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Have you ever dreamed of buying a villa in Bali, imagining steady income rolling in? But then you look around and think, “Where do I even start?”
Don’t worry—you’re not alone!
Bali’s market is booming, but getting great returns requires knowing a few insider secrets.
Here’s how to maximize your rental income and avoid costly mistakes.
Step 1: Think About Construction Costs Up Front
When I bought my first rental property, I was so focused on getting it up and running that I didn’t think much about long-term costs like renovations, repairs, and replacements.
My goal was to keep expenses low, so I bought the cheapest options for just about everything: door knobs, doors, even the beds.
I thought, “Why spend more if I’m not charging much for rent, anyway?”
Fast-forward a few months, and I got a call from one of my tenants.
The door handle was broken and wasn’t a quick fix—I had to redo the whole thing.
That’s when it hit me: By going cheap, I was setting myself up for frequent repairs and higher costs down the road.
Here’s the lesson: it pays to invest in quality from the start.
You don’t need to splurge on top-of-the-line furniture or fixtures; instead, aim for the sweet spot—something reasonably priced and built to last.
By choosing durable, mid-range options from the start, you’ll be making huge savings on your rental income.
Money you’d otherwise be spending on constant furniture repairs or replacements.
It’s a small investment now that translates into big savings over time, letting you enjoy the returns without the added worry!
Step 2: Screen Tenants Carefully
Your tenants aren’t just your source of rental income, they’re the ones who will be looking after your property day-to-day.
The last thing you want is a tenant who causes more headaches than income, right? That’s why screening your tenants carefully is a crucial step.
It’s tempting to fill the space quickly when you’re just starting.
You’re eager to get things rolling and see that your first payment hits your account.
But think about the potential issues that can pop up, like delayed or missed payments, property damage, or subletting without permission.
Source: Pinterest
There’s no one-size-fits-all approach to finding the perfect tenant, but here are some tried-and-true ways to make it easier:
- Have a Real Conversation
Talking with potential tenants, even over video calls, lets you see how they communicate and respect your property. Body language, tone, and even the questions they ask can be surprisingly telling.
- Ask for References
A quick call or email to past landlords can provide valuable insights into a tenant’s track record with rent and property care.
If you’re renting out your villa in Bali from halfway across the globe, tenant screening might feel like an extra challenge. Here’s how to keep a good handle on things:
1. Partner with a trusted property manager:
A reliable property manager in Bali can handle the screening for you.
They’ll know what to look for and can perform regular check-ins to keep things running smoothly.
2. Request regular updates:
Monthly or quarterly reports, including photos and tenant feedback, will help you stay informed and ensure your property remains in good hands.
Taking these steps means you’re protecting your income and your property.
A little extra effort now can save you from bigger headaches (and costs) later, all while giving you peace of mind that your villa and investment are well taken care of.
Step 3: Create an Unforgettable Experience for Your Guests
Who doesn’t love seeing their property filled with great reviews, with guests who rave about their stay and want to come back again?
That’s the dream of every rental owner, and the secret to making it happen often involves a few essential elements.
Here’s what we’ve found works best to create an experience that brings guests back time and again:
a. Set the right price for the right experience
A fair price for an exceptional experience is the foundation for loyalty.
That’s why pricing your villa just right is key to making guests feel like they’re getting great value.
It means balancing your location, amenities, and quality of service.
When your pricing reflects the quality and experience you offer, guests feel confident in their choice and are more likely to book with you again.
b. Keep your photos true to reality
You’ve probably seen reviews on sites like Airbnb or Google from guests who feel disappointed because “the place doesn’t look like the photos.”
That’s a guaranteed way to lose repeat bookings and damage your reputation.
Ensure your photos are up-to-date and accurately reflect your villa’s layout, amenities, and atmosphere.
When guests arrive and feel the villa is even better than the pictures, you’ve already won them.
c. Focus on Service, Not Just Furnishings
It’s tempting to think that adding fancy furniture or gadgets will impress guests, but most returning guests rave about one thing above all: the service.
In fact, properties with excellent service consistently see higher ratings and more repeat bookings.
As Forbes notes, 80% of customers are likely to return if their experience is improved with personalized service.
So, if you’re working with a property manager, ensure they’re dedicated to creating that sense of personal connection and care.
The more comfortable and cared-for your guests feel, the more likely they’ll be to leave glowing reviews and return for future stays.
Start Strong with These Essential Steps
Managing a rental property in Bali and maximizing your income can feel like a big challenge, but taking just a few simple, strategic steps can make a difference.
These three tips will give you a solid foundation to grow your rental income while avoiding common pitfalls.
And if you’d like some guidance on pricing your rental to hit that “just right” mark, we’re here to help!
At Bali Villa Realty, we offer a private and free 10-minute consultation with our real estate experts to discuss making your villa a guest favorite in Bali’s competitive market.
If that’s something you like, contact us below to book your session.
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