Lease and sublease

[mdh338]

Newbie to Bali,

Anyone have experience with free lancers being a go-between with the owner of a property for long term leases and then managing it as a holiday rental?

I’ve spoken with a girl who does this but the year lease payment up front going to a free lancer does not set well with me. However she said we would get all the appropriate documents signed.

I’m looking for the best way to lease a place and be able to rent it out while I’m away 1 week to 10 days a Month.

 

[spicyayam]

I’ve spoken with a girl who does this but the year lease payment up front going to a free lancer does not set well with me.

Welcome to the forum. Your post is a little confusing. So it seems like you want to lease a villa (medium to long term) and rent it out on a daily basis when you are away.

What do you mean by freelancer? Do you mean someone who will help find guests for daily rental?

I know it sounds like an easy thing to do, but actually it's difficult to do legal. The main thing is that you need a rental licence like Pondok Wisata, in the owner's name and the owner of the property needs to pay the taxes. Unless the owner is willing to help do this, then you would be operating illegally. Many people do it, but you do open yourself up to problems.

 

[mdh338]

Welcome to the forum. Your post is a little confusing. So it seems like you want to lease a villa (medium to long term) and rent it out on a daily basis when you are away.

What do you mean by freelancer? Do you mean someone who will help find guests for daily rental?

I know it sounds like an easy thing to do, but actually it's difficult to do legal. The main thing is that you need a rental licence like Pondok Wisata, in the owner's name and the owner of the property needs to pay the taxes. Unless the owner is willing to help do this, then you would be operating illegally. Many people do it, but you do open yourself up to problems.

Thank you for your response spicyayam,

Yes that is exactly what I want to do. This “ free lancer “ ( she doesn’t work for a company ) was recommended by another company and she will be the go between for the lease with the owner and also advertise for the holiday rental. She says she is currently doing the same for others.

Have you heard of others having the “ problems “ you mention?

 

[runaS]

Hi,

here is some advice from Airbnb to run a vacation rental in Bali (unfortunately it is only available in Indonesian):

https://www.airbnb.com/help/article/2147/izin-usaha-di-bali

Either your neighbors, competition or banjar will be interested in what you are doing if your business starts running and you might also have a visit by authorities checking tax and licenses.

Cheers

 

[mdh338]

Hi,

here is some advice from Airbnb to run a vacation rental in Bali (unfortunately it is only available in Indonesian):

https://www.airbnb.com/help/article/2147/izin-usaha-di-bali

Either your neighbors, competition or banjar will be interested in what you are doing if your business starts running and you might also have a visit by authorities checking tax and licenses.

Cheers

Thank you runS for your response,

I see what you mean, maybe just to small of an area to remain anonymous for long.

Thank you.

 

[harryopal]

If you open that airbnb link and right click on your mouse the option will come up to translate. Click on that and you have it in English.

 

[mdh338]

Oh ok, thank you !

 

[dav733]

Be careful..people do it .but heard recently of a bule lady.renting a few rooms without a pondok wisata..authoritiies found out and she was deported!@??
I was thinking of doing same..in bali the walls have ears...

 

[mdh338]

Hi dav773,

Thank you for that. It would seem that if it’s ok with the owner and lessor, other people shouldn’t care..... but this is a foreign Country so...

 

[sayangku]

? Of course other people should care. It is taxable income. I would presume the same applies in your home country too.

 

[mdh338]

In my home Country, we mind our own business. If someone is able to make a few coins without having to give some to a corrupt government it’s ‘ good for them !’

 

[spicyayam]

Jealousy is pretty rife in Bali, among both locals and expats. Paying the tax on a villa/hotel, is not just about the money, it is a huge hassle.

 

[davita]

I hate to rain on anyones parade but the recent posts here concerning leasing/buying property in Bali and renting out when not being used should be ignored.
The situation isn't what it used to be years ago and the authorities are all out to find who owns villas and not complying with the law.
The Hotel Association have pressured gov't to ban those illegal villas etc as they are biting into hotel profits.
I've noticed the Pecalang visit many villas, usually at night, when unsuspecting renters don't have their story right.

Be careful and get proper advice before you lose your life savings.

 

[Mark]

Davita's advice is very sound and is based on both the law and the current reality. Proceed at your own risk, and if you do proceed in the manner described in your post #1, you could soon find yourself not only poorer but in a whole lot of trouble with immigration as well, which could mean the end of your visits to Indonesia (i.e., blacklisted).

 

[sayangku]

In my home Country, we mind our own business. If someone is able to make a few coins without having to give some to a corrupt government it’s ‘ good for them !’

Ah, I see. You seemed to suggest that if is between owner & lessor, then no-one else needs to know or care. But obviously the tax authorities care. Up to your own conscience & risk if you want to avoid. While the Indonesian government does still have issues, I think overall they have done an excellent job compared to Thailand/ Malaysia since 1998, with solid economic growth and a pretty seamless move to democracy. YMMV!

 

[mdh338]

Ah, I see. You seemed to suggest that if is between owner & lessor, then no-one else needs to know or care. But obviously the tax authorities care. Up to your own conscience & risk if you want to avoid. While the Indonesian government does still have issues, I think overall they have done an excellent job compared to Thailand/ Malaysia since 1998, with solid economic growth and a pretty seamless move to democracy. YMMV!

I agree

 

[Juggler]

Hey people not sure if this is the right place but i ahve a question.
I have found a place i wish to buy and have been told it has a pondok wisata but it isnt active. There is a current imb plaque at the entrance.
My question is can a pw be inactive and if so how does one activate it and the approx cost. The property is in berawa. From my reading the pw has to activated by the land owner. Is this correct and if so isit feasible to have the current lease owner activate it

 

[spicyayam]

I think a PW is good for 5 years. I think you need to check if the licence can be renewed or if you have to start the process again. and yes the licence is in the land owners name and they need to file monthly tax reports.

 

[Juggler]

I think a PW is good for 5 years. I think you need to check if the licence can be renewed or if you have to start the process again. and yes the licence is in the land owners name and they need to file monthly tax reports.

Thx spicy
If i were the land owner i would be reluctant to do monthly tax reports. ( i struggle doing it once a year), and if they did
I imagine that they would want a payment for filing the reports
Cheers

 

[spicyayam]

If i were the land owner i would be reluctant to do monthly tax reports. ( i struggle doing it once a year), and if they did
I imagine that they would want a payment for filing the reports

You are correct. And I would suggest to anyone starting this kind of business visit the office at least once to see what the process is like. You can of course get someone to do it for you, but that always carries a risk.