Category: Land Property Ownership

Bali offers an unforgettable travel experience and a lucrative investment opportunity. If you’re looking for a streamlined selection process of the best places to stay in Bali, make sure you read this thoroughly. 

This guide ensures a comfortable and productive base for exploring the island’s many facets. Furthermore, establishing a presence in Bali through strategic property investment can unlock additional advantages. 

Let this guide be your gateway to unlocking Bali’s full potential—both as a travel destination and an investment opportunity.

Why Should You Stay in Bali?

Bali provides a distinctive and captivating lifestyle that draws individuals globally, and people are actively looking for the best places to stay in Bali.

Its stunning beaches, verdant scenery, and lively cultural environment make it one of the best reasons to live in Bali, especially for those desiring a more relaxed pace of life.

Apart from harboring the best places to stay, Bali has a warm climate and hospitable culture among the residents, adding uniqueness and authenticity to its overall allure.

Moreover, the cost of living is relatively low compared to many Western nations, enabling expatriates to enjoy a high standard of living without excessive expenses.

Which Area in Bali is the Best to Stay in?

Bali offers unforgettable experiences in many areas, making it one of the best places to stay. These seven areas each provide unique yet equally compelling experiences worth exploring.

Seminyak

For those seeking affordable luxury accommodations, unique bars and restaurants, or excellent shopping, Seminyak is one of the best places to stay in Bali. However, it can be crowded, and prices are higher than in other areas, so budgeting accordingly is important.

Kuta

Kuta is renowned for its stunning beaches, perfect for surfing and sunbathing, and its vibrant nightlife with numerous bars and beach clubs. If you have an active lifestyle, Kuta is definitely one of the best places to stay in Bali.

While Kuta is great for family vacations, it can get crowded and is still under heavy development, leading to construction sites.

Canggu

Canggu has gained popularity due to its beach proximity and relaxed atmosphere, attracting digital nomads and hipster travelers. Note that Canggu does not allow online taxis or bikes, so renting a car is advisable for exploring.

Sanur

Sanur is ideal for a relaxing stay with beautiful beaches like Sanur Beach, which are perfect for swimming, water sports, or simply taking a dip. While it’s great for a 4-5 night vacation, activities are limited to beach resorts, so visiting other areas is recommended for a broader experience.

Ubud

Ubud is a serene destination known for relaxation and Balinese culture, with opportunities to visit the Ubud Monkey Forest and take classes in jewelry-making or cooking. Looking for serenity, Ubud is one of the best places to stay in Bali.

North Bali

North Bali offers natural beauty, with black sand beaches, waterfalls, and tropical gardens. It provides a serene experience with fewer tourists.

Uluwatu

Uluwatu is a fantastic area with high cliffs offering stunning Indian Ocean views and small beaches. However, it is secluded and an hour’s drive from Seminyak, which may be inconvenient for nightlife and higher prices, so plan your budget accordingly.

Where Should I Stay When I First Go to Bali?

For those visiting this beautiful island for the first time, exploring some of the best places to stay in Bali is essential. Each place offers unique experiences that capture the essence of Bali’s diverse and vibrant culture.

Ubud

Looking for one of the best places to stay in Bali, Ubud is ideal if you want to experience traditional Balinese culture. You’ll find beautiful hotels and a variety of hostels in the town and nearby villages. The best areas to stay include:

• Ubud Center: Central and convenient
• Penestanan: Offers an authentic village experience
• Tegalalang: Home to Bali’s most stunning rice terraces

Canggu

Canggu is a surf town turned digital nomad hotspot, ideal for meeting other travelers, surfing, and enjoying beautiful sunsets from trendy beach bars. The top areas to stay are:

• Batu Bolong: The most central
• Berawa: Close to the center, full of restaurants, but busy with traffic
• Pererenan: Slightly outside the main town, near peaceful rice terraces

Seminyak

Seminyak offers a lively, city-like atmosphere, beachfront access, and proximity to many sightseeing spots. The best places to stay include:

• Oberoi: Centrally located
• Petitenget: Quieter and more relaxed
• Double Six: Most affordable

