Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Bali's property market is included in our pack
Long-term rental properties in Bali offer investors net yields of 6-12% after expenses, with purchase prices ranging from $200,000 to $1,000,000 depending on location.
Prime areas like Canggu and Seminyak command higher rental rates of $3,000-$6,000 monthly but require larger initial investments, while Ubud offers more affordable entry points at $1,500-$3,000 monthly rents. Property management fees typically consume 15-25% of rental income, and annual maintenance costs average $4,000-$10,000 for a standard villa.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Bali's long-term rental market delivers realistic net yields of 6-12% for well-positioned properties in prime locations like Canggu, Seminyak, and Ubud.
Foreign investors should budget $200,000-$1,000,000 for purchase prices plus $10,000-$20,000 for furnishing, with ongoing costs including 15-25% management fees and $4,000-$10,000 annual maintenance.
| Location | Purchase Price (USD) | Monthly Rent (USD) | Net Yield | Occupancy Rate |
|---|---|---|---|---|
| Canggu/Seminyak | $300,000-$1,000,000 | $3,000-$6,000 | 10-12% | 70-80% |
| Ubud | $200,000-$600,000 | $1,500-$3,000 | 6-8% | 60-70% |
| Management Fee | - | 15-25% of rent | - | - |
| Annual Tax (PBB) | 0.2-0.5% of assessed value | - | - | - |
| Setup/Furnishing | $10,000-$20,000 | - | - | - |
| Annual Maintenance | $4,000-$10,000 | - | - | - |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
How much do long-term rental properties cost to purchase in popular Bali areas?
Long-term rental properties in Bali's most sought-after areas require substantial upfront investments that vary significantly by location.
In Canggu and Seminyak, expect to pay $300,000-$1,000,000 for mid-sized villas suitable for long-term rentals. Smaller units like apartments or older homes start around $200,000-$400,000, but these typically generate lower rental income.
Ubud offers more affordable entry points with villas ranging from $200,000-$600,000. Two- or three-bedroom villas with nature views often fall within the $150,000-$250,000 range, making them attractive for investors with smaller budgets.
Prime beachfront locations in Seminyak command the highest prices, often exceeding $800,000 for quality properties. Properties further inland or in developing neighborhoods can be acquired for significantly less but may struggle to attract premium long-term tenants.
As of September 2025, property prices in established areas have stabilized after years of rapid growth, creating more predictable investment scenarios for long-term rental strategies.
What are the current monthly rental rates for long-term tenants in these neighborhoods?
Monthly rental rates for long-term tenants vary dramatically between Bali's different neighborhoods and property types.
Canggu and Seminyak command the highest rates, with 2-3 bedroom villas typically renting for $3,000-$6,000 monthly. Smaller apartments or older properties in these areas may rent for $1,500-$3,000, depending on condition and exact location.
Ubud presents more moderate pricing, with full villas generally renting for $1,500-$3,000 monthly. Properties with exceptional views or premium locations can push toward the higher end of this range.
Proximity to beaches, popular restaurants, coworking spaces, and international schools significantly impacts achievable rental rates. Properties within walking distance of Echo Beach in Canggu or Potato Head in Seminyak consistently command premium pricing.
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What is the current occupancy rate for long-term rentals in Bali?
Long-term rental occupancy rates in Bali remain relatively stable compared to short-term vacation rentals, though they vary by location and season.
Prime tourist areas like Canggu and Seminyak report 65-80% occupancy year-round for well-managed long-term properties. The presence of digital nomads and expat communities helps maintain consistent demand throughout the year.
Ubud experiences slightly lower occupancy rates around 60-70%, but still maintains better stability than remote or less developed areas of the island.
Long-term rentals experience less dramatic seasonal fluctuations compared to Airbnb properties, with occupancy rates remaining relatively steady throughout the year. However, rates may dip marginally during traditional low tourism periods like the rainy season.
Properties offering modern amenities, reliable internet, and professional management services consistently achieve higher occupancy rates across all areas.
