Renting a house in Bali - what to expect

[PatrikB]

Hello,

We are a couple and moving to Bali for 1 year (or more).

We want to rent a house.

Our budget is around 40-60 millions IDR per year.

The house should have at least 2 bedrooms, hot water, A/C, internet connection (or an option to establish it), at least small garden, parking place or garage, be clean and in overall good condition and at some nice and safe location.

What we can expect for that money - are our requirements realistic?

What location would you recommend - we prefer to have reasonable access to restaurants, beach...not 1 hour drive or so.

What are the charges for the lawyer or notary preparing the rental agreement?

Are there any pitfalls we should be aware of ?

Thank you in advance for any advice.

Cheers,

Patrik

 

[pollyanna]

Hello,

We are a couple and moving to Bali for 1 year (or more).

We want to rent a house.

Our budget is around 40-60 millions IDR per year.

The house should have at least 2 bedrooms, hot water, A/C, internet connection (or an option to establish it), at least small garden, parking place or garage, be clean and in overall good condition and at some nice and safe location.

What we can expect for that money - are our requirements realistic?

What location would you recommend - we prefer to have reasonable access to restaurants, beach...not 1 hour drive or so.

What are the charges for the lawyer or notary preparing the rental agreement?

Are there any pitfalls we should be aware of ?

Thank you in advance for any advice.

Cheers,

Patrik

Patrik, during our first year in Bali we rented a home that easily met the requirements you list and it fell within your budget. It was in a homestay with lovely gardens and with beautiful rice field views. We had two beds, two baths, two verandas and hot water in the bathrooms and kitchen. It was in Pengosekan, Ubud, not near the beach. We did not have ac but we did have an internet connection. When the gas for the hot water ran out they replaced it for us but we paid for it. We also paid for our electricity.

We did not use a notary. Its Bali. Keep it simple. We said we wanted the place for a year. The owner took our money and gave us a hand-written receipt. All was well. The son of the owner still works with us, in other words we had, and still do, a good relationship. Relationships are very important in Bali.

 

[Rangi]

Relationships are very important in Bali.

100% agree with this.

 

[PatrikB]

Thank you for the info.

Just few things I would like to know (I don't have any experience on rental property in Bali so that is the reason):

Would it be possible to find something in the area (or close to) Seminyak-Kerobokan for that price?

How we can prove the owner is the "real" owner of the property - are there any official records or registry of land, buildings...just to avoid someone else will come the next day after our arrival and kick us out?

What about the maintenance - who should ensure it and pay for it (I am not telling about minor maintenance, but larger repairs if needed)

How does it work with the utility bills - electricity, water etc. - do we have to pay it extra on our name, or is it included in the rental?

Is it common practice to rent a house without any written agreement and is it safe ?

And is it common to pay cash or through bank transfer?

I am new to Bali so I don't have any relationships established yet but would be happy to change it.

Thanks in advance for any comments.

 

[spicyayam]

You can ask to see the certificate of the property, it will show the owner's name, compare to the owner's ID card. General maintenance (minor) is paid by the tenant. If a house requires major kind of maintenance, then that is probably a house you want to avoid! Usually the tenant pays the utilities, unless they are agreed to be included in the rent. I think an agreement is a good way to avoid trouble later and it should cover things like subletting, maintenance etc. One property we rented through an agent, we had an agreement made up, the next time we rented through a friend and didn't have any kind of agreement.

If you haven't been here long, I would err on the side of caution and get an agreement made up and have a notary check the property. And yes cash payments are common here, even for large purchases.

 

[balibule]

Hi Patrik

I am staying in a Perumahan (housing complex). The house I rent has 3 bedrooms, 3.5 bathrooms, 3 units airconditioning, small garden in front and back, open garage and security. There is also a shared swimming pool, security and garbage collection. I pay within your 40 - 60 million budget.

I live about 20 minutes away from Kerobokan, 20 minutes from Sanur, 10 minutes to Kuta and 10 minutes to Denpasar.

