Why Lower Property Management Commissions May Be Costing You More
Hi, I’m Jason, a Business Journalist at Bukit Vista, today I’ll take you behind the scenes of a cautionary tale shared on Bali Business Review by Jing Cho Yang. This story dissects one of the biggest misconceptions in the world of Bali property investment: that lower commission equals greater profits. You might think you’re saving money with a 10% fee instead of a 20%, but as you’ll see, the numbers often tell a different story.
The Story of Mrs. D: A Price-Driven Decision Gone Wrong
In this riveting episode, Jing shares the real experience of “Mrs. D”, a Bali property investor who initially chose a property manager offering a tempting 10% commission. Her reasoning was simple—less commission means more of the rental income goes to her pocket. But that choice turned out to be a costly misstep.
Rather than generating more earnings, her cheaper manager failed to deliver results. Bookings plummeted. Communication broke down. Eventually, Mrs. D resorted to moving the contract elsewhere. Unfortunately, by this point, she had already lost significant income during Bali’s prime tourist seasons.
Why Property Management Commissions Percentage Alone Doesn’t Tell the Whole Story
Many investors, especially those new to Bali’s vacation rental market, fall into the same trap: comparing commission percentages without examining total contract value.
- A 10% manager who produces $30,000 in bookings earns you $27,000.
- A 20% manager who secures $60,000 in bookings earns you $48,000.
Which outcome would you rather have?
The answer is obvious. But you only get there if you shift focus from percentages to performance.
Smart Investors Prioritize Revenue, Not Low Fees on Property Management Commissions
To become a successful property investor in Bali, you need to ask smarter questions. Instead of narrowing discussions around a single percentage point, ask:
- What is the projected total income for my property over the year?
- What performance history can you show me on similar listings?
- Do you offer any guarantees, lock-ins, or performance clauses?
Premium Property Management charge higher commissions for a reason—they’re the elite 1-3% that consistently attract bookings, optimize guest experiences, and protect your asset. That level of service often carries a 20% commission or more, but it also delivers exponentially higher returns.
Focus on Contract Value, Longevity, and Guarantees
Most Bali villa owners aren’t looking to run a side hustle—they want passive income, peace of mind, and a reliable manager who gets results. That’s why smart investors prefer:
- Long-term contracts that ensure stability for both parties
- Money-back guarantees or flexible performance clauses for accountability
- Full transparency on what’s being done to maximize occupancy and rates
Cheap often comes with hidden risks: unresponsive support, subpar guest experiences, and managers who walk away when things get tough. High-performing operators, on the other hand, bring professionalism, predictability, and peace of mind.
Final Thoughts: Stop Chasing Cheap, Start Demanding Results
The key message from Jing’s latest Bali Business Review episode couldn’t be clearer: you don’t get rich by cutting corners. You get profitable by finding the right partner who can maximize your property’s value, not minimize their commission cut.
If you’re ready to become an ROI-driven investor, don’t miss the full episode—it breaks down the math and gives you the tools to ask the right questions moving forward.
Watch the full video here and learn how to protect your Bali real estate investment the smart way.
Jason, Business Journalist at Bukit Vista
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