,000 ($1.26). Some banks charge different prices for business accounts.

Best bank for foreigners

Opening a local Indonesian bank account can be beneficial. Still, foreigners who own property in Indonesia benefit the most from a Wise bank account. Wise is a bank that offers multi-currency accounts with a debit card. This account allows storing 50 different currencies (including the Indonesian rupiah). These currencies can be changed for each other within seconds in the smartphone or desktop application. 

Wise is ideal for people who own property in Indonesia and rent it out, as they offer clients the possibility to pay for the property in their currency. 

Do you want to open a bank account at Wise? Everybody can do so within 10 minutes by clicking here.

3. Cleaning and maintenance of your property

Cleaning and maintaining your property is important to villa management in Bali and other regions. Whether you use your real estate property in Indonesia only for yourself or rent it to guests doesn’t matter: you want to keep your house clean and well-maintained, which you do by hiring a cleaning service company. These companies have trained and experienced staff and offer their services at relatively low costs.

Daily or weekly routine cleaning

Indonesian cleaning service companies offer different kinds of cleaning services. The most common is regular cleaning, which involves routine cleaning of the entire villa or apartment, including dusting, vacuuming, mopping, and cleaning. This can be done daily, twice or thrice a week, or only when new guests rent the property. It depends on the preference of the property owner.

Deep cleaning, gardening, and pool maintenance

Deep cleaning involves cleaning sofas, beds, outside areas, the garden, or the pool. Most cleaning companies offer special services for pool cleaning and gardening, so you can fully outsource the cleaning and maintenance of your property to the same company.

Finding the right cleaning company

Finding a trustworthy cleaning service company in Indonesia can be challenging. When choosing a company, consider the following factors.

1. Check the reputation: Especially in Indonesia, it’s essential to read reviews and experiences others have with a company before accepting their offer.
2. Make sure they offer all the services you need: It’s better to choose a company that provides all the services you need, so you don’t have to use different companies for different tasks.
3. Check the availability: Make sure the cleaning service company can clean your property on the frequency you wish them to clean. Also, check the company’s opening hours and ask if they can handle last-minute cleaning requests.
4. Choose a company near your villa: Choosing a company near your property offers many benefits. The most important use is that a closely located company can easily handle last-minute requests. 
5. Pricing: Make sure you receive clear and transparent pricing. That way, you know what you receive for the price you pay.

Costs of housekeeping

The housekeeping costs and fees for villa management in Bali depend on the kind of staff you want to hire. Outsourcing the housekeeping to a cleaning company might be more expensive. Still, these are the general average monthly salaries of housekeepers:

• Cleaner (hourly wage): IDR 52,000 ($3.28) per hour.
• Part-time cleaner (four hours daily): IDR 1.04 million ($65.52) per month.
• Staff for gardening and pool maintenance (twice or thrice weekly): IDR 1 million ($63) per month.

4. Receiving guests for check-in and check-out

Are you only sometimes present at your villa or apartment in Indonesia? You can leave receiving guests to the housekeeper. They welcome guests, show them around, tell the house rules, and hand over the keys to the guests. A housekeeper can also make a check and take the key when checking out.

5. Property security in Indonesia

Property security in Indonesia is, of course, very important. Indonesia is a safe country for foreigners, although they may be more likely to become crime victims than Indonesian locals. The Indonesian police can be trusted. They are honest and helpful to foreigners, although it’s important to note that there may be corruption within the police. 

You can ensure the security of your property by yourself in several ways. For example, installing security cameras can secure your villa against burglars and unwelcome guests. But in Indonesia, building a relationship with your neighbors might be an even more important step for safety and security. This way, you protect your property and let guests stay in your villa with peace of mind.

Here are some practical ways to secure your property:

• Maintain your property regularly: Neglected properties are more attractive to criminals. Therefore, it’s essential to maintain your property regularly, even if you’re not living there. Hire household staff or a property management company to clean and check your property regularly.
• Build relationships with your neighbors: Knowing your neighbors is crucial, especially if you live in a foreign country like Indonesia. A good relationship with neighbors can improve social relations and create a community that looks out for each other. Your neighbors can also inform you of any issues with your property or land.
• Get property insurance: Although it won’t deter criminals, property insurance can protect you from losses due to theft or burglary.
• Enhance security measures: Installing security systems like cameras, alarms, and locks can deter potential burglars. In particular, security cameras are helpful in tourist areas like Bali. They can store data on the cloud and allow you to watch images from the camera anytime and anywhere.
• Hire a property management company: A property management company can handle the security of your property by monitoring it with security cameras and installing a security guard at your property. This way, the company can respond quickly to any incidents or risks. Another advantage is that a property management company can provide cleaning services, take care of the facilities, and handle bookings if you rent your property.

