Blog

Thinking of renting out your home or property here in Bali? Putting your property on the market is easy enough - all you need to do is figure out whether you would like to rent it out on a short-term or a long-term basis. Your decision should be based on a few factors including location, type of property, supply, and demand, among others.

Let’s take a look.

Long Term Rent

• Cash Flow

With long-term tenants who pay right on time, you can be sure of a predictable and stable cash flow. You won’t have to follow up with them every single month for payments as they would be making large yearly or twice yearly payments. Additionally, you can be sure that they won’t up and run in the middle of the night, leaving you high and dry. Even if they do, you won’t have to worry as payment has been made up-front, so all you need to do is find a different tenant to take over!

• On-Going Maintenance

Long-term tenants tend to care more about the home or property that they are staying in. Whether it is furnished or unfurnished, long-term tenants would invest more time and energy turning your property into a home, a place that they would love and feel safe, cosy, and comfortable.

• Utility Bills & Damages

Long-term tenants would have to foot the utility bills. Here in Bali, this would usually mean electricity bills, cable TV, and anything else that aren’t included in the agreement. WIFI is usually included but if they were to break or damage anything on purpose, they would have to pay to replace and repair any and all damages. You could also ask for a security deposit if you’re worried about rogue tenants causing trouble anytime throughout their stay. This applies to both long and short-term rentals.

Short Term Rentals

• More Rental Income

Renting out your property on a daily, weekly, and monthly basis can really increase your earnings. This is especially true during the high season when prices would be adjusted to meet market demand. You can enjoy full occupancy for months on end. But do keep in mind that with daily and weekly rentals, and some monthly rentals, you will need to foot all utility bills including electricity, WIFI, and water.

Unfortunately with short-term rentals, the cost of maintenance and upkeep would be higher. With every new check-ins and check-outs, there would be laundry, linen change, and general cleaning. The cost would be even higher if you have a pool and a garden, which needs to be maintained every few days. As holidaymakers are looking for beautiful, clean, and aesthetically pleasing places, you would need to make sure that your place is sparkling clean, shiny, and bright.

• Marketing & Advertising

To get tenants, you’ll need to constantly promote your property whether through social media or property agents. It will consume time and energy but without these, you run the risk of leaving your property empty for extended periods of time!

Ready to put your property on the market? Contact us now. Bali Coconut Living is a leading Seminyak-based villa property agent ready to assist you in buying, selling, and villa maintenance!