One of the first decisions as property owner is to define which property management company will handle the villas. Bali is certainly the most attractive place in terms of property investment. The last few years have placed Bali in the spotlight, offering one of the highest Return on Investment from 10 to 25%. However with the competition increasing and the number of villas under construction, the battle to get a high ROI has grown and intensified. While it could have been easy to get a high ROI without a management company, it is now more and more recommended to get the services of a professional as guests are increasingly demanding, requiring hotel-like services and expecting top-notch customer service. 

 

Marketing and Experience of the property management company

Bali has seen in the last few years several property management companies emerging trying to get a piece of the pie. A property management company is the key to get the most of your property in Bali. Unfortunately a lot of property management companies or developers are offering their services without having any experience to handle the property. As other businesses, having an experienced property management company in Bali is important. The experience is not a certitude of success but it brings trust and confidence to entrust your property to someone with enough experience.

Handling marketing and sales on Airbnb, Instagram or Booking.com is not something learned in 2 days. Unfortunately, some developers or new actors arrived on the market promising inflated returns without having experience managing villas in Bali. For their financial projections, they start with the desired return and derive the average daily rate. It should be the other way around…

Marketing, sales, execution and maintenance are key factors to ensure the viability of the investment and selecting a professional is important.

luxury villa managed by property management company in bali

Independent property management company

A property management company needs to be independent from any other providers in order to minimise the cost and maintenance of the property. Choosing a professional independent from the developer is also crucial to ensure a competitive management.

 

Competitive and Flexibility pricing

Bali has different management companies with different pricing structures and it might sometimes be difficult to understand how the owner of the property will be charged. A pricing with the property management has to be clear without hidden cost. The price is usually defined with 3 2 component:

  • Marketing fee (success fee)
  • Management fee (fixed monthly fee)

A property management company asking 30% marketing fees makes no sense nowadays. The marketing fee is usually based on the income of the property while the other components are a fixed fee.. A fair and competitive pricing on marketing fees in Bali oscillates between 15 to 20%. Finally, a property manager should be able to provide a simulation report detailing expected revenues and expenses.

 

Communication and Trust

Unfortunately Bali has seen a few stories of property managers using the villa for themself while the owner was away or organising private events. TRUST is key and having a clear communication and plan with the property manager in Bali is important to ensure a long term relationship. Like in every business, clients and service providers are always happy in a growing market when the tide lifts all boats, however maintaining communication when a market slows down is also crucial.

 

Handling your tax and legalities with your property management company

Property management is a business and handling legalities is another. While specialists like ILA Global Consulting can assist you, a property manager is here to clear all your local taxes in order to provide you the net amount of your income.

It is essential for property managers to understand the legal framework, obtain the necessary business licence, and fulfil tax obligations. These responsibilities help ensure that villa owners avoid legal troubles, as the ultimate responsibility falls on them.

luxury villa in Bali

Immerse in the balinese culture

Having a property manager is also a company that is able to provide service to the host in order to immerse them in the balinese culture. Having the best services is important to get the best reviews:

  • Breakfast
  • Check in and Check out experience
  • Fast and good communication
  • Extra service and tours

Managing a property does not boil down to only advertising the villa and cleaning the rooms, it is also about creating the overall full experience for the guests.

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