The Ultimate Handbook for Managing a Rental Property in Bali

The Ultimate Handbook for Managing a Rental Property in Bali

InCorp Editorial Team

Table of Content

Bali, known for its breathtaking natural beauty, vibrant culture, and warm hospitality, has long been a popular destination for tourists worldwide. With the island’s thriving tourism industry, owning and managing rental property in Bali can be a lucrative and rewarding investment. 

A common question is: how does the property landscape in Bali look for the years to come? There is no easy or sure-shot way to answer this question. 

Fear of a global recession and political uncertainty could impact the general property market. However, Bali’s climate and thriving economy continue to drive the property market within what is known as the Island of the Gods. 

As the Government of Indonesia introduced new regulations for property law, it is reasonable to expect higher foreign investors would be interested in delving into the Balinese property market.

How to Build and Run a Rental Property in Bali 

The Ultimate Handbook for Managing a Rental Property in Bali

Indonesia has a set of regulations regulating each sector to provide legal certainty. The most important thing is to monitor our licenses and investment restrictions. What follows is an elaboration of the two:


Acquiring the Homestay License or the Pondok Wisata License is integral for investing in and developing a homestay. The license explicitly allows the operation of a villa for vacation rentals and applies to properties with between 3 to 5 rooms. 

In order to operate a building with more than five rooms, it is necessary to obtain either a Hotel License or a Melati License, which entails fulfilling several requirements.

For example, it may include the proximity of the premises to the tourism zones. 

Another relevant license is the Building License or the Izin Mendirikan Bangunan (IMB), which allows for building construction. Obtaining IMB could be beneficial in order to construct property to entice the tourist market.

However, the only party with the right to obtain this license is the owner of the building structure. 

Investment Restrictions 

Previously, Indonesia had a Negative Investment List, which listed all the business sectors fully and partially open to domestic and foreign investors. 

However, as of 2021, the Indonesian government released a Positive Investment List, which effectively replaces the previous list. The new list contains all the business sectors open to domestic and foreign investors. 

Therefore, checking that the business activities align with these regulations is essential. 

Read more: The Ultimate Guide to Property Investment in Bali

How to Deal with Multiple Rental Properties

The Ultimate Handbook for Managing a Rental Property in Bali

Juggling one rental property and liaising with different guests in itself is a challenging task. In addition, having multiple rental properties add a level of difficulty for property owners. 

There are several things to keep in mind when owning multiple rental properties, amongst others they are:

  • Ensure a safe and habitable condition
  • Perform periodical property inspections
  • Manage move-in and move-out items 
  • Record the state of the rental property before and after the rental period 

How Do You Manage a Rental Property?

In managing a rental property, there are several things to look at. The main part, however, is the management of the property itself to ensure that it is clean and hospitable for guests. 

This may be challenging for investors who own several properties or live away from their rental properties. 

Can You Manage a Rental Property by Yourself?

Having a strategy to manage a rental property is crucial. It includes setting aside a specific portion of the budget for property maintenance.

The most important indicator to keep an eye out for is the occupancy rate of the rental properties. It is challenging for investors who are not used to conducting such tasks. 

Fortunately, you can hire a good property management service that offers revenue management services, which look into a rental property’s data to ensure maximum returns through a revenue projection model. 

How to Navigating Rental Property Management Remotely

Although managing a property remotely alone is not impossible, it is highly challenging. 

Several things need in-person tending to explicitly cleaning and maintaining a rental property with ease, providing hands-on management of properties from cleaning, maintaining, and air support in emergencies.

Additionally, in-person management allows for a more personalized approach to tenant communication and problem-solving, fostering a sense of community and satisfaction among tenants. 

However, with technological advancements and communication tools, remote management has become more efficient and streamlined, enabling property managers to handle rent collection, maintenance requests, and tenant communication from a distance. 

It allows property managers to oversee multiple properties or properties in different locations without needing constant travel or on-site presence, making remote management a convenient and cost-effective option for property owners.

Why You Should Choose InCorp Indonesia

In sum, the property sector in Bali is expected to see upward growth in 2023. Therefore, those considering investing in property should consider Bali. 

Having a trustworthy and capable partner in property management and ownership can make all the difference in the success and profitability of a rental property. 

By collaborating with experts like InCorp Indonesia, property owners can have peace of mind knowing that their assets are in good hands. 

In addition, InCorp Indonesia’s expertise in land and property ownership and company registration matters can help property owners navigate the complexities of property management, ensuring a seamless and hassle-free experience. 

As a result, property ownership and management can be rewarding and profitable with the right partners.

Verified by

David Susandi

Branch Manager – Bali Office at InCorp Indonesia

Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia.

Get in touch with us

Lead Form

Frequent Asked Questions

We use cookies to improve and customise your browsing experience. You are deemed to have consented to our cookie policy as you continue browsing our site.