Uluwatu and Bukit Peninsula

Uluwatu and the Bukit Peninsula feature stunning coastal scenery with beautiful beaches, dramatic cliffs, and ocean views. Recommended areas include:

• Pecatu: Everything within a 20-minute scooter ride
• Padang-Padang Beach: Best for surfing
• Ungasan: Quieter with excellent beach clubs

Amed

This lesser-known area is excellent for exploring Bali’s authentic, traditional side. Amed’s 10km coastline is lined with fishing villages, black and white sand beaches, top diving spots, and a laid-back vibe. The top areas to stay are:

• Jemeluk: Best for snorkeling and diving
• Amed Beach: Most central
• Bali Aga village: Most traditional
• Bunutan: Beautiful natural scenery

Sidemen

Sidemen is a serene area with stunning rice terraces and views of Mount Agung. Recommended areas include:

• Sidemen village: The main village with traditional weaving shops and a local market
• Selat: Known for beautiful bamboo villas

Nusa Dua

Nusa Dua is a luxurious tropical paradise with white sand beaches, golf courses, and 5-star hotels. The best areas to stay are:

• Mengiat Beach: Best for swimming and snorkeling
• Nusa Dua Beach: Most central
• Tanjung Benoa: Best for watersports

USD 800,000

Homie Elegance: 6-Bedroom Leasehold Villa in Berawa

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berawa

USD 12,400

Monthly Rental: Luxe 3-Bedroom Retreat in Seseh with Scenic Rice Field Vista

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seseh

USD 230,000

Sunset View: 1 Bedroom Apartment for Leasehold in Cemagi

DA129

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Why You Should Consider Investing in Bali Property

The demand for property in Bali has been steadily increasing. People are actively seeking the best places to stay in Bali. Therefore, it is inevitable that the island is presenting many alternatives nowadays, ranging from luxurious villas to more budget-friendly options.

Moreover, with its breathtaking landscapes, rich cultural heritage, and welcoming locals, it’s one of the best places to stay in Bali and one of the world’s most sought-after destinations. Whether you plan to rent out your property or enjoy the paradise yourself, investing in Bali real estate is a wise decision.

Given impressive rental yields in recent years, the trend of buying property in Bali has experienced substantial growth.

Begin Your Real Estate Journey in Bali with InCorp

InCorp Indonesia offers premier property investment services, which various clients have trusted for their real estate needs in Bali.

We offer comprehensive services, including Bali property and land & property ownership assistance. Our extensive listings cover many options, from luxury villas to land for sale, catering to all investment preferences.

So, forget the hassle of navigating the market alone and welcome the best support for your property investment. Begin your Bali real estate journey with InCorp by completing the form below.

Engaged in the captivating landscapes of Bali’s tropical paradise, the properties on this island encapsulate the irresistible charm that Bali is renowned for. From breathtaking beachfront villas to serene mountain retreats, this article will embark on a transformative journey where luxury and tranquility converge within Bali properties.

Investment rise in Bali properties

The Bali real estate industry is dynamic with changing patterns. Extended stays are increasingly preferred, leading to a surge in demand for luxurious villas. Therefore, the industry of Bali properties is experiencing upscaling in the investment sector.

Rising tourism has created strong demand for accommodation. Therefore, it drives property prices upwards. Especially with a limited supply in prime locations has contributed to appreciating property values, making Bali an attractive market for investors seeking profitable returns.

Leasehold and freehold property types

The following section outlines the differences between leasehold and freehold property types.

Leasehold properties in Bali

Leasehold property entails that the property and any improvements revert to the owner at the specified period’s end. As the lease term decreases, the investment value diminishes, making it less appealing to potential buyers. 

The original agreement typically outlines conditions for extending the lease, which may require mutual agreement between the landowner and leaseholder. Despite its drawbacks, leasehold property has advantages, especially in challenging areas like Seminyak, where acquiring freehold property is complex.

Read more: 6 Ways To Manage a Leased Property in Bali

Freehold properties in Bali

Acquiring freehold property in Bali offers significant land value appreciation opportunities. Freehold ownership, also known as the Right to Own, provides Indonesia’s most secure and complete form of land title ownership. Still, it’s exclusively available to Indonesian citizens, prohibiting limited liability companies (PT/Perusahaan Terbatas) and foreign individuals from obtaining land under this title. 