Costs of property security

Costs depend on the length of security. Do you want 24-hour security? Then you have to hire three security guards. Most properties in Indonesia only have night security, which requires only one security guard. The average salary of a security guard in Indonesia is between IDR 1.8 million ($120) and IDR 2.2 million ($150) per month.

Which property manager to choose for security?

Hiring a private security guard in Indonesia is possible and is sometimes cheaper than using a company. However, property managers offer several other advantages that a private individual cannot. If you choose a company with a good reputation, you can assume safety and reliability. Also, the company can help when there are problems and arrange replacements when the employee is sick. So a property manager takes your worries out of your hands, saving you more time and money in the long run.

Ask other property owners for recommendations for property managers and security guards. Always look carefully at the reviews and experiences others have with the company or individual before engaging with a party.

6. Property utilities in Indonesia

Do not forget about the property utilities when buying property in Indonesia. These are the water supply, gas, electricity, internet, cable TV, waste disposal, and community costs.

Water

The local water utility or a private water supplier can supply tap water. In Jakarta and Bali, PDAM is a state-owned company providing households with clean water. You can open a new account by contacting PDMA through their website, local office, or customer service hotline. It’s important to note that drinking tap water in Indonesia is not recommended.

Electricity

Connecting your home to the electricity supply might be challenging, as there might be a waiting list. Most villas in Bali, Lombok, and other regions have a small device called a Pre-Paid Meter (MPB) installed where property owners can enter a 20-digit number to receive electricity. You can buy this 20-digit number at almost any mini-market, in online bank apps, and in e-commerce applications like Shopee, Tokopedia, Gojek, and Grab.

Internet (WiFi)

A good internet connection in your villa is important, especially when digital nomads rent your villa and want to work remotely. The internet connection in Indonesia is getting better and faster. In several areas, such as Bali and Jakarta, Fiber Optic connections are available and offered by providers such as CBN, Neuviz, and GlobalXtreme. It’s easy to open an account at these providers, which you can do at their website.

Cable TV

These days people stream more and more from the internet, but cable TV is still important in your villa. Providers such as Trans TV and Metro TV offer different kinds of packages at low costs, for about IDR 200.000 ($14) per month.

Community contributions

Especially in Bali, community relations are important. Every property owner has to contribute to the local community, called Banjar. The Banjar greatly influences the district regarding security and organization within the neighborhood. They also organize social activities and religious ceremonies within the community. Even though you don’t attend the activities or ceremonies, it is recommended to contribute to the Banjar. Contributing shows that you respect the local culture and traditions, making the local community more likely to accept and respect you. 

Waste disposal

There are several ways of waste disposal in Indonesia. There is a local organized waste pickup by the Banjar (in Bali). Unfortunately, this waste mostly ends up on illegal dump sites. That’s why it is recommended to use a private company that promotes waste separation and recycling. In Bali, several companies like Eco Bali Recycling pick up the waste and separate and recycle it the right way. The costs depend on the household size but are usually less than $120 annually.

Costs of utilities in Indonesia

• Water: Average IDR 100.000 ($7) per month.
• Electricity: Average IDR 1.5 million ($100) to IDR 2.5 million ($170) per month (for a 2–3-bedroom villa).
• Gas: Between IDR 5.950 ($0,40) and IDR 7.455 ($0,50) per kilogram (cylinders).
• Internet: Average IDR 1 million ($70) monthly.
• Cable TV: Average IDR 200.00 ($14) monthly.
• Waste disposal: Average IDR 1.5 million ($100) per year.
• Community costs: Average IDR 100.000 ($7) to IDR 300.000 ($21) per month (depending on the region).

Outsourcing property management

From cleaning the property to welcoming guests and managing the utilities: property management involves a lot. Therefore, it is wise to outsource these tasks to a professional property management company, as it brings the following benefits:

• Time-saving: Managing rental properties can be time-consuming, and outsourcing can save time.
• Expertise: Property management companies have the knowledge and resources to manage various tasks involved in rental property management.
• Cost-effectiveness: Outsourcing property management can be more cost-effective, as companies can offer competitive pricing and economies of scale.
• Risk management: Outsourcing property management can mitigate risks associated with being a landlord, such as legal liabilities and financial risks.
• Professional image: Using a property management company can present a professional image to guests and increase the value of your property.

Frequently Asked Questions (FAQs)