Townhouse 2BR in Canggu
Canggu · 2 bedrooms
Rp 4.716.464.393
Buying
Bali Villa Rental Yield 2026: Why Net Is 40–60% Below Gross
Gross yield is a marketing number. The gap between it and what reaches you is large and predictable.
Published 24 September 2026 · Updated 20 October 2026 · 7 min read
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Gross yield and net yield are different questions
Gross yield is annual rental revenue divided by what you paid for the property, or the total investment including the lease. It answers how much the villa generates before anything comes out. Net yield is what’s left after every operating cost, divided by the same base, and it answers the only question that actually matters: what reaches you. An agent quoting ‘yield’ without saying which one is quoting the bigger number.
Property for sale in Canggu
See all 198 →- About the same as the median price of 20 similar leasehold 2-bd homes in Canggu (±30% size, lease 19.5–32.5 yrs): Rp 4.754.000.000.
Villa 4BR in Canggu
Canggu · 4 bedrooms
6% below the median price of 8 similar leasehold 4-bd homes in Canggu (±50% size, lease 16.5–27.5 yrs): Rp 8.692.000.000.Rp 8.163.111.449
Villa 2BR in Canggu
Berawa · 2 bedrooms
22% below the median price of 20 similar leasehold 2-bd villas in Canggu (±30% size, lease 19.5–32.5 yrs): Rp 4.844.500.000.Rp 3.791.311.762
What comes out of gross
Industry sources report the gap between a quoted gross yield and net cash at roughly 40–60%, sometimes more, and none of what causes it is unusual or avoidable — it is the ordinary cost of running a short-term rental.
| Cost item | Typical range reported | Comes out of gross revenue |
|---|---|---|
| Management commission | 15–25% (20% most common) | Yes — usually the largest single deduction |
| OTA platform fee | ~3% direct booking to ~15–18% via a manager’s channels | Yes, usually passed straight through |
| Cleaning and linen between guests | Varies by villa size | Yes |
| Maintenance reserve | ~3–5% of property value a year | Yes — often left out of a projection |
| Vacancy | Gap between assumed and actual occupancy | Reduces revenue before any cost is even deducted |
| Tax | 10% final (PPh 4(2)) or 22% corporate, depending on structure | Yes |
A worked example
Take an illustrative three-bedroom villa advertised at a 10% gross yield on a USD 400,000 purchase — USD 40,000 a year in rent at full, assumed occupancy. Apply a 20% management commission (USD 8,000), a 10% blended OTA fee (USD 4,000), a 4% maintenance reserve on property value (USD 16,000), and a realistic 60% occupancy instead of the assumed 100% (cutting remaining revenue by 40%). What’s left is closer to USD 7,000–9,000 a year before tax — a net yield in the region of 2–2.5%, not the advertised 10%. The numbers on any specific villa will differ, but the direction of the gap will not: run your own version of this before treating a quoted yield as real.
The leasehold clock
A freehold asset can appreciate indefinitely. A leasehold cannot — it is a wasting asset by design, and every year of income is also a year of the remaining term consumed. A lease with 22 years left has 21 next year, and if the yield calculation doesn’t amortise that, it is overstating the return by the value of the year being spent. As a rough sense of scale: on a 25-year lease worth USD 400,000 with no extension priced in, straight-line amortisation alone is around USD 16,000 a year — a real cost a gross-yield headline never shows.
Occupancy is the assumption that breaks the number
Reported occupancy for Bali short-term rentals varies widely by source and location — figures in the 45–65% range are common island-wide, while well-located villas under active professional management are reported closer to 70–85%. Whichever figure a projection uses changes the answer more than almost anything else in the calculation, and it is also the easiest figure for an interested party to inflate. Treat any projection built on 80%-plus occupancy as optimistic unless the specific villa’s own booking history supports it.
What independent data says
Most occupancy and yield figures for Bali come from agencies and managers who sell or run villas. Three sources measure the market without selling it: AirDNA, which reads booking data from Airbnb, Vrbo and Booking.com listings; BPS, Indonesia’s statistics agency, which surveys hotels every month; and Horwath HTL, whose yearly report uses figures from members of the Bali Hotels Association. None of them publishes a yield.
AirDNA’s 57% is close to the 60% the worked example above uses. It is an average over rooms, studios and large villas alike, so the USD 24,800 a year the average listing earned is not what a three-bedroom villa earns, and it is before every cost in the table above.
AirDNA also reports that from September 2025 to September 2026 the average daily rate fell 19.3% and the number of active listings fell 45.9%, while occupancy rose 34.7%. AirDNA does not say why. The fall in listings came in the year Horwath HTL describes a 31 March 2026 deadline for short-term rentals on booking sites to prove they are licensed. A villa’s rate from 2025 may not be its rate now.
| Figure | Period | Source |
|---|---|---|
| Short-term rental occupancy: 57% of available nights booked | 12 months to September 2026 | AirDNA, Bali market page |
| Average daily rate: USD 130 a booked night | 12 months to September 2026 | AirDNA |
| Revenue per available night: USD 74 | 12 months to September 2026 | AirDNA |
| Average revenue per active listing, before host costs: USD 24,800 | 12 months to September 2026 | AirDNA |
| Active short-term rental listings: 47,977 | September 2026 | AirDNA |
| Star-rated hotel room occupancy: 68.19% (69.54% in August 2025) | August 2026 | BPS Bali |
| Room occupancy in non-star hotels and other accommodation: 43.16% | August 2026 | BPS Bali |
| Hotel occupancy about 74%, average daily rate IDR 2.35 million (USD 150) | 2025 | Horwath HTL, Bali Hotels Association members |
What to ask for before you trust a yield number
- Twelve months of actual booking data — revenue, occupancy and average nightly rate by month — not a projection.
