How to Maximize Rental Yield for Your Bali Villa

Rental yield is the return you earn from your property compared to its cost. Think of it as a way to measure how much income your investment is generating.

It’s different from ROI (Return on Investment). Rental yield focuses on rental cash flow and expenses, while ROI looks at the total profit from the property.

Have you ever wondered what a good return on your Bali property investment looks like—and more importantly, how to achieve it?

Good news! In this guide, we’ll walk you through everything you need to know about rental yield, so you can focus on the right things and reach your investment goals with confidence.

Key Takeaways

• Good rental yields in Bali range from 6–8% and can go higher (10–12% net) with the right strategy, location, and amenities.
• A good net rental yield is usually above 3–4%. Net yield is calculated by subtracting your yearly operating costs from your annual rental income.
• You can calculate your villa’s yield using an online calculator or with this formula: annual rent ÷ property value × 100.
• Maximize yields by choosing prime locations, setting smart prices, adding guest-friendly amenities, using high-quality photos, and highlighting unique villa features.

Explore Top Deals: Available Bali Villa For Sale - Leasehold and Freehold!

What is a Good Rental Yield?

In general, a gross rental yield of 5% or higher is considered strong. A “good” rental yield is often considered to be between 6% and 8%, according to NatWest.

However, keep in mind that a "good" rental yield can vary depending on the property’s location and market conditions.

How to Calculate Rental Yield?

Here’s a simple formula to calculate rental yield:

Rental Yield (%) = (Annual Rental Income ÷ Property Value) × 100

Let’s break it down (with example):

1. Annual Rental Income: Add up all the money you expect to earn from renting out your property in a year. For example, if your monthly rent is $2,000, your annual rental income would be $24,000.
2. Property Value: Use the total cost of your property, including any taxes, legal fees, or renovation expenses. If your property costs $300,000, that’s the number you’ll use.
3. The Calculation: Using the numbers above, your rental yield would be: (24,000 ÷ 300,000) × 100 = 8%

An 8% rental yield is considered excellent for most markets, but in Bali, you might even aim higher with the right strategies.

How to Work Out Net Rental Yield

Net rental yield shows the percentage of yearly rental income left after subtracting all operating costs. It gives a more accurate picture of profit compared to gross yield.

For net rental yield, returns above 3–4% are usually acceptable once expenses are taken into account.

Here’s a simple way to calculate net rental yield:

1. Add up all the yearly property costs and expenses.
2. Work out the total rent you collect from tenants in a year.
3. Subtract the yearly costs from the rental income.
4. Divide that number by the property’s value.
5. Multiply by 100 to get the net rental yield percentage.

For example:

• Monthly Rent: $2,000
• Annual Rental Income: $2,000 × 12 = $24,000
• Annual Expenses: $5,000 (let’s assume for maintenance, insurance, etc.)
• Property Value (Purchase Price): $300,000

This gives you a net rental yield of:

Net rental yield = [(Annual rental income - annual expenses) / total property value] x 100
= [($24,000 – $5,000) / $300,000] x 100
= 0.0633 x 100
= 6.3%

How to Use Rental Yield Calculator

Another simple way to work out your rental income yield is by using an online calculator. There are many free rental yield calculators available online.

Here’s how to use free rental yield calculator:

1. Search "rental yield calculator" online and open any free one
2. Gather your numbers:
   • Property price (or current value)
   • Monthly rent
   • Yearly costs (tax, insurance, repairs, management fees, etc.)
3. Type the villa price into the calculator
4. Add the monthly rent. If it asks for yearly rent, multiply by 12
5. Add expenses for net yield. If the tool has an “expenses” box, enter your yearly costs. If not, do this: net income = yearly rent − yearly costs, then net yield = net income ÷ price × 100
6. Hit "Calculate"

Key Strategies to Maximize Rental Yield in Bali

Maximizing your rental yield isn’t about luck—it’s about smart, calculated moves that make your property stand out while attracting the right guests. 

Here’s what you need to focus on:

1. Understand the Market

Bali’s property market keeps evolving, and to stay ahead you need to know what renters and guests are looking for.

According to the National Association of Realtors, demand is growing for sustainable features, home office setups, and outdoor spaces.

In Bali, it’s no different. Properties near amenities like cafes, shops, and wellness centers are a big hit.

Sustainability is also becoming a game-changer. Eco-friendly villas with solar panels or rainwater systems not only attract environmentally conscious renters but can also command higher rates.

The rise of remote work is another key driver. Guests are actively seeking properties with comfortable workspaces and reliable internet. Creating a cozy home office corner can make a big difference in attracting long-term renters.

By following these trends and tailoring your property to meet them, you’ll make your villa more attractive—and more profitable.

Read More: Invest in Bali with High ROI for Foreigner: A Step-by-Step Guide

2. Choose Your Location Wisely

Source: Real Info Report - Location in Bali

Even if your villa has everything guests want, the wrong location can hurt your bookings and income. Luckily, Bali has options for every type of renter.

• Short-Term Rentals: Best for tourists who want quick access to attractions. Focus on Canggu, Seminyak, or Uluwatu, where demand is high and rental rates are stronger.
• Long-Term Rentals: Best for expats, digital nomads, or families. Consider Sanur, Ubud, Umalas, or Tabanan (Nyanyi, Kedungu, etc.), where comfort and affordability matter most.

