Property maintenance in Indonesia in 2024
In Indonesia, and particularly in Bali, most property buyers view their purchases primarily as profitable investments. They carefully consider entry conditions, exit strategies, expected returns, and the ongoing costs of maintaining their assets.
However, these maintenance costs can vary significantly depending on the property and the management company in charge. This article will explore the key expenses associated with property maintenance in Indonesia.
Key Maintenance Costs for Property Owners in Indonesia
Property management costs
As we move into 2025, Bali’s real estate market will see developers offering more than just «bare metres». They will provide a full cycle of property management services, from project handover to tenant search, unit management, and tax support. Investors will receive a ready-made rental business, with the management company taking on the responsibilities of renting out apartments or villas.
The fee for these services varies depending on the rental duration (monthly or daily) and the quality and reputation of the property management company.
Typically, property management companies charge a commission of 10% of income after taxes for monthly rentals and 20% for daily rentals.
Aggregator or Agency Commissions (OTA Commissions)
To attract tenants, management companies often use aggregators like Airbnb, which charge a commission for their services. In Bali, these commissions generally range from 4% to 9% of the rental price.
From $129,000
Completion in: 2027.I 29 units in total
From $296,000
Completion in: 2026.I Total of 44 apartments
From $308,000
Yield 16.0% 51 units in total
From $179,000
Completion in: 2025.II Total of 50 apartments
From $88,000
Yield 11.0% Completion in: 2026.III
From $159,000
Completion in: 2026.II 49 units in total
From $318,000
Completion in: 2025 Total of 20 apartments
Property Tax
Property owners in Bali pay several regular tax levies.
Land and property tax (PBB)
Property tax is calculated on both the value of the land and the value of any buildings that may occupy it. The tax rate is 0.5%. The tax is levied annually.
Property owners under the Hak Pakai tenure must pay PBB, while those under Hak Sewa are exempt, as this tenure does not grant ownership or land use rights. Learn more about Hak Sewa and Hak Pakai.
- income tax: 10% of revenue;
- VAT (only on commercial property rentals): 11%;
- stamp duty for notary certification of rental agreements: 10 thousand rupees, or $0.63, per document.
Read this guide for more details on property taxes in Bali.
Property insurance
Indonesia is an earthquake-prone region, so properties are built to withstand seismic activity, with developers often offering a 10-year guarantee on structural elements. However, to safeguard against natural disasters like earthquakes and hurricanes, some investors opt for property insurance.
Basic home insurance costs around IDR 2–3 million annually (up to $190), while comprehensive plans with extended disaster coverage can range from IDR 5–10 million per year (around $635).
From $129,000
Completion in: 2027.I 29 units in total
From $308,000
Yield 16.0% 51 units in total
From $159,000
Completion in: 2026.II 49 units in total
From $257,000
Completion in: 2025.I 17 units in total
From $817,000
Completion in: 2026 3 units in total
From $85,000
Completion in: 2025.IV 33 units in total
From $245,000
Completion in: 2025.III 25 units in total
Utilities Costs
Utilities in Bali are relatively affordable and are usually included in the rental price. Developers typically estimate the following monthly utility costs:
Unit Area | Electricity | Utilities |
125 sq. m | $100 | $400 |
100 sq. m | $100 | $360 |
70 sq. m | $100 | $245 |
28 sq. m | $80 | $100 |
Internet and TV
Bali’s high-speed internet is provided by a few major companies, with GlobalXtreme and MTM Bali being the largest.
Bali internet providers:
200 Mbps | 400 Mbps | |
$19 | $32 | |
$19 | $31 |
Another provider, IndiHome, offers cable TV services in bundled packages for about the same $30–32, but internet speed in this case reaches a maximum of only 100 Mbps.
Moreover, for English-speaking expats, the matter of TV connection is less relevant, as broadcasting is conducted in Indonesian.
Maintenance and repairs
Some management companies set a fixed percentage for depreciation and repair costs, while others determine renovation expenses in absolute terms after a set period. A general guideline is that depreciation costs should be around 0.5% of monthly revenue.
For a full renovation, costs could reach approximately $5,000 for a 125 sq. m property every five years.
The Importance of Choosing the Right Property Management Company
Bali’s property market has evolved with the influx of tourists and growing interest from foreign investors. The number of individual travellers willing to allocate large budgets to Bali is on the rise, with many preferring quality-branded hotels or properties managed by reputable operators.
In 2024, finding a management company is often resolved during the project selection stage, as most developers either manage their own properties or partner with reliable management companies. These companies typically handle:
Property management often includes:
- marketing;
- hotel customer service;
- maintenance;
- 24-hour security;
- cleaning;
- monthly reports for investors;
- yield payment support;
- tax support.
When evaluating potential investments, it’s crucial for investors to assess not only the quality and location of the property but also the developer’s track record of completed projects under management.
Tranio’s experts are ready to analyse properties, locations, and management company efficiency, and calculate potential yields. Contact us to receive a curated selection of projects with high-quality management.
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Taking all these costs into account, you can create a financial model for your property investment. For instance, consider the maintenance of a 70 sq. m townhouse in the Melasti district managed by one of Bali’s leading developers:
Month | January |
Days | 31 |
Occupancy | 95% |
Rental price per month | $3850 |
Revenue per month | $3658 |
Tax 10% of revenue | $366 |
Revenue less tax | $3292 |
Management company commission, 10% | $329,2 |
Utility payments | $245 |
Electricity | $100 |
Amortisation (0.5% of revenue) | $18,29 |
Net income | $2599 |
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