How to create a rental business as a foreign investor in Bali in 2023

Bali is well known for its natural beauty, friendly people, and unique culture. It’s no wonder that this Indonesian island has become a popular destination for travelers from all over the world. With its growing popularity, Bali has also become an attractive investment destination for foreign real estate investors looking to create a rental business or to take advantage of the many opportunities around the island. If you’re thinking about starting a rental business in Bali, this guide will give you all the information you need to get started. From choosing the right location to getting the necessary permits, we’ve got you covered.

This is how to create a rental business in Bali

If you're looking to create your rental business in Bali, there are a few things you need to know. First and foremost, as a foreigner, you'll need to establish a local company (PT PMA). This can be done by working with a reliable law firm or consultancy agency in Bali.

Once you have your local company set up, you'll need to obtain the correct permits and licenses to operate your rental business from the relevant government agencies. Again, working with a reputable law firm or agency will ensure that this process is smooth and hassle-free.

Next, you'll need to find the perfect property for your rental business. This is where things can get tricky, as finding  property in Bali can be difficult and expensive if you are not sure about how to proceed and do not have particularly developed local knowledge, know how to manage the in and out of property contracts, etc.

 However, if you work with a good real estate agent, they should be able to help you find the perfect property for your needs.

Finally, once you have your property sorted, it's time to start marketing your rental business. There are many ways to do this, but one of the most effective is through online platforms such as Airbnb or HomeAway. By listing your properties on these popular sites, you'll be able to reach a wide audience of potential renters.

A widespread alternative is to hire a real estate management company that can do all the heavy lifting for you such as managing your listing and pricing on platforms like Airbnb, have your property staffed and always ready to host vacationers, etc. This type of agencies usually do not even ask for a monthly fee paid directly to them but instead, they take a cut from your revenue. 

Why Bali is a good place for a rental business

Bali is a renowned tourist destination, attracting visitors from all over the world. The island offers a wide range of activities and attractions, from its stunning beaches and scenic rice terraces to its vibrant nightlife and arts scene.

This makes it an ideal location for a rental business. There is a constant demand for accommodation, whether it be for holidaymakers or those looking to relocating to Bali permanently. And with good infrastructure and a favourable climate, setting up a rental business in Bali is relatively straightforward.

What’s more, as a foreign investor you will be entitled to certain tax incentives when you create a rental business, making Bali an even more attractive proposition. With all this taken into account, it’s no wonder that Bali is one of the most popular locations for rental businesses in Indonesia.

We have also written an article that can help you learn more about the tourist economy of the island of Bali and identify the four key benefits of creating a rental business. You can read here.

How to get started with a rental business in Bali

Are you looking for an opportunity to create a rental business in Bali? A rental business is a great option for foreign investors. Here a quick overview on how to get started with a rental business in Bali:

1. Choose your business model
There are two main options for starting a rental business in Bali: either as an individual entrepreneur or as a limited liability company (PT PMA). If you choose to operate as an individual entrepreneur, you will need to register your business with the Trade and Industry Office (KPPM) and obtain a Business License (SIUP). However, if you want to set up a PT PMA, you will need to follow the procedures for setting up a foreign-owned company in Indonesia.

2. Find the right location
The success of your rental business will largely depend on its location. You will need to find a place that is convenient for your target customers and where there is high demand for rentals. For example, if you want to rent out villas, it would be best to locate your business close to popular tourist areas such as Seminyak or Ubud.

3. Obtain the necessary permits and licenses
Before you can start operating your rental business, you will need to obtain the necessary permits and licenses from the relevant government agencies. For example, if you want to rent out villas, you will need to apply for a Villa Rental Permit from the Ministry of Tourism. Make

What is the first step to start your rental business in Bali

The first step to start your rental business in Bali is to find the right location.

You want to be sure that you are in a high traffic area (but not too much) so that you can get the most exposure for your business. Once you have found the perfect location, you will need to obtain the necessary permits and licenses from the local government. Once everything is in order, you will be ready to open your doors and start renting out your properties! (we have some experience in that, just contact us😊).

Conclusion

To conclude, if you are a foreign investor looking to start a rental business in Bali, there are many things to consider. But with the right preparation and guidance, your investment can be very successful. We hope this guide has given you some useful insights on how to get started and if you are in need to ask your own questions please, do not hesitate to contact us via Whatsapp

Keep reading: Indonesian economy and tourism data, Q3 2022

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