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Have you ever wondered what a good return on your property investment in Bali looks like?
Maybe you’ve heard about great rental yields but aren’t quite sure how to achieve them.
Here’s the thing: a “good” rental yield is often considered to be between 6% and 8%, according to NatWest.
But Bali is no ordinary market—it has its unique charm, driven by tourism, and expats.
This means higher returns are possible if you know what to focus on.
Whether you’re already renting out your property or just getting started, this guide is your playbook for maximizing your rental income.
Let’s get started!
What Is Rental Yield and How Do You Calculate It?
Before diving into ways to maximize your rental income, let’s get clear on: What is rental yield, and why does it matter?
Rental yield is the return you get from your property compared to its cost.
Think of it as a way to measure how much money your investment is making for you.
Here’s a simple formula to calculate rental yield:
Rental Yield (%) = (Annual Rental Income ÷ Property Value) × 100
Let’s break it down:
- 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.
- 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.
- 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.
Key Strategies to Maximize Rental Yield in Bali
Now, let’s get to the heart of the matter…
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 is evolving, and staying ahead means keeping up with what renters and guests want.
According to the National Association of Realtors, the global trend for property will be around sustainable features, home office setups, and outdoor space.
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 understanding these trends and tailoring your property to meet them, you can make it far more appealing—and profitable.
#2. Choose Your Location Wisely
Source: Real Info Report
Now that you know what’s trending, it’s time to look at the next big strategy: Location.
Why?
Because even if your property ticks all the right boxes, being in the wrong spot could mean fewer bookings, lower rates, and, ultimately, a disappointing rental yield.
The good news is that Bali has something for everyone. Here’s how to choose wisely:
- Short-Term Rentals
If your target renters are tourists looking for a slice of Bali paradise, these areas are your best bet: Canggu, Seminyak, and Uluwatu.
Tourists prioritize convenience and experiences.
Properties in these areas are in high demand because they offer easy access to Bali’s attractions, making it easier to command higher rental rates.
- Long-Term Rentals
If your target renters are expats, digital nomads, or families looking for a long-term base, consider these areas: Sanur, Ubud, Umalas, or Tabanan (Nyanyi, Kedungu, etc.).
Long-term renters value comfort, affordability, and a sense of home.
Choosing locations that cater to these needs ensures your property stays occupied and yields consistent income.
Once you know your target audience, choosing the right location becomes much clearer.
And when you combine the perfect location with thoughtful amenities and smart pricing (we’ll cover that next), you’re setting yourself up to achieve great rental yields.
Related article: 10 Best Areas to Invest in Bali Real Estate.
#3. Price Strategically
Getting your rental pricing right is one of the smartest ways to maximize your income.
The good news: a little research and strategy, you can set a price that works for both you and your guests.
Start by understanding your market.
One of our clients has used this tactic and said it worked every time: pretend you’re a potential tenant…
Call similar properties near your rental area, gather their pricing, and then set your rate slightly lower.
Local platforms like Bali Villa Realty websites or Airbnb can help. 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.
The more you look, the better you understand what works. It’s all about keeping up with the market.
For more information on how to price your property the right way check out our new post here>>>.
#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…
And you can do the same to your guests.
Starting with a simple gesture—a small bowl of fruit, bottled water, or a handwritten welcome note—can set the tone for the entire stay.
Guests often feel lost after a day or two of sightseeing.
Offer a guidebook with insider tips—things like beaches, the best local cafes, or must-see cultural spots.
Sometimes, it’s the basics that win hearts. A water filter, quality toiletries, or a small selection of tea and coffee are simple yet effective.
When a property feels welcoming, guests are more likely to write positive reviews, recommend your place to others, and even come back themselves.
#5. Leverage Unique Selling Points
Tropical Elegance 4-Bedroom Villa in Ubud
Let’s face it—Bali is packed with beautiful villas and rentals.
It’s easy to feel like your property might get lost in the crowd.
But don’t worry, the answer lies in focusing on what makes your property unique.
Start by looking at your property through your guests’ eyes. What do you offer that others don’t?
- Are you steps away from a hidden beach or a bustling nightlife scene?
- Does your villa showcase traditional Balinese craftsmanship? Or maybe it has a sleek, modern aesthetic?
- Do you offer something rare, like an infinity pool overlooking the rice fields or an outdoor shower surrounded by lush greenery?
- Can your guests enjoy something they won’t find elsewhere? Maybe it’s private cooking lessons 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 “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.
By focusing on what makes your villa unique, you’re showing potential guests why your property isn’t just another place to stay—it’s the place to stay.
#6. Optimize Your Listing with High-Quality Photos
Picture this: you’re scrolling through listings for a vacation rental.
Most photos are dark, a little blurry, and don’t show the space. You keep scrolling, unimpressed—until one catches your eye.
It’s bright and you can almost feel the sunlight streaming into the room.
You pause, click, and suddenly, you’re picturing yourself there, sipping coffee by the pool or unwinding in the cozy living room.
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.
In fact, a 2016 study of over 100,000 Airbnb listings showed that properties with professional photography earned 28% more bookings, charged a 26% higher nightly rate, and increased overall earnings by 40%.
The reason is simple: When guests are searching for a place to stay, they don’t just look—they imagine.
They picture themselves waking up in your villa, enjoying the space, and relaxing in comfort.
If your listing photos can spark that emotional connection, you’re already ahead of the game.
So, the next time someone is scrolling through listings, make yours the one they stop for, click on, and book.
With the right photos, you’re not just offering a place to stay—you’re offering an experience they can’t resist.
You’re on the Path to Success
Maximizing your rental yield in Bali can feel overwhelming…
You need to choose the right location, set the right price, or offer the right amenities.
But here’s the thing: you’re already on the right track.
By following these 6 steps, you’ve got a strong foundation for success.
Remember, this isn’t about perfection; it’s about progress. Each small improvement you make brings you closer to higher rental yields, happier guests, and a thriving rental business.
And if you need a little extra help along the way, we’re here to help.
Our team at Bali Villa Realty is here to guide you every step of the way, making your rental journey smoother, more profitable, and stress-free.
If that’s something you need, click the link below and book your FREE consultation with our real estate expert.
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