The title has no time limit and allows various uses except for exploiting natural resources. Foreigners have an alternative option to acquire land through the Right of Use entitlement.

Top picks for Bali properties for sale

We’ve carefully analyzed the current trends and market conditions to bring you our top picks for both leasehold and freehold properties in Bali as follows:

Top picks for leasehold properties

1. Tropical Garden Villa in Canggu 

This villa is completed with a captivating feature – a pristine white-tiled swimming pool. The property offers the ultimate haven for relaxation with its sunken living room and generous spacing. 

Each bedroom is picturesque, with a view of the pool and the garden. The tropical villa offers an incredible experience in its blend of comfort and tropical charm. The property goes for USD 165,000 or IDR 2,486,715,000.

2. 27-Year Leasehold Property in Padonan

This property is fully furnished and is designed for immediate occupancy. There is no longer a need to acquire furniture, decor and hassle yourself with any of that sort. The property is located in Padonan, a beautiful region awaiting exploration. 

The appeal to Padonan lies in the unspoiled beaches, serene atmosphere, and vibrant cultural heritage, drawing in travelers worldwide. The property goes for USD 239,000 or IDR 3,601,969,000.

3. Stunning Two-Bedroom Villa in Pecatu

Presenting an outstanding leasehold opportunity, this remarkable two-bedroom villa in Pecatu showcases distinctive Casa-style architecture and a lavish design that sets it apart. 

With its leasehold of 25 years and complete furnishings, this villa offers an enticing investment prospect for those seeking to embrace the Bali lifestyle with unparalleled style and comfort. 

Immerse yourself in the epitome of modern amenities and sophisticated design, allowing you to savor the best of both worlds. This property goes for USD 377,000 or IDR 5,681,767,000.

Top picks for freehold properties 

1. Modern Villa by Garuda Wisnu Kencana 

This villa immerses you in nature’s embrace and showcases traditional Balinese architecture. With a contemporary touch, the villa boasts spacious rooms illuminated by ample natural light pouring in through expansive windows.

Two comfortable bedrooms and two luxurious bathrooms complete the interior. The main bedroom indulges you with a king-size bed, a generous wardrobe, and a private balcony, while the second bedroom features a queen-size bed and balcony access. This property goes for USD 325,000 or IDR 4,898,075,000.

2. Stunning 6-Bedroom Villa in Umalas 

This opulent villa in Umalas presents a luxurious freehold property for sale, featuring six bedrooms with ensuite bathrooms. The villa has four masters and two guest bedrooms, offering ample accommodation. 

The villa ensures convenience and functionality with both a dry and wet kitchen. Safety is prioritized with a hidden security room equipped with a security camera link-up and alarm system.

Situated in the highly desirable area of Umalas, known for its serene atmosphere and picturesque rice paddy views, this villa offers tranquility and a luxurious escape. This property goes for USD 770.000 or IDR 11,604,670,000. 

3. Spacious 13-Room Villa in Umalas 

With an extensive land size of 19 acres and an impressive 13 rooms, this opportunity provides abundant space for a lucrative venture. What adds to its allure is that the property is offered below market value, making it an enticing investment opportunity.

Umalas serves as an ideal location for attracting visitors. By seizing this property investment, entrepreneurs can tap into the thriving market and generate a consistent income stream. This property goes for USD 1,350,000 or IDR 20,345,850,000.

Read more: Building Property in Bali as a Foreigner in 2023: What You Need to Know

Conclusion

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In conclusion, Bali offers diverse investment opportunities in its vibrant property market. Whether it’s freehold or leasehold, there are options to suit different investor preferences. The island’s popularity as a tourist destination and its untouched beauty and rich cultural heritage make it an attractive choice for property investments. 

Several other Bali properties are available for viewing through consultations with InCorp Indonesia (formerly Cekindo). Furthermore, InCorp Indonesia (formerly Cekindo) also assists land and property owners of those properties, thereby ensuring an end-to-end service.

