Did you know that properties managed as short-term rentals in Bali can earn up to 25% more revenue than yearly rentals? Here’s how we do it at Bukit Vista.
Hi, I’m Jason, a business journalist at Bukit Vista, a leading property management company in Bali with over a decade of experience helping property owners. Let me take you through why daily rentals by Bukit Vista outperform yearly rentals in revenue generation at Villa in Bali and will place you at the top 1% on the property rental market.
Daily Rental vs Yearly Rental Case Study: Villa in Bali, Kerobokan
The bar graph comparing daily rental earnings and yearly rental earnings for a Villa in Bali at Kerobokan vividly demonstrates the revenue advantage of short-term rentals. Over the year (November 2023 to November 2024), the property generated $46,202.58 USD from daily rentals, significantly exceeding the yearly rental average of $27,783.04 USD for similar 3-bedroom villas in the area.
This 66.3% higher earning potential is reflected in the graph, where the blue bars, representing daily rental earnings, consistently rise above the orange bars, which show the static, monthly breakdown of yearly rental income. The graph highlights the dynamic nature of short-term rentals, with monthly earnings spiking during high-demand periods, such as holidays or peak tourist seasons. Meanwhile, the stagnant yearly rental income remains unaffected by market trends, underscoring the flexibility and earning power of dynamic pricing.
Daily Rental vs Yearly Rental Case Study: Villa in Bali, Uluwatu
Similarly, the graph showcases the earnings comparison for a Villa in Bali at Uluwatu, a hotspot for premium travelers. The short-term rental earnings for this property totaled $53,977.66 USD over the year, surpassing the average yearly rental income of $39,464.55 USD for the area by 36.78%.
In the graph, the blue bars representing daily rental income show noticeable peaks during high-demand months, showcasing how dynamic pricing and seasonal adjustments capture additional revenue. In contrast, the orange bars, reflecting monthly averages of yearly rental income, remain flat throughout the year. This stark contrast underscores the earning potential of short-term rentals, particularly in tourist-heavy areas like Uluwatu, where demand fluctuates but remains consistently high.
Property owners often debate whether to pursue daily rentals or yearly leases. At Bukit Vista, we’ve analyzed the numbers, and the verdict is clear:
Villa in Bali sold for daily rental consistently outperform yearly rental in revenue generation.
Here’s why:
3 Key Facts About Why Short-Term Rentals Drive at least 25% Higher Profits
Key Fact #1: Increased Revenue Per Night
Short-term rentals benefit from dynamic pricing strategies, which allow property owners to adjust rates based on real-time demand. During peak travel seasons or holidays, rates can surge significantly higher than fixed yearly leases.
Seasonal pricing allows you to capitalize on peak travel times, offsetting any low-season dips. While yearly rentals lock you into a fixed income, short-term strategies let you ride market highs.
By allowing shorter stays during high-demand periods, properties can increase their booking frequency, filling gaps in the calendar and avoiding revenue stagnation.
Key Fact #2: Diversified Guest Profiles
Short-term rentals cater to a variety of guests, from tourists to remote workers, creating multiple revenue streams. Each new booking is an opportunity to generate income, as opposed to relying on a single long-term tenant.
Short-term rentals can be tailored to meet the needs of specific guest types—business travelers, vacationers, and digital nomads—maximizing occupancy rates year-round.
With short-term rentals, owners can upsell value-added services such as cleaning, scooter rentals, PlayStation setups, or local tours. These additional revenue streams are unavailable in traditional long-term leases.
Key Fact #3: Superior Marketing and Visibility
Platforms like Airbnb and Booking.com provide unmatched global visibility. Unlike yearly rentals, short-term listings tap into a broader audience, ensuring higher demand.
Since daily rentals leverage detailed and well-planned marketing strategies to attract global clients through multiple platforms, enhanced property presentation becomes a key driver for higher profits and maximized revenue potential.
Short-term rental platforms connect property owners to international travelers, creating opportunities for higher rates and diverse guest profiles.
Setting Below the Lowest Price: A Strategy That Works
Sometimes, short-term rental owners hesitate to lower prices during low demand. But here’s the truth that we offer:
a lower price is better than no bookings at all.
Here’s a quick analysis why lower price is the best strategy during low demand, while the marketing efforts has been high.
- Filling Gaps Brings Long-Term Rewards
- A single booking can boost your property’s visibility on platforms like Airbnb, leading to more bookings.
- Algorithmic Advantages
- Active listings with bookings rank higher on search results, increasing exposure to future guests.
- Revenue Beats Vacancy
- Even lower nightly rates contribute to covering fixed costs like utilities and cleaning fees, ensuring no idle losses.
Conclusion: Why Short-Term Rentals Are the Smarter Choice
At Bukit Vista, our proven short-term rental strategies consistently outperform yearly leases in generating revenue. According to our internal source, Biggr which stores decades of our track records and data, our property in Kerobokan, for instance: over the past year, it earned $46,202.58 USD through daily rentals, which is 66.3% higher than the average yearly rental income of $27,783.04 USD in the area. Similarly, in Uluwatu, another property we helped has achieved $53,977.66 USD in earnings, surpassing the average yearly rental of $39,464.55 USD by 36.78%.
These real-world examples highlight how short-term rentals, supported by dynamic pricing, global exposure, and seasonal advantages, unlock your property’s full revenue potential far beyond the limitations of yearly leases. Let us help you maximize your property’s success with strategies tailored to Bali’s thriving tourism market!
Short-term rentals empower property owners to maximize revenue through dynamic pricing, diversified guest profiles, and superior marketing. While yearly rentals may offer stability, they can’t compete with the flexibility and earning potential of daily rentals.
At Bukit Vista, our proven strategies—like short-term rentals and dynamic pricing—help property owners achieve higher occupancy and profitability. Bukit Vista is here to help you reach the top 1% of the market!
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