October 5, 2022

Tips for Running a Property Rental Business in Bali

Owning a rental property in Bali can be a lucrative and enjoyable investment. But you’ve got to know what you’re doing! Follow these tips for running a successful property rental business in Bali, Indonesia.

What is a Property Business?

Are you thinking about starting a property rental business in Bali? If so, you’ll need to know a few things about running a successful business in this popular tourist destination. Here are some tips to get you started:

1. Know the local laws and regulations. Before you start your business, be sure to research the local laws and regulations regarding rental properties. This will help you avoid any legal problems down the road. We can of course help with this!

2. Find the right location. Location is everything when it comes to running a successful property rental business. You’ll want to choose a location that is popular with tourists and has plenty of things to do nearby. It’s great to ask Real Estate Agents in the area for their insight before you sign any contracts.

3. Choose the right type of property. There are many different types of properties available for rent in Bali, from villas to apartments. Be sure to choose a type of property that will appeal to your target market.

4. Promote your business. Once you’ve got everything set up, it’s time to start promoting your business. In Bali, the key channels to do this are Estate Agents, Social Media, Airbnb and online directories. However, you will most likely need to employ local professionals to undertake the majority of these activities, as explained further below.

Managing Property in Bali – Key Laws and Regulations

As you might imagine, this is a huge topic and one we won’t be able to cover in-depth in one article. However, there are some key things you have to know to have any dealings in property as a foreigner in Bali.

1. If you will earn money within Indonesia, or from assets in Indonesia, you will need a PT PMA. Even if you live at the property and want to rent spare rooms, this counts as a business and you will need a company to undertake these activities. Find out more about setting up a property PMA here.

2. You need to ensure the land or property you lease, rent or buy has the correct permits for the job you want it to do. These may include:

– SLF (formerly IMB)
– Pondok Wisata
– Contract with the owner giving relevant permissions

3. As you will have an Investor KITAS linked to your PMA company, you are expected to manage the business at a high level only. You will need local staff to undertake many of the roles required to manage a property business. You as an Investor cannot:

– Undertake marketing activities
– Meet, greet or pick up guests
– Clean or maintain the property

Interested in Managing a Property Business in Bali?

We’d be delighted to advise you on your Bali business. We offer a 2-hour consultation service where we detail everything you need to know about running a property business in Bali and charge IDR 1,000,000 for this service. However, if you proceed to create your PT PMA with us, this consultation fee is 100% deductible from the price of our services.

Get in touch to find out more.

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