Managing a property in Bali from afar can be challenging. Therefore, opting for a property management company in Indonesia can handle tasks like finding tenants and addressing maintenance issues more easily. 

With so many options in Bali, choosing the right company takes time and effort. Check out our essential tips for selecting the best services.

What Is Property Management?

Property management is a distinct area in the real estate sector focused on the daily supervision and administration of residential, commercial, and industrial properties, often involving third-party contractors. This field is responsible for regulating the operation, control, and maintenance of real estate properties.

Typically, property management system hire professional managers to work on behalf of property owners, managing investments such as apartments, private homes, shopping malls, and industrial parks. A property manager handles the daily responsibilities of managing these real estate investments.

The size and complexity of your property will determine whether you need to hire an individual or a team of professionals from a property management company to assist you.

Who Are The Property Managers?

Property managers will act as a local presence for out-of-town owners. Their role is to ensure that the properties they manage are well-maintained, tenants are happy, and the property owner’s investment is protected. 

They are also experts in local laws and regulations, which helps to avoid potential legal issues.

Property Management Duties and Responsibilities

As property management works on behalf of property owners, their main roles are to manage all daily tasks to preserve the property’s value by generating sales and income from leases.

These are the key responsibilities of specialized property manager:

1. Tenant Management

Property managers are responsible for managing all tenants end-to-end interactions throughout the property lease process. This includes tenant screening, lease management, supervising move-ins and move-outs, and lease terms enforcement. Additionally, property managers must maintain tenant satisfaction by providing high-quality complaint handling.

2. Property Maintenance and Repairs

To keep the property safe and comfortable for tenants, property managers must handle daily maintenance tasks and necessary repairs. This includes conducting daily inspections and system checks, ensuring landscaping, and maintaining cleanliness.

3. Rent Advertisement and Collection

Property managers are responsible for making their managed properties stand out in the market and attracting tenants by advertising vacancies through online listings or social media. They are also responsible for collecting rent and adjusting rent fees in accordance with various rent policies.

4. Verifying Legal and Financial Compliance

Property managers must ensure that the properties they manage comply with all legal requirements, including local or state landlord-tenant regulations. In terms of financial compliance, property managers coordinate with accountants for tax reporting.

Types of Property Management

Property management system vary depending on the types of properties managed, leading some property management companies to specialize in specific types. These are four types of property management system in Indonesia you need to know:

• Residential : Houses, apartments, condominiums, vacation rentals, and manufactured homes.
• Commercial : Hotels, retail spaces (malls, restaurants, and gas stations), offices, and co-working spaces.
• Industrial : Manufacturing facilities, warehouses, and distribution facilities.
• Special-Purpose Property: Theaters, hospitals, sports hubs, educational institutions, place of worships, and resorts.

Who Needs A Property Manager?

Managing real estate properties requires time, expertise, and comprehensive attention, from maintaining the property and collecting rents to understanding complex legal compliance. Landlords who lack the time or expertise in this field often use property management services to manage its facilities and handle tenant relations. Additionally, some landlords simply want to profit from their properties, necessitating professional property managers for tasks such as rent advertisement and tenant acquisition.

Is A Property Manager Worth It?

If landlords do not want to deal with the daily task of property and tenant management, hiring a manager could be a wise consideration. However, hiring specialized property management can be costly and needs thorough research to find the best firm. Despite the initial cost and efforts, finding the right property management can bring long-term benefits, such as:

• Increased tenant satisfaction
• Avoidance of costly lawsuits or liabilities
• Higher tenant retention rate
• Competitive rental rates and property value
• Consistent rental income
• Lower maintenance and repair costs
• Reduce stress and time investment for landlords

Why Opting for The Right Property Management in Bali is Important

Owning real estate in Bali can be profitable due to its popularity with tourists. However, foreign property ownership might hassle you, especially from the legal and administrative requirements and potential risks. 

A good property management company can help reduce those risks and ensure profitability. Keeping up with market changes can also improve your investing approach.

Cost-Efficient 

A property manager will help you save money by selecting the best renters, handling all property owner-tenant interactions, and finding eligible replacement tenants as soon as possible. This is important to reduce revenue loss caused by vacancies. 

