thekman1964
Hi all. Hoping any Bali expat with a bit of property knowledge may be any to help me here. I am trying to work out how much of potential villa value should be put aside for maintenance and overhead costs.Assuming the following:A nothing too special 2 bedroom furnished villa in Sanur. Less than 5 years old with a swimming pool.Value of the property is $300,000. Rental income of $2500 per weekInitial two year forecast occupancy rate of 30 weeks per year.Given the above very broad assumptions, do any experts think that budgeting 10% of property value per year would be ballpark for Maintenance and overheads on the villa?Thanks heaps.
Markit
You're thinking you're gonna get a 25% ROI/yearly? Hardy-fecking-har! Good luck mate. If that was the case your house would be worth a shitload more than $300k. Your question is about maintenance so: It's like owning the Golden Gate - you start renovating at one end and when you're finished you start again. If you are able to get anything like the occupancy you've mentioned then consider they will destroy the place and demand immediate repairs because they're paying $2500/week (hardy-har!) so you'll need someone that can do everything from garden to electrical repairs 24/7 - forget that immediately. You'll need several someones that can do that and that will be in Sanur so calculate around 4/5 million a month EACH, parts not included.
thekman1964
Thanks for that. Lot's there for me to consider.
ronb
Browse the Sanur Villa Rentals group on Facebook and then re-think you asking price for a week. Another good place to look is rumah123.com
Mark
$2500 per week for a two bedroom 'nothing too special' villa is way over the top and unrealistic. Given the huge choice of rental accommodation in Bali you can get 'something special' for that price. In addition to ronb's advice, you should look for comparable villas on Airbnb and actually try and go see the places to assess the market and the competition.