Once you know your target audience, choosing the right location becomes easier. Combine this with the right amenities and pricing, and you’ll be set for strong yields.

Read More: 10 Best Areas to Invest in Bali Real Estate

3. Price Strategically

Getting pricing right is one of the smartest ways to maximize your income. With a little research, you can set a price that works for both you and your guests.

One of our clients has used this tactic and said it worked every time: pretend you’re a potential tenant. Then, call similar properties near your rental area, gather their pricing, and then set your rate slightly lower.

You can also use local listing platforms like Bali Villa Realty websites or Airbnb. Look for properties with similar sizes, layouts, and features to your own.

Once your pricing is set, stay flexible. If bookings come in quickly, you might raise your rate. If demand slows, adjust it or add perks like discounts or small extras, such as free breakfast or airport pickups.

4. Invest in Amenities Guests Love

Imagine this: a guest arrives late at night, tired from their journey. They open the fridge and find a filter pitcher with fresh water, snacks, and a small note welcoming them to Bali.

Or, consider a millennial couple returning from a day of exploring. Instead of hunting for dinner options, they find instant noodles and a cozy setup to relax, complete with a Bluetooth speaker for playing their favorite music. 

Guests don’t always need luxury. They want convenience, comfort, and those thoughtful details that show you’ve anticipated their needs instead.

So, you can start with simple gestures:

• A bowl of fruit, bottled water, or a handwritten welcome note
• A guidebook with insider tips on cafés, beaches, and cultural spots
• Basics like a water filter, toiletries, tea, and coffee

When guests feel cared for, they’ll leave positive reviews, recommend your villa, and even return.

5. Leverage Unique Selling Points

Source: Bali Villa Realty - Tropical Elegance 4-Bedroom Villa in Ubud

Bali is full of beautiful villas. To stand out, highlight what makes yours different.

Ask yourself:

• Are you near a hidden beach or a lively nightlife spot?
• Does your villa showcase Balinese craftsmanship—or a sleek modern style?
• Do you offer unique features like an infinity pool, outdoor shower, or cooking classes with a local chef?

Once you’ve identified what makes your property special, show it off! Use your listing descriptions and photos to tell a story about your villa’s uniqueness. 

For example: Instead of telling “Great location,” try: “Wake up just steps from Bali’s best surf spots and unwind at nearby organic cafes.”

Make it easy for guests to picture themselves there, experiencing what only your property can offer. That’s how your villa becomes the place to stay.

6. Optimize Your Listing with High-Quality Photos 

Picture this: you’re scrolling through rental listings. Most photos are dark or blurry, so you keep scrolling.

Then one photo pops: it’s bright, inviting, and you can almost feel the sunlight. You stop, click, and imagine yourself there. That’s the power of great visuals.

Research found that photos are one of the top three things guests look at when choosing a place to stay. It's because guests don’t just look at photos. They imagine waking up in your villa, lounging by the pool, and relaxing in comfort.

In fact, a study of 100,000+ Airbnb listings found properties with professional photos got 28% more bookings, 26% higher nightly rates, and 40% more overall earnings.

So, with the right images, you’re not just selling a stay. You’re selling an experience.

Expenses That Can Lower Your Net Rental Yield

As an investment property owner, there are several costs you need to cover:

• Property maintenance and repairs
• Strata or property management fees
• Depreciation
• Council rates
• Insurance
• Water bills

Notice that loan repayments aren’t included here. That’s because net rental yield focuses only on costs tied directly to the property—not your personal financing.

In other words, your mortgage and interest payments are separate from this calculation.

And while many of these expenses may be tax-deductible, that doesn’t mean they come at no cost to you.

Conclusion: What You Need to Remember

In conclusion, a good rental yield is usually around 6–8%. But this number can change depending on your villa’s location and the market at the time. You can calculate your villa rental yield using the formula or using a free online calculator.

Earning a good rental yield in Bali isn’t about luck. It’s about smart choices and small, steady improvements. And while managing a villa can feel overwhelming, remember: you don’t have to do it alone.

At Bali Villa Realty, we’ve helped many investors boost their returns and avoid costly mistakes. We can help you calculate your villa’s ROI and rental yield, and create a personalized investment plan based on your goals.

Interested? Book a free consultation with our agent through this link at your convenience, whenever you’re ready.

FAQ

1. What is the rental yield of a villa in Bali?

As of September 2025, rental yields in Bali depend a lot on the villa’s location and type. Properties in top tourist spots usually bring in gross yields of 8% to 15%, while net yields (after expenses) often sit around 10–12%.

2. What is ROI in Bali on renting properties?

On average, rental properties in Bali give an ROI of 7–12% per year. In popular prime areas, ROI can even reach up to 20%.

3. How much is it to own a Bali villa?

• Seminyak/Canggu: $300,000 – $1,000,000 for mid-sized villas.
• Ubud: $200,000 – $600,000 for villas surrounded by nature.
• Sanur/Nusa Dua: $150,000 – $400,000, popular with retirees and long-term expats.
• Tabanan (Nyanyi, Kedungu, etc.): $100,000 – $300,000 for larger land plots in more rural settings.

4. What is the rental income tax in Bali?

Rental income is subject to a final income tax (PPh Pasal 4 Ayat 2) of 10%.