A property manager needs to have experience in finding and screening potential tenants, ensuring that the tenants are reliable and will take care of the property. 

Regulatory and Compliance Awareness

Property managers should know the law, especially about renting property. It ensures property owners follow local, state, and federal regulations on tenant selection and eviction discrimination. 

Bali properties must be subject to Indonesian national and regional laws constantly changing. Aside from acquiring assistance from rental property management, landlords can also contact InCorp Indonesia (formerly Cekindo) for land and property ownership services to ensure comprehensive regulatory compliance. 

Time-Saving

Hiring a property manager could free up time to find additional investment properties to purchase. In addition, a property manager can handle all the day-to-day tasks of managing rental properties, such as maintenance, rent collection, and tenant communication. 

By outsourcing these responsibilities, owners can focus on finding new ways to expand their portfolios by acquiring more properties in Bali to profit from. 

Expertise in Property Management 

A property manager knows which vendors to call for different types of repairs or services. It can save property owners time and effort while ensuring their properties are well-maintained. 

Property managers must oversee all maintenance projects to ensure the work is on time and within budget. In addition, considering the language barrier, it is essential for foreign investors who may need help finding vendors and maintaining a relationship with them. 

Tips on Choosing The Best Property Management in Bali

Managing a property in Bali can be challenging, but a trusted property management company can make it easier. However, selecting the right one from many options can take time and effort. Here are a few tips for choosing the best Bali property management.

1. Prioritize Experience

When choosing a property management company in Bali, it is important to consider their experience in managing properties in the local market. An experienced company can provide valuable insights and help you overcome any challenges.

2. Check References

Requesting references from other property owners who have worked with the management company can give you a better understanding of their reputation and level of satisfaction with their services. 

3. Evaluate Their Services

Different property management companies offer various services, so choosing a company that can meet your specific needs, such as tenant screening, rent collection, maintenance, and marketing, is essential. 

4. Compare Fees

Property management fees vary significantly between companies, so comparing prices is essential. While selecting the most affordable option may seem prudent, you must also consider the level of service quality provided. 

5. Ask About Tenant Screening

It is vital to have dependable tenants who pay rent punctually to guarantee the occupancy of your property. Therefore, it is important to ask the property management company about their tenant screening process and how they ensure tenant reliability. 

6. Look for Transparency

Choose a property management company that provides clear and transparent accounting and reporting. It will allow you to monitor the financial performance of your property and ensure that everything is appropriately managed. 

Conclusion

In conclusion, choosing the right property management company in Bali is crucial for property owners to ensure the efficient and effective oversight of their property investments in Indonesia. 

Consider factors such as experience, references, services offered, communication, fees, tenant screening process, and transparency to make an informed decision. 

With the right property management company, property owners can enjoy peace of mind knowing their investments are in good hands.

Choosing the right property agent is important to purchase or sell a property in Bali.

A professional and reliable agent can help you navigate the complex real estate market, negotiate the best deal, and meet all legal requirements. However, with so many agents to choose from, it can take time to figure out where to begin. 

Therefore, this article will explore some essential factors when selecting the right agent property in Bali.

Bali’s Tourism Sector is Recovering in 2023

The Bali Province exceeded its international tourist arrivals target in 2022, prompting the government to raise it to 4.5 million in 2023 from 2.3 million in 2022. To achieve this target, the government plans to organize cultural and sports events and meetings, incentives, conferences, and exhibitions (MICE). 

The Bali Tourism Office has issued a Calendar of Events 2023, featuring 66 events, to show its readiness to welcome tourists. The events include 51 cultural events, 13 particular interest or sports events, and 2 MICE events. MICE and cultural events contributed the most to Bali’s tourism in 2022. 

The government has also been open to welcoming tourists from China, resulting in China becoming the second largest contributor to international tourist arrivals in Bali. 

The government is optimistic that the arrival of more Chinese tourists will help achieve their target of 6.3 million international tourists or at least 4.5 million international tourists by 2023. 

With these efforts, the Bali government hopes to return the province’s tourism to pre-pandemic levels.