- The all-in cost, not just the headline management commission: OTA fees, maintenance reserve and any marketing spend, in writing.
- Whether the projection amortises the lease, if the property is leasehold.
- Whether the figure quoted is gross or net, and net of which costs specifically.
- Whether the figure is before or after tax, and under which structure.
Net yield by area (2026)
Asking prices, median to median, not one villa's return. Each row takes twelve months of the area's median monthly asking rent over its median asking price for a home, from the live listings of Baliestate's partner agencies on 5 November 2026; the rented homes and the homes for sale are different houses.
These are monthly rents, so the net column is for a villa let by the month or the year: it is after a 4% upkeep reserve (3–5% of the price a year reported), and before management, empty months between tenants and tax. It assumes the villa is let all twelve months. The last column also takes off a 25-year lease used up evenly, 4.0% of the price a year. For a villa let to holiday guests, with management and booking fees, use the calculator below.
| Area | Median rent / month | Median asking price | Gross | Net after 4% upkeep | Net after a 25-year lease | Listings |
|---|---|---|---|---|---|---|
| Seseh | Rp 37.000.000 | Rp 1.939.500.000 | 22.9% | 18.9% | 14.9% | 17 rent / 32 sale |
| Ubud | Rp 41.900.000 | Rp 4.047.000.000 | 12.4% | 8.4% | 4.4% | 28 rent / 95 sale |
| Uluwatu | Rp 45.000.000 | Rp 4.504.000.000 | 12.0% | 8.0% | 4.0% | 67 rent / 252 sale |
| Canggu | Rp 43.000.000 | Rp 4.713.000.000 | 10.9% | 6.9% | 2.9% | 343 rent / 195 sale |
| Nusa Dua | Rp 30.000.000 | Rp 3.465.500.000 | 10.4% | 6.4% | 2.4% | 11 rent / 30 sale |
| Seminyak | Rp 30.000.000 | Rp 3.650.000.000 | 9.9% | 5.9% | 1.9% | 29 rent / 17 sale |
| Tabanan | Rp 31.100.000 | Rp 4.856.000.000 | 7.7% | 3.7% | -0.3% | 13 rent / 105 sale |
| Pererenan | Rp 40.000.000 | Rp 8.424.000.000 | 5.7% | 1.7% | -2.3% | 70 rent / 41 sale |
Holiday-rental yield calculator
For a villa let to holiday guests, with a management company and booking sites taking their share. Put in one villa's price and rent, by the night or as a monthly figure. It starts from an area's median asking rent and median asking price, from partner agencies' live listings on 5 November 2026; the costs are assumptions taken from the ranges industry sources report, so change them to the villa's own figures where you have them.
Common questions
What yield is realistic for a Bali villa?
Quoted gross figures are frequently reported at double the realistic net outcome or more. Insist on real booking history rather than a projection, and amortise the lease if the property is leasehold.
What’s the difference between gross and net rental yield?
Gross yield is rental revenue divided by purchase price, before any costs. Net yield subtracts management, OTA fees, maintenance, vacancy and tax first — it’s the number that actually reaches you.
How much of gross rental revenue actually reaches the owner in Bali?
Industry sources put the total gap at roughly 40–60% of gross revenue once management, OTA fees, maintenance, vacancy and tax are all accounted for.
Does a leasehold change the yield calculation?
Yes. A leasehold consumes part of its own value every year it runs, and a yield figure that doesn’t amortise the remaining term is overstating the real return.
What occupancy rate should I use to estimate a Bali villa’s returns?
Reported island-wide occupancy runs roughly 45–65%, rising to 70–85% for well-located, professionally managed villas. AirDNA measured 57% across Bali’s short-term rental listings in the 12 months to September 2026. Use the specific villa’s own booking history rather than an island-wide average.
Looking for a home in Bali?
Tell the Baliestate assistant your budget and dates. It replies in minutes with homes that fit and books the viewings.
Cost, commission and the 45–65% and 70–85% occupancy ranges in this article are drawn from Bali property-management and agency reporting, not an independent audit — verify them against the specific villa’s own accounts before relying on a yield projection. The AirDNA, BPS and Horwath HTL figures were read on those publishers’ own pages on 20 October 2026; AirDNA’s page refreshes monthly.
Sources and further reading
Related guides
- Rental income tax in Bali: what actually applies
- Villa Management Companies in Bali: Cost and What You Get
- Is Bali's villa market oversupplied? What the data shows
- The lease extension clause: the most valuable paragraph in the deed
- Yearly Tenant or Nightly Guests? Letting a Bali Villa Long-Term or Short-Term