Renting requirements.

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harryopal

Well-Known Member
May 5, 2016
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We are living in Jimbaran and our 5 year lease is about to expire and owner wants to renovate. In renting another house what documents should we ask for to ensure that it is a legitimate transaction?
One interesting property has just 1300 watts. We have a TV. Refrigerator, bathroom hot water, maybe 2 wall mounted air cons and plug in laptop. Will 1300 watts be adequate? Thanks in anticipation of responses.
 

AuroraB

Active Member
Dec 17, 2021
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1. First villa: I rented long term from a foreigner (that was based in another country).
- The owner was using a well known local agent.
- I inspected villa in person.
- I asked for copy of notarized land lease for due dilligence.

2. Second villa: I rented from local Balinese ( a well known character in the area).
- The owner was using a local well known agent.
- I inspected villa in person.
- I checked that the name on the IMB outside the villa matched owner name in the rental agreement.

A long term rental agreement was made and signed over stamps (1 original for owner, 1 original for me and 1 copy for agent). Dual language and with clear split of owner and tenant responsibilities.

Deposit paid at booking. The balance payment only after having original signed by villa owner in hand. All payments are done to bank account in owners name as clearly written in the rental agreement. Do not accept any last minute message to change payment destination.

I'm renting only for shorter durations (currently 6m at a time) so I'm assuming a little higher risk. For longer term maybe more checks to be done.

Electricity:
- I have not come across any villas or houses with less than 4,400W so far inspecting houses/villas, so 1,300 sounds tight with AC.
- Suggest to calculate the electricity load from W rating on the equipment/appliances. AC, water heater and refrigerator will dominate while electronics and LED lights are insignificant in comparison.
- I would also expect a pump somewhere if well water. We have pump for PDAM as well as water is stored temporarily in a ground tank (in the event PDAM is down).
 
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britoo

Member
Sep 11, 2018
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We are living in Jimbaran and our 5 year lease is about to expire and owner wants to renovate. In renting another house what documents should we ask for to ensure that it is a legitimate transaction?
One interesting property has just 1300 watts. We have a TV. Refrigerator, bathroom hot water, maybe 2 wall mounted air cons and plug in laptop. Will 1300 watts be adequate? Thanks in anticipation of responses.
Test - to see if the site considers me worthy to post today :)
 
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britoo

Member
Sep 11, 2018
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We are living in Jimbaran and our 5 year lease is about to expire and owner wants to renovate. In renting another house what documents should we ask for to ensure that it is a legitimate transaction?
One interesting property has just 1300 watts. We have a TV. Refrigerator, bathroom hot water, maybe 2 wall mounted air cons and plug in laptop. Will 1300 watts be adequate? Thanks in anticipation of responses.
Here is my 10c to take or leave as you please now I have been deemed worthy.

1 I would check the ownership documents (ideally original) right back to the Hak Milik.
1.1 I'd check to see if the property is mortgaged - and decide on your risk tolerance - if it's reposessed, the bank will want to sell it on and that's gonna motivate them to see you gone. I assume your rental money will be gone too by then. That said they can get a mortgage on their land at any time anyway.
1.2 Check the little plan (back page) and stated dimensions to see if the property is actually on the land in the certificate and the dimensions line up. Your bathroom or septic tank might be on the neighbours empty land :) or your 3 are building buit on 1 are of land.
1.3 I'd check if the property tax is paid up to date more as a kind of character reference but this might be too severe a filter - again your risk tolerance
1.4 A quick visit to the land office might prove very informative - they have access to the certs, imb, plans plans and zoning online and might share if you explain your reasoning.
1.5 Part of the IMB really but check the land zoning - near our last place my partner struck up a convo with a German chap we had never met before and learned he had leased land long term. His smile dropped through the floor when my partner explained all this land, his included, was green zone and building was entirely unlawful.

2 If you are sub-letting I'd still do 1 but also check the authenticity of the master let - does it allow sub-letting, for how long does it still run - and maybe cheeky but prroof it has been paid up already. The old lease paid yearly, year paid 1 upfront then sublet to gullable for 5 years and then forget to pay further installments has been seen in these parts. You can guess who gets the short end of that stick!
2,1 I dont know if its practical but if subletting I'd involve the original owner as Hak Sewa does not exist in the land ofice. The paper work exists only the filing cabinets of the involved persons and the notaris.

2 I'd check there is an IMB in place as of course no IMB means no legitimite building to let so might well invalidate any rental contract you sign up to. On this one though you may have to decide your level of risk aversion as ... this is Bali. I'd suggest seeing the IMB document and not accepting the tin plate at face value. Realty may differ wildly from the paperwork.

3 To be legal any contract MUST be in Indonesian so you are disadvantaged unless you have native levels of language skill.
3.1 You also need the assurance of the little 10k stamp without which things are not legitimate for who knows what reason

4 Check out your contract and that of any lessee above you for onurous clauses ie:
You might be responsible for all maintainence including major work
You might be responsible for paying their annual land tax
You might be responsible for paying their income tax
There are often wishy washy bad-behavior clauses that allow for the lease to be terminated for any trivial infraction at your loss
etc


I think youll struggle with what you propose and a 1.3kW supply but youll need to inspect the stickers on the appliances to be sure - maybe you have some super efficient machines.

Typically, an electric kettle, hair dryer and air-con units will need a kW or so each so I'd say you want to upgrade to 2, 3 or 5 assuming the wiring can take it!


Hope this helps.


Best wishes for 2023
 
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harryopal

Well-Known Member
May 5, 2016
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Thank you for your replies Britto and AuroraB. Our 5 years here was on a handshake with the landowner and a stamped receipt indicating the length of the lease. A bit like a novice tight rope walker doing the first act without a safety net. My wife is Indonesian and pretty sharp so I stepped onto the rope and lucky didn't fall.
 

Markit

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Sep 3, 2007
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Karangasem, Bali
Holy Shit! by the time you've done all that the 5 year lease will have run out. Not saying a handshake is enough but there has to be a happy medium? Me, I'd check if the owner was an upstanding citizen (family, kids, religious, nice house himself) then agree with signed lease agreement at notary both with copy stipulating how long and how much then fecking move in.

You can check everything then get hit by a falling tree.
 
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Markit

Well-Known Member
Sep 3, 2007
8,881
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Karangasem, Bali
I had to try 3 times to post my BS on this dumb ass website!!!!

I am rapidly losing patience with your stupid software !!!!!
 

AuroraB

Active Member
Dec 17, 2021
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I had to try 3 times to post my BS on this dumb ass website!!!!

I am rapidly losing patience with your stupid software !!!!!
I experienced problems a week or two ago when attempting to post write-up including some external links. Unable to post. This happen a few times before as well. After removing the links usually able to post for some reason.

When problems occur I just save my text elsewhere, take a deep breath, continue doing nothing and check back later to see if the site behave.
 
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ronb

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Aug 14, 2007
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Ubud, Bali
We are living in Jimbaran and our 5 year lease is about to expire and owner wants to renovate. In renting another house what documents should we ask for to ensure that it is a legitimate transaction?
One interesting property has just 1300 watts. We have a TV. Refrigerator, bathroom hot water, maybe 2 wall mounted air cons and plug in laptop. Will 1300 watts be adequate? Thanks in anticipation of responses.
No 1300 is not enough for you. Think something like 4500
 
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