5 Things You Need to Know Before Buying or Building a Rental Property in Bali

img Adiel Bukitvista | February 12, 2022

As a paradise island, Bali is not only famous for vacation, but also as a property investment paradise for investors. Bali rental villas investment have always been and always will be a passive way of generating income. This is supported by the number of tourist visits to Bali always has great number from year to year. In 2019, almost 6.3 million foreign tourist visited the popular holiday destination in Bali. But in the middle of pandemic situation, how is the impact to tourism visits?

According to Coconuts Bali, in the midst of COVID-19 relaxation in Indonesia, by accelerating vaccination distribution to reduce infection rates, domestic tourism visits to Bali estimated around 3.6 million in 2021. By this data, it is certain that tourist visits to Bali will continue to soar from year to year.

But before you decide to build your property investment, you need to understand the basics. Like any other business, bali rental villas, especially luxury rental villas are difficult and require highly proper planning. You need to understand all the important things from zero. For example how to manage it, how to market your property and screening the tenants. But before you start to have a bad headache to planning all of these, is it worth it?

illustration of buying a property in bali

Why should you invest in Bali?

Generate more revenue

Bali rental villas is a good income generator from year to year

Imagine you don’t have to wake up in the morning and be ready to work from 9 to 5 everyday just to earn money for your living. The good thing about investing in rental property is you can have an ‘easier’ way to earn money. You even can go traveling and still get a good cash flow to your bank account. How nice is that?

Investing in rental properties means you’ll be pumping money into your bank account without putting out too much effort to maintain it. Rental property is a wise choice to invest and ensure financial security before retirement. It’s also a great way to earn extra income for you and your family.

Property values keep increasing

The value of the property will continue to increase as over time

As over time, the value of the property will continue to increase. This is due to the need for housing that will continue to grow in the future. This means that as property prices rise over time, you can make more money and get on your mortgage faster.You also have the option to sell your villa at the market price when you want to sell it. Villa rental investment is a long-term investment with guaranteed profits and has been on the rise for a long time. Below is our own property data graph of increased revenue year on year

Things You Should Know Before Investing In Bali Rental Villas

1. Choose a Strategic Location

The property buying process in Bali is not easy. Therefore, choose a strategic location that is easy to reach and high demand. This will also affect the selling value of the property. High demand locations usually have greater income opportunities than areas that are not strategic.

Bali has so many strategic location that you can choose. Tourist usually visits Canggu, Umalas, Kuta, Ubud, Nusa Dua, Nusa Penida and many more. These area are the most favorite area for tourist and you can start to explore these are to find your desire property.

2. Market Research

As property owner, it’s very important to keep updates with the market

Before starting to rent out your villa, you should research the market price first. This is helpful to make a strategic pricing for your property and ready compete with competitors’ prices. That way, you will be able to get the best price as well as maximum profit in investing. At Bukit Vista

One effective method is to conduct field research by visiting local markets, shopping districts, and popular tourist areas to observe consumer behavior and gather information on purchasing habits. It’s also helpful to network with locals and business owners to gain insights into the local market and cultural nuances. Thankfully, Bukit Vista has 10 years of experience observing the market to see which area experienced growth.


3. Find a Trusted Developer

choose a good performance developer to help you to build you property investment

Apart from market prices, it is important that you look for a trusted developer with good performance. It’s a good idea to choose a developer who has at least 5 years of experience in the property sector. Also pay attention to the facilities offered whether they are adequate and in accordance with the price. Because this will affect the selling value of the villa and your budget later

4. Plan out your budget

Planning out a budget before buying a property in Bali is crucial to ensure that you stay within your financial limits and avoid any unexpected expenses. Firstly, consider the type of property you want to buy and research the prices of similar properties in the area. Factor in additional costs such as taxes, legal fees, and any maintenance or renovation costs. It’s also important to consider the financing options available to you, whether through a bank loan or other means, and the associated interest rates and repayment terms.

Additionally, it’s recommended to work with a reputable real estate agent who can provide guidance on the current market trends and ensure that you get the best value for your investment.


5. Manage Properties Efficiently And Optimally

keep your property always well-maintain to your guest and avoid you from loses

The hardest part of investing in villas is managing it as an owner. Property management can make your villas well managed and successfully bring in tenants for you. If you don’t manage your villas properly, you may end up incurring heavy losses or even having to sell it early.
To make time and effort easier, investors may decide to use the services of a professional manager. Even so, that doesn’t mean you can’t manage your business completely because it remains the responsibility of the investor. You still have to make sure that your investment runs smoothly and brings a profit.

6. Get CHSE Certificate

CHSE is a certification that given by Ministry of Tourism and Creative Economy for business actors who apply the covid-19 health protocol standard for their business place

CHSE Certificate is Dimensions of CHSE certification, consisting of Hygiene, Health, Safety, and Environmental Sustainability. Meanwhile, three criteria that need to be met are management or governance, employee readiness, and visitor participation.

The granting of this CHSE certificate aims to provide guarantees to tourists for the implementation of Hygiene, Health, Safety, and Environmental Sustainability. This certificate is valid for one year and can be extended based on the results of the reassessment. Read to learn more about how to get CHSE Certification for your bali rental villas


Bottom Line

Bali Villa Rentals is a worthwhile investment. It will be very profitable in the long run if you understand the basics. It takes a considerable amount of time and effort to start earning steady profits and achieve the financial security you desire.

However, if you want to do everything right and easily, you can consult your investment planning with Bukit Vista. Since 2012, we’ve been working with our partners for taking professional property photography, managing OTAs, doing reservations, projecting revenue, and hosting our guests with delight. Want to know an inspire delight experience from our partner? let’s click here

By providing villa and property management services, we manage over 170+ unique properties, 12 Airbnb accounts and over 30,000 combined reviews.

So, are you ready to invest in rental villas and bring in profits without a headache? Consult your investment goals with us and our team will help you to ensure your investment runs smoothly and achieves your desired goals. Contact us today to get started.


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