Costs You Need to Cover in Renting a Villa in Bali

In this case, you need to consider it as a basis before having a villa, because these unexpected costs arise from the daily operations of your villa, such as general costs that you need to know about.

Income Tax

The most important thing is taxes, as a villa owner, you are taxed on the income generated from rental bookings. According to Miel Property Consult a tax professional to understand your tax obligations and ensure compliance with local tax laws. Land taxes are usually much cheaper than income taxes. When you rent land in Bali, you usually pay land taxes for the duration of the lease. Owning and operating a villa rental business in Bali can be a profitable venture, but it requires careful financial planning. By knowing and accounting for the various costs outlined in this article, you can run a successful and sustainable villa rental business in Bali.

Maintenance

In this case, maintenance costs can include repairs, renovations, landscaping, pool cleaning, and pest control. Setting aside a budget for maintenance is essential to maintaining the quality and appeal of your property. Saving a portion of your rental income as a reserve fund for maintenance is the most common practice among villa owners who rent out their properties. For routine maintenance, Miel Property suggests setting a budget between 5% of your annual rental income.

Employee

Hiring employees to manage your villa is common in Bali. This cost includes salaries for housekeepers, gardeners, security guards, and other staff members. According to Miel Property, to comply with local labor laws and pay your employees a fair wage. Indonesia has what is called UMK (Uah Minimum Kabupaten), which refers to the minimum monthly wage regulations that employers must adhere to. Or you can work with a property company like Miel Property to help implement property management for your villa.

Electricity and Internet

These two instruments can be very large, especially for electricity, because the villa uses quite a lot of power, such as the swimming pool, or kitchen needs.

Internet

Offering reliable, high-speed internet is a must for everyday life in this day and age. So, unless you’re trying to market your villa as a hermit’s retreat, you’ll need to factor the cost of internet service into your overall operating costs.

Electricity

Electricity costs can be quite high, especially if your villa has a large power source and offers various amenities such as air conditioning, heating, or a smart home system. Implementing energy-saving measures and being mindful of your electricity usage can help reduce these costs.

Safety

Banjar (community association) is a well-known community in Bali, and it is a common practice. In addition to ensuring security in the surrounding area, Banjar dues also support various community initiatives, including local events and ceremonies. The fees for each Banjar vary, depending on the local rules and policies. For a villa used as rental accommodation, the local Banjar will charge you, the rental business owner, between IDR 50,000 and IDR 300,000 per month.