There are 18 houses from which one is currently available for rent.

 

[PatrikB]

Hi Balibule,

Thanks for the info.

Where is it situated and to whom should I contact to make an appointment?

 

[PatrikB]

Hi Spicyayam,

Thanks for helpful advices.

It is usual that the landlord presents some draft contract and after the T&C are agreed the contract is checked by the notary or the notary prepares the whole contract? What are the cost for that service?

 

[phil170258]

I think you would have real problem finding somewhere nice in that price range in Kerobokan/Seminyak. Up in Ubud. much easier to find. Houses can be very pokey and very dark (as opposed to villas). Can i ask why you need a garage? We have one but we can't be bothered to use to so leave our car in the driveway. And I agree with everybody about paperwork - as a friend told me when we first came to Bali, at some stage you just have to trust somebody!

 

[spicyayam]

I have limited experience renting places, but I would expect most local landlords not to bother with any kind of contract. Some people have posted stories of landlords reletting their house while the tenant was away for more than 1 month, for example:

A Balinese landlord will not know much about the rules, nor will they care, if you get deported after 6 months, they have the right to rent it if it has been vacant for 1 month without word from you. Also, you have to let them know if you are going away for over 1 month or they will re-rent it or move back in if they think you've gone, that's happened to a 2 people I know and it's in our lease agreement which is a standard clause.

- http://balipod.com/bali-expat-forum-f2/subletting-rented-property-t8083.html

Another story of what can happen you can read here: Thieves and Liars Borborigmus in Bali

I don't mean to alarm you, but I think it is good to be prepared. People have mentioned relationships and if you plan to stay here longer-term having a good relationship with a notary/lawyer can be helpful to your life here.

 

[verity]

hello i too am moving to bali not sure where to live either keep me in the loop

 

[balidavo]

Get a detailed agreement made up , and include all the "what ifs " etc , that way there is no come back later on ..., it doesnt have to go to the notoris , just make sure the owner signs on a rp6000 materai stamp and that will help it be " a bit more " binding - make sure you both have a copy.
If the roof caves in while your living in it you wont have to pay ..., but dont expect the owner to have any money to fix it either - or compensate you when you have to move out because of it ...., be prepared to count your losses and move on .
We paid 3 years up front ( the only reason for this was because we wanted the low price locked in for that timespan ) and after the first year the owner had a big ceremony comming up and turned up asking for the rent for next year , in which we reminded him we paid for 3 years ...., his reply was "are you sure? " , we said yes look at the contract -
Do you get my drift .
Also expect the owners to want to leave the offerings etc at the premises ( ie if they are hindus )

 

[pjkl]

Hi Patrik

I am staying in a Perumahan (housing complex). The house I rent has 3 bedrooms, 3.5 bathrooms, 3 units airconditioning, small garden in front and back, open garage and security. There is also a shared swimming pool, security and garbage collection. I pay within your 40 - 60 million budget.

I live about 20 minutes away from Kerobokan, 20 minutes from Sanur, 10 minutes to Kuta and 10 minutes to Denpasar.

There are 18 houses from which one is currently available for rent.

e

Hi, where is it ? I may be interested as well starting in September.

Thanks in advance

 

[daniel1111]

Hi Patrik,

from when exactly do you want to rent? I might be renting out my house, it fulfills all your requirements, except having 3 bedrooms instead of 2. Location is in Canggu, boarder to Dalung Permai. Its 5 minutes walk from Dalung Permai, where you can get all daily groceries, theres a Kasih Ibu Hospital too, 10 minutes drive to Kerobokan and Seminyak. 10 Minutes from Echo and Brawa beach. So the location is very nice, plus you have beautiful rice paddy view. The house itself is more villa style, very open, lots of light and newly build, just finished. Im especially proud of how I designed the bathrooms, which will easily keep up with much more expensive villas. Comes fully furnished. The price would be on the upper end of your budget though. If you are interested let me know from when you want to rent, cause thats important. Being used to contracts, I would however prefer a proper, detailed rental agreement.