The Prospect of Investing in the Bali Property Market in 2023

The pandemic’s effects on Bali’s real estate market persisted in 2020, as seen by a fall in sales and prices. However, many investors are starting to reenter Bali’s real estate market as things recover. 

The interest is mostly due to the comparatively low costs and Bali’s reputation as a secure and reliable place to invest in real estate for many purchasers, particularly those from Asia.

The market for real estate in Bali kept improving in 2021, with a notable rise in real estate transactions and steady real estate values. In addition, the island’s tourism sector also revived with the increased number of tourists. 

Bali’s Appeal For Property Investment

The appeal of Bali as a tourist destination, the island’s comparatively reasonable pricing compared to other well-liked tourist locations, and the rising number of international investors interested in purchasing property on the island are all factors driving the island’s real estate market forward.

The Bali real estate market has grown significantly since 2022 due to the potential the industry has attracted many investors. However, there are also worries about overdevelopment and a need for more infrastructure to accommodate the expanding tourism industry. 

The global economic environment has an impact on the Bali real estate market as well, and the epidemic is predicted to have a short-term effect as well. 

Nevertheless, the appeal of Bali as a tourist destination and the rising number of international investors interested in purchasing property on the island is driving the long-term prospects for the Bali real estate market in a good direction.

Read more: The Ultimate Guide to Property Investment in Bali

The Role of Property Agent and Why Should You Hire One

Securing a property requires a ton of effort and research. There are plenty of factors to consider, and even after determining those factors, it is nearly impossible to look into all available properties and negotiate for each. 

This is the point where a real estate agent becomes involved. A property agent is specifically skilled in dealing with properties and connecting potential buyers with sellers, making it easier for all parties. A property agent is generally in charge of the following: 

• Assisting customers in setting the right asking price for their property based on local sales data and market trends;
• Market the property to potential buyers through online listings, open houses, and advertising;
• Showing prospective purchasers the property and responding to their inquiries;
• Negotiating with purchasers on the seller’s behalf to obtain the most outstanding price and conditions;
• Helping with paperwork and legal needs such as disclosures, contracts, and closing processes; 
• Extending advice through the purchasing or selling process;
• having understanding and familiarity with regional real estate trends; 
• Access to a network of experts, including contractors, inspectors, and appraisers;
• Advocating for and representing the client’s best interests throughout the transaction.

How to Choose the Right Property Agent in Bali

Several factors must be considered when choosing the best property agent in Bali. For a start, the agent must possess a valid license, a commendable past performance, and receive favorable feedback from their previous customers.

Ideally, the agent should know about local regulations and general customs and practices. Aside from that, it is essential to have an agent that fully comprehends your needs, budget, and preferences and can cater to them accordingly. 

The agent should be well-connected with its contacts and resources and have ample access to properties. Investors may want to search for agents that offer comprehensive services that cover negotiation, after-sales support, and property evaluation. 

Lastly, opt for reliable and transparent agents in conducting their dealings.

Given the proper assistance, obtaining a property in Bali is a good investment. 

Apart from engaging a property agent, investors may also consider utilizing the services of InCorp Indonesia (formerly known as Cekindo) to assist with researching land and property ownership.

It helps ensure that the property is well-maintained and properly managed, providing ease and convenience for the investor and ultimately helping to maximize the return on investment.

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. 

Is Bali A Good Place to Invest in Real Estate?

Bali presents a compelling opportunity for real estate investment due to its thriving tourism industry and unique cultural appeal. As one of the world’s top travel destinations, Bali attracts millions of local and foreign tourists, ensuring a steady demand for real estate properties. The island’s diverse natural landscapes, vibrant community, and growing infrastructure enhance its appeal for both short-term and long-term stays, drawing increasing interest from foreign investors seeking stable and lucrative opportunities to invest in property businesses.

Moreover, Bali offers a relatively cheap property rental compared to other prime real estate locations, allowing foreigners to purchase luxury villas or beachfront properties at competitive prices. Recognizing these opportunities, the Indonesian government has been increasingly supportive of foreign investment, implementing policies that simplify property ownership for non-nationals.

