Buying a Villa in Bali for Rental Income: How to Calculate Seasonality and Yield
Buying a villa in Bali to rent out can generate income, but only if you correctly calculate seasonality, occupancy, and all costs. The short answer: target 60–75 percent annual occupancy, budget 30–40 percent of gross revenue for operations, and expect a typical net yield of 6–10 percent per year on the property value.
Seasonality: Two Peaks, Two Troughs
Bali has two high seasons and two low seasons.
High season (peak occupancy, maximum rates):
- July–August: European summer holidays, Australian school holidays.
- December–January: Christmas, New Year, Chinese New Year.
Nightly rates run 40–60 percent above base, occupancy 90–100 percent.
Shoulder season (strong occupancy, slightly below peak rates):
- April–June: Dry season, fewer tourists, comfortable weather.
- September–November: After school holidays, before the rains.
Occupancy 70–85 percent, rates 10–20 percent below peak.
Low season (rain, low occupancy):
- February–March: Peak rainfall, fewer guests.
- June can be transitional.
Occupancy 30–50 percent, rates 30–50 percent below base. Many owners offer long-stay discounts (14+ nights).
How to Calculate Annual Occupancy
Do not trust marketing claims of "90 percent occupancy." Realistic annual occupancy for a quality villa with good marketing is 60–75 percent. A new villa without reviews may see 40–55 percent in year one.
Quick-estimate formula: ``` Annual nights = 365 * expected_occupancy Annual gross revenue = annual_nights * average_nightly_rate ```
Average nightly rate = (peak 0.3 + shoulder 0.4 + low * 0.3) - weighted by season length.
Operating Costs: What Eats Your Revenue
After deducting these line items, what remains is net profit.
| Item | Share of Gross Revenue | Notes |
|---|---|---|
| Management (marketing, bookings, guest comms) | 15–20% | Balila charges a fixed percentage, no hidden markups |
| Utilities (electricity, water, internet) | 5–8% | Air conditioning is the biggest driver |
| Staff (housekeeping, gardener, security, pool) | 8–12% | Scales with villa size |
| Maintenance & repairs reserve | 3–5% | Breakdowns, repainting, linen replacement |
| Taxes (PBB, non-resident income tax) | 2–4% | Depends on ownership structure |
| Platform fees (Airbnb, Booking, bank charges) | 3–5% | Already netted out if you work via an operator |
Total operations: 30–40 percent of gross revenue.
Worked Example (Current Season Indicative)
3-bedroom villa in Canggu, purchase price USD 350,000.
- Peak rate: USD 350/night
- Shoulder: USD 280/night
- Low: USD 180/night
- Weighted average: ~USD 260/night
- Target occupancy: 70% (255 nights/year)
- Gross revenue: 255 * 260 = USD 66,300/year
- Operations (35%): ~USD 23,200
- Net profit before tax: ~USD 43,100
- Gross yield on cost: ~12.3%, net yield: ~8.6%
Villa prices and nightly rates change. Insert the current catalogue price table via .Area Listings Price per month Canggu 7 $ 2 275 - $ 6 600 Ubud 3 $ 2 380 - $ 10 938 Seminyak 1 $ 3 300
Pre-Purchase Checklist
- Land title - Only Hak Pakai or Hak Milik via PT PMA. Leasehold requires renewal and hurts resale.
- Location matched to demand - Canggu, Berawa, Kedungu, Uluwatu, Seminyak, Ubud, Sanur. Check distance to beach, supermarket, clinic.
- Build quality - Roof, plumbing, electrics, foundation. Hidden defects eat the first-year budget.
- Management company - 1–3 year agreement with occupancy KPIs. Balila provides transparent CRM reporting.
- Legal due diligence - Notary search: certificates, taxes, disputes.
- Exit strategy - Resale in 3–5 years, leasehold renewal, handover to management.
Next Steps
Sales listings on the site: /sale/ (EN), /ru/sale/ (RU). Live objects with photos, floor plans, and per-villa yield calculations.
Want a curated shortlist for your budget - message us on Telegram @BalilaBot or hit "Match Me a Villa" on the website.
Villa catalog with current prices: Canggu, Seminyak, Ubud and other areas.
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