Buying

Villa rental yield in Bali: the arithmetic people skip

Gross yield is a marketing number. The gap between it and what reaches you is large and predictable.

Updated 24 September 2026 · 5 min read

The short answer

Advertised gross yields for Bali villas are commonly quoted from roughly 5% to the mid-teens, while industry sources report the gap between that gross figure and realistic net cash reaching the owner at 40–60%, sometimes more.
Six deductions come out before net: management commission (reported at 15–25% of gross revenue, 20% the figure quoted most often), OTA platform fees (roughly 3% on a direct booking up to 15–18% through a multi-channel manager), cleaning and turnover, a maintenance reserve (commonly cited around 3–5% of property value a year), vacancy against the assumed occupancy, and tax.
On a leasehold, the asset amortises as well as producing income — a 25-year lease with 22 years left has 21 next year, and a yield projection that doesn’t subtract that cost is overstating the return.
Realistic occupancy for Bali short-term rentals is reported at roughly 45–65% island-wide, rising to 70–85% for well-located, professionally managed villas. Ask for twelve months of actual booking data before trusting either figure.

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.

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 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.

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. Use the specific villa’s own booking history rather than an island-wide average.

Cost, commission and occupancy figures 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.