How Much Does it Cost to Manage a Villa in Bali and its Potential Return?

img Adiel Bukitvista | June 18, 2024

Hi, it’s Adiel here, and after discussing with property managers here in Bali and our finance team in Bukit Vista, I am able to share the estimated monthly expense it takes to manage a villa here in Bali, as well as an estimation of the potential revenue generated & monthly ROI.

How do we know this information, you might ask? Well, we collect a lot of data, in fact. Our data scientists team collects and analyzes hundreds of datasets from our 100+ active property owners. They calculate their revenue performance, costs, and use a machine learning algorithm to project their future revenue with a minimum 90% credibility score, managing and generating around 300,000 dollars worth of revenue monthly for our partners.

monthly expense
One of our revenue projections calculated for our property partner

Please note that this is an estimation of a 3-bedroom property in Uluwatu; outcomes may vary for each property, but it is generally around the same ballpark as a standard villa here in Bali. So without further ado here are some details on how much it takes to run a Villa in Bali.   

Estimated monthly expense of operating a villa in Bali

One of the main expenses you need to ensure your property is taken care of is having an on-site housekeeper to ensure your property remains clean, well-organized, and sanitary to ensure your guests feel at ease. Other than cleaning up, usually housekeepers are also the ones monitoring and guarding the property when there is no guests or owner. So having them is crucial if you want your property well maintained. Salary for housekeepers usually ranges from 2 – 3 million Rupiah.

Other than having a housekeeper, maintenance outside your property is also essential if you have a pool or garden. This generally costs around Rp. 100,000 – 200,000 if you want service experts to do it for you.

 

monthly expense
Bukit Vista services for inspection and housekeeping training

Depending on the amenities and facilities your property provides, it is also essential that your amenities are in stock and in good condition. Bed covers, dish soap, toilet paper, shampoo & shower gel, water bottles, trash bags, floor cleaner, coffee & tea sachets can add up to your overall cost to 2 – 3 million Rupiah. Usually for monthly guests, the property will pay a maximum of Rp1.500.000 and the guest can pay the rest.

Besides that, a large amount of cost also goes to the energy your property uses. Electricity and water bills usually cost 2 – 3 million Rupiah depending on your usage. And usually for monthly guests, the property will pay a maximum of Rp1.500.000 and the guest can pay the rest. Gas tubes also cost Rp. 200,000 – 300,000 if your property provides a space for cooking.

Below is a detailed table entailing the monthly expense for a 3 bedroom property in Uluwatu.

As you can see from the table above, managing a monthly villa can cost you a bit. But with the right marketing strategy for your rental property and strategic price analysis to determine the pricing of your rate, you can achieve high revenue and a solid return on investment.

Revenue generated assumption

From the table below, you can see the revenue generated assumption for a 3-bedroom property in Uluwatu. Taking into account low and medium occupancy per month of your rental property, you are still able to generate a positive net profit with sizable returns too.

Bukit Vista Revenue-sharing model

 In Bukit Vista, we use a revenue-sharing model, so property owners have zero fixed management fees.

Let’s say a guest books a room worth Rp.1,000,000 worth or reservation value. The property manager would then receive 20% of the reservation value or Rp. 200,000 for the service they provide, and the rest (Rp.800,000) would then be received by the property owner.

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BV GO - finance report by Bukit Vista

As you can see, this model incentivizes a mutual and collaborative partnership between the property owner and property manager as we are incentivized to gain higher revenue. Furthermore, Bukit Vista app – BV GO can show and track revenue details in real-time so there are no hidden fees and allows for a more transparent partnership.

If you read all the way here, hopefully it answers your questions. If you are still not sure about the cost and revenue projection for your property, feel free to contact us. We provide consultation for your property management questions and revenue projection.

We also provide zero management fees for your property needs so no need to worry about additional costs for us to manage your property. We make money only when you make money with our revenue-sharing model. If you want to know more about how we add value to your property and ensure a sizable return, check out our property management service.

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