How much do property management companies charge in Bali?
| Service Level | Management Fee | Services Included |
|---|---|---|
| Basic Management | 15-20% of rental income | Tenant screening, rent collection, basic maintenance coordination |
| Full Service | 20-25% of rental income | Marketing, bookings, guest services, staff management, bill payments |
| Premium Management | 25-30% of rental income | Concierge services, legal compliance, renovation oversight, financial reporting |
| Staff Costs (Direct) | $300-$700/month | House manager, cleaner, gardener, pool maintenance |
| Utilities Management | $100-$300/month | Electricity, water, internet, security, waste collection |
| Marketing & Bookings | 5-10% of rental income | Online listings, professional photography, booking platforms |
| Legal Compliance | $1,000-$3,000 annually | Permit management, tax filings, contract updates |
What are the average yearly maintenance and repair costs for long-term rental properties?
Annual maintenance and repair costs for long-term rental properties in Bali typically range from $4,000-$10,000 for an average 2-3 bedroom villa.
Staff costs represent the largest ongoing expense, with house managers, cleaners, gardeners, and pool maintenance staff costing $300-$700 monthly. Properties in prime locations often require higher-quality staff to meet tenant expectations.
Pool and garden maintenance runs $100-$250 monthly, depending on property size and landscape complexity. Tropical climate conditions require regular chemical treatments, equipment repairs, and intensive gardening services.
Utility costs average $100-$300 monthly, including electricity, water, internet, and security services. Air conditioning usage and pool filtration systems drive higher electricity consumption in rental properties.
Routine preventive maintenance and repair supplies typically cost $1,000-$2,000 annually, covering items like paint touch-ups, appliance servicing, and minor structural repairs that are essential for maintaining rental standards.
What are the local taxes and legal costs for long-term rental properties?
Property taxes and legal costs in Bali are relatively modest compared to many international markets, but proper compliance is essential for successful long-term rentals.
Annual Property Tax (PBB) averages 0.2-0.5% of the government-assessed property value, typically resulting in payments of around $300 annually for medium-sized villas.
Rental income tax rates depend on your legal structure and compliance level. Properties managed through licensed companies pay 10% tax on rental income, while individual landlords without proper permits face 20% rates.
Notary and legal fees consume 1-2.5% of property value during transactions, with rental contract setup or leasehold arrangements costing IDR 10-30 million ($700-$2,000).
Permit and licensing fees range from IDR 15-40 million ($1,000-$3,000) for building permits (IMB/SLF) plus additional tourism license fees if required for your specific rental operation.
How does long-term rental demand compare with short-term Airbnb rentals?
The balance between long-term and short-term rental demand in Bali has shifted significantly in recent years, creating important considerations for investment strategies.
Short-term Airbnb rentals currently generate higher gross yields of 8-15% in prime locations, compared to 6-10% net yields for long-term rentals. However, short-term rentals require significantly higher management costs and face greater seasonal risk.
Long-term rental demand is experiencing some flattening as digital nomads tighten budgets and remote workers return to office-based employment. This trend has made short-term vacation rentals more attractive in high-demand coastal zones.
Despite shifting demand patterns, long-term rentals offer more predictable cash flow and lower operational complexity, making them suitable for investors seeking stable returns rather than maximum yield.
Market conditions in September 2025 suggest that properties capable of switching between long-term and short-term rental models provide the most flexibility for optimizing returns based on seasonal demand.
What is the realistic net yield for long-term rentals in Bali after all expenses?
Realistic net yields for long-term rental properties in Bali range from 6-12% after accounting for all expenses, with location and management quality being the primary determining factors.
Well-located properties in Canggu and Seminyak typically achieve 10-12% net yields when professionally managed and maintained to high standards. These areas benefit from consistent demand from expats and digital nomads.
Ubud properties generally deliver 6-8% net yields, reflecting lower rental rates but also reduced property acquisition costs. Properties with exceptional features or locations may achieve higher returns.
After deducting property management fees (15-25%), annual maintenance costs ($4,000-$10,000), taxes, and insurance, most investors should budget for total expenses consuming 35-45% of gross rental income.
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How much should you budget for furnishing and setting up a long-term rental?
