What is the Revenue Sharing Mechanism & Its Benefits?

img Adiel Bukitvista | February 28, 2024

Hi there, I’m Adiel, and throughout my stay in Bukit Vista, I’ve learned much about the Bali real estate market. With more than 100 property partners, we focus on maintaining rental properties in Bali, maximizing partners’ investment returns, and increasing visitor bookings.

In this article, I’d like to go into further detail regarding our revenue-sharing process. Where profits are split fairly, so you only invest when your property generates income, guaranteeing that expenses are always met by your success.

Table of Contents

What is revenue sharing?

Revenue sharing is a business practice where the income generated from a particular source is distributed among different parties based on a predetermined agreement. The distribution of revenue is often based on a percentage or a fixed amount agreed upon by the involved parties.

In the context of a rental property business, revenue sharing occurs between property owners and management companies.
For example, a property owner may partner with a property management company to handle the day-to-day operations, marketing, and guest services. In return, the management company receives a percentage of the rental income as compensation for their services.

revenue sharing illustration
Revenue Sharing Illustration where a party takes a percentage of the revenue from a partner

Why we implement revenue sharing?

Revenue sharing is a way to align the interests of different stakeholders, ensuring that each party has a vested interest in the success and profitability of the business. The management company is motivated to maximize the property’s occupancy and rental rates to increase overall revenue, benefiting both the property owner and the management company. 

Benefits for revenue sharing include: 

  • Risk Mitigation: Partners share financial risks with the property management company. If the property underperforms, the impact is distributed among all parties involved.
  • Collaborative Approach: Revenue sharing fosters a collaborative and cooperative approach. Partners and the management company work together to achieve shared financial goals.
  • Flexibility: The flexibility of revenue-sharing arrangements allows partners to adapt the agreement based on changing market conditions or specific property needs.
  • Transparency: Revenue-sharing agreements often involve clear and transparent financial reporting, fostering trust and accountability between partners.
  • Maximized Returns: With a shared interest in the property’s success, partners are more likely to see maximum returns on their investment.
Delightful Property
$ 200 /bedroom/month
Inspired Bookings
% 15 Revenue Sharing*
Inspired Investment
% 20 Revenue Sharing*
Popular

Our Revenue Revenue sharing package, rewarding property owners and Bukit Vista’s unique contribution to success.

Revenue sharing process and mechanism

After you become our partner, you will have access to our BV GO app, where you can monitor and control your property performance anywhere and anytime. As guests have booked and secured a transaction, we will share their payment directly to your bank account after having taken our share of the revenue. 

As we value transparency, you can also see the monthly report of your property sales performance. As well as the revenue sharing report between your shares and ours. Furthermore, you can see each guest’s transaction details updated live, with the option to download your performance report in an Excel file. This way, you can see your performance details in real time to see if you have met your desired returns. 

bvgo finance report
BV GO Accounting Report
BV GO Transaction Report

Conclusion

Revenue sharing, a key aspect of our collaborative approach, aligns interests, mitigates risks, and ensures a flexible, transparent, and mutually beneficial partnership. Additionally, our BV GO app provides partners with real-time control and monitoring of property performance, allowing for transparency and immediate access to revenue-sharing details.

We believe in a shared journey towards success. That’s why we apply a revenue-sharing structure for our property management package, so profits are equitably distributed, ensuring that your property’s financial achievements always cover your expenses.  Partner with us to experience the full potential of your investment in Bali’s dynamic real estate landscape! 

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