6 Ways To Manage a Leased Property in Bali

Leasing a property in Bali can be a wise investment for foreign investment. It is helpful to anyone for generating passive income or expanding their real estate portfolio. However, owning a leased property comes with responsibilities beyond simply collecting rent. 

In this context, it’s essential to understand why regular maintenance of a leased property is crucial and how it can benefit both the owner and the tenant.

Why Should You Maintain Your Property?

While investing in a Bali property has the potential for significant long-term profits, substantial financial losses are also a potential risk to consider.

Using property management services from a local provider can be a wise decision to guarantee the proper upkeep of your investment at a high standard.

As a property owner, you may be responsible for various tasks, including handling financial audits, addressing guest inquiries and complaints around the clock, and locating dependable repair services for your property.

Being a property owner can be a 24-hour job that consumes your time. Your substantial investment may slowly lead to losses without adequate handling and management. 

Employing the services of a property management company is a prudent solution to ensure the proper maintenance of your property. The service usually comes with trained resources to give solutions for every problem you may face as a leased property owner.

Read more: The Ultimate Guide to Property Investment in Bali

Reasons to Maintain Your Leased Property

Maintaining a leased property is crucial for the property’s longevity and the satisfaction and safety of the tenants.  

Property owners ensure tenants have a safe, comfortable, and habitable living environment.

Regular maintenance and repairs ensure the property remains in good condition, reducing the likelihood of significant issues arising. 

Keeping the property well-maintained also shows your tenants that you care about their well-being and are committed to providing them with a high-quality living space. 

Additionally, regular maintenance can prevent minor problems from turning into costly repairs, saving you money in the long run. 

Maintaining a leased property is essential for both the owner and the tenants, creating a positive and productive rental experience for all parties involved.

What You Need to Know About Property Maintenance

Maintaining your leased property poses some challenges. This is because you must ensure that your investment reaches the potential market you sought. 

Therefore, here are the things you must consider about leased property maintenance. 

1. Marketing and Advertising Strategies

After preparing your rental property for occupancy, setting rental prices and expectations is a critical step before finding tenants. 

Researching the average rental price in the area and assessing the number of available properties is necessary before setting a rental fee. 

When choosing a location, it’s crucial to consider the area’s average income and family size, as well as any additional advantages or benefits that may be available, such as convenient access to public transportation or off-street parking.

Analyzing the competition in the market can assist in appropriately pricing your rental property.

2. Pricing Strategies

Ensuring a profitable rental property requires understanding your cash flow and keeping track of your finances. While hiring a property management company can provide comprehensive reports, it is essential to understand the requirements for keeping your books. 

These include monitoring rent payments to cover expenses like mortgage and property maintenance, collecting rent on time, tracking monthly mortgage payments, and accounting for costs such as advertising fees, property maintenance, insurance, taxes, and unexpected fines. 

Setting apart tenant security deposits in compliance with local laws is also essential.

Maintaining accurate paperwork is crucial, including proof of property and property owner insurance, rental applications, lease agreements, rent receipts, walkthrough checklists, and other relevant documents. 

Setting aside money for expenses and considering hiring an accountant to maximize deductions and stay updated on tax laws is also essential.

3. Guest Management

Additionally, it is essential to determine tenant requirements before advertising your property. 

It includes identifying the ideal tenant profile and considering minimum income, smoking preferences, employment history, credit score, past rental history, and the required references.

It is essential to be careful when screening potential renters for your property. 

One way to do this is to thoroughly check their social media profiles, booking account history, and other relevant information.

4. Maintenance and Repairs

Property owners must perform regular maintenance tasks in their rental properties to prevent costly damage and keep tenants safe. 

These tasks involve replacing HVAC air filters biannually, arranging for professional exterminations to prevent pest infestations, testing smoke and carbon monoxide detectors regularly, draining water heaters annually, and cleaning gutters at least twice a year.

Property owners should also inspect their rental property’s bathrooms yearly and replace the caulk if necessary to prevent water leaks and mold growth.

5. Hire a Property Manager

Property owners hire a property manager or management company to manage their properties, collect and deposit rent, handle delinquent payments and evictions, and ensure regular maintenance. 

They can also help owners create a competitive pricing strategy based on real-time data and market the property effectively. By hiring a property manager, owners can save time and money and provide better tenant experiences. 

A property manager helps with rent fee collection and budgeting and creates a competitive pricing strategy. Aside from that, property managers are also responsible for conducting regular maintenance and marketing the property to the desired target market.

InCorp Indonesia (formerly Cekindo) is a platform where property owners can obtain assistance, specifically with land & property ownership and company registration, ensuring that their property and business affairs are well managed. 

6. Have a Source for Your Legal Needs

Even if you have a good relationship with your tenant, it’s crucial to comprehend the legal rights of property owners and tenants and document everything. 

This measure is essential to safeguard both parties in the event of any complications that may arise.