Furnishing and setup costs for long-term rental properties in Bali typically require IDR 150-300 million ($10,000-$20,000) for a basic to mid-range 2-3 bedroom villa.
1. **Essential Furniture and Appliances** ($6,000-$12,000) - Bedroom furniture, living room sets, dining table, refrigerator, washing machine, air conditioning units2. **Kitchen Equipment and Supplies** ($1,500-$3,000) - Cookware, dishes, utensils, small appliances, water filtration system3. **Technology and Entertainment** ($1,000-$2,500) - High-speed internet installation, smart TVs, sound systems, streaming service subscriptions4. **Linens and Textiles** ($800-$1,500) - Bedding, towels, curtains, cushions, decorative fabrics5. **Security and Safety Equipment** ($700-$1,000) - Safe, security cameras, smoke detectors, first aid supplies, emergency lightingModern long-term tenants expect fully equipped properties with reliable internet, complete kitchen facilities, and contemporary furnishings that meet international standards for comfort and functionality.How do location factors impact achievable rental income in Bali?
Location factors dramatically influence rental income potential, with properties near key amenities commanding significant premiums over those in less desirable areas.
Proximity to beaches, particularly popular spots like Echo Beach in Canggu or Double Six Beach in Seminyak, can increase rental rates by 30-50% compared to inland properties just a few kilometers away.
Access to international schools, coworking spaces, and trendy restaurants creates sustained demand from expat families and digital nomads, justifying higher rents and maintaining better occupancy rates.
Infrastructure quality, including road conditions, reliable electricity, and water supply, significantly impacts tenant satisfaction and willingness to pay premium rents. Properties in areas with poor infrastructure struggle to attract quality long-term tenants.
Distance from main hubs like central Seminyak or Canggu can reduce achievable rental rates by 20-40%, even for otherwise comparable properties, highlighting the critical importance of location selection in rental property investments.
How do currency fluctuations affect returns for foreign investors?
Exchange rate fluctuations between the Indonesian Rupiah (IDR) and major foreign currencies create both opportunities and risks for international property investors in Bali.
Most villa sales and lease transactions are conducted in USD or AUD, providing some protection against currency volatility for the initial investment. However, operational income and expenses are typically handled in IDR.
Major swings in the USD/IDR exchange rate can significantly boost or diminish real returns depending on entry and exit timing. A strengthening US dollar against the Rupiah increases the value of USD-denominated rental income for Indonesian operations.
Property management companies often offer currency hedging services or multi-currency payment options to help minimize exchange rate risks for foreign investors managing rental properties.
As of September 2025, most experienced investors recommend maintaining some currency diversification and avoiding excessive exposure to single-currency rental income streams when possible.
What legal restrictions should foreign investors know about before calculating ROI?
Foreign ownership restrictions in Indonesia significantly impact investment structures and potential returns, requiring careful legal planning before property acquisition.
Direct freehold title ownership is not available to foreign individuals, who must use leasehold arrangements (Hak Sewa) or establish PT PMA foreign-owned companies for long-term property control.
Standard leasehold terms run 25-30 years with renewal options at market rates, but lease renewals are not guaranteed and depend on negotiations with Indonesian title holders.
PT PMA company structures provide more control but require minimum investment levels, ongoing compliance costs, and professional legal management that can consume 2-5% of annual returns.
It's something we develop in our Indonesia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Bali's long-term rental market offers realistic returns of 6-12% for investors who carefully select properties in prime locations and implement professional management strategies.
Success requires substantial upfront investment ($200,000-$1,000,000), proper legal structures for foreign ownership, and ongoing commitment to property maintenance and tenant satisfaction in Indonesia's evolving real estate market.
Sources
- Bali Villa Realty - Cost of Property in Bali
- Bali Exception - Real Estate Prices
- Ilot Property Bali - High Property Returns
- BambooRoutes - Bali Rental Yield
- Bali Visa - Property Prices 2025
- The Bali Homes - Real Estate Opportunities
- Azure Bali - Property Management
- Villa Bali Sale - Rental Income
- Bukit Vista - Villa Costs
- Neginski - Foreign Property Investment