Can a Foreigner Rent a House in Bali?

As a foreigner, you can rent a house in Indonesia. However, there are certain considerations and legal aspects to be aware of to ensure a smooth renting experience:

1. Visa and Permit Status

Your visa type will influence your ability to enter a rental agreement. Some visas, like tourist visas, are intended for short-term stays and might not allow you to sign long-term leases. Suppose you plan to stay in Indonesia for an extended period. In that case, it’s advisable to obtain a proper visa, such as a work permit or a residence visa, which often permits long-term housing arrangements.

2. Lease Agreement

Renting a house in Indonesia involves signing a lease agreement with the property owner or landlord. This agreement outlines key terms and conditions, including the rental price, lease duration, security deposit amount, and any specific rules or regulations related to the property.

3. Lease Duration

Rental agreements in Indonesia typically have a minimum duration of one year. In tourist areas or locations with high expatriate populations, landlords might offer more flexible lease terms to accommodate shorter stays.

4. Documentation

To establish your rental eligibility, you’ll likely need to provide several documents, including your passport, visa, or permit details, and potentially a copy of your employment contract if applicable. Landlords may also request personal references or other forms of identification.

5. Security Deposit

Landlords commonly require a security deposit from tenants. This deposit, usually equivalent to one or two months’ rent, acts as insurance against significant damages or unpaid rent. The terms governing the deposit refund should be clearly stated in the lease agreement.

6. Rent Payment

Rent is typically paid every month. The lease agreement should specify the due date, preferred payment method, and any consequences for late payments.

7. Maintenance and Repairs

The lease agreement should outline the responsibilities of both parties when it comes to property maintenance and repairs. Generally, landlords are responsible for major repairs, while tenants are expected to maintain the property’s condition during their stay.

8. Lease Renewal and Termination

If you wish to extend your lease beyond the initial term, communicate your intentions to the landlord well in advance. Similarly, if you want to terminate the lease early, be aware of any penalties or notice periods outlined in the agreement.

9. Legal Support

Given the potential complexity of Indonesian property laws and regulations, seeking legal guidance or consulting with property experts experienced in local real estate matters can provide valuable insights and assistance.

Foreign Direct Investment in 2015 grew by 19.2% compared to the preceding year, with investment realization of IDR 365.9 trillion. 18.9% to IDR 66.7 trillion in the second quarter of 2013. Domestic investment also increased by 15.0% of IDR 179.5 trillion (Source: BKPM. 2015. Press Release: Investment Realization 2015 Exceeded Target).

Indonesia offers you many opportunities for beneficial investment in land and property. However, there are characteristics that can frustrate investors and harm the investment climate, such as complicated bureaucracy. But don’t worry InCorp Indonesia can assist you to own the property and also help you to make the most suitable investment plan in Indonesia. 

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.

What Is the Average Rent in Bali?

Property rental fees in Bali vary depending on the location and length of stay. Popular tourist spots like Seminyak, Ubud, Sanur, and Canggu offer relatively higher villa rental prices compared to other areas. Long-term rentals in Bali often range from USD 300 to USD 1,000 per month, depending on the size and amenities. Luxury villas and apartment typically cost between USD 3,000 and USD 10,000 or more per month, especially in prime locations.

How to Invest in 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:

Licenses

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 and 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. 

How to Look for Rental Properties?

Finding rental properties in Bali can be seamless through various methods, depending on your preferences for a short or long-term stay:

• Online Property Portals: Access numerous rental properties with various facilities through popular websites or social media. Use keywords like “Bali long term rentals” or “Bali expats housing” to find your preferred properties.
• Real Estate Agents: Contact professional local or international real estate agencies that specialize in Bali properties or have a presence in Bali to discover property for vacation rental or long-term stay.
• Advertisements: Utilize online or newspaper advertisements to find various listings of private rental properties in Bali
• Networking: Discover current property listings by talking to locals, expats, or other travelers who can recommend the best deals.

How to Deal with Multiple Rental Properties

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. As the property in Bali market continues to surge, Bali also offers a multitude of professional property management services to maintain rentals and ensure smooth operations.

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 property 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.