All prices on this page are quoted in USD unless otherwise noted.
One of the most common mistakes investors make when modelling Bali villa returns is understating costs. Gross yield numbers look great. Net yield after costs is what actually matters.
The good news: running a Bali villa costs significantly less than running a comparable investment property in Australia or Europe. No council rates, no strata levies, low utility costs, and staff wages that are a fraction of Western equivalents. But the costs aren't zero, and they need to be in your model.
Below is a full breakdown of every cost category, with real numbers from properties we manage.
Annual cost overview by villa size
| Cost item | 1BR villa | 2BR villa | 3BR villa |
|---|---|---|---|
| Staff (housekeeper + gardener + pool) | $2,400 | $3,600 | $4,800 |
| Utilities (electric, water, internet) | $1,200 | $1,800 | $2,400 |
| Insurance | $400 | $600 | $900 |
| PBB property tax (annual) | $100 | $200 | $300 |
| Routine maintenance & repairs | $800 | $1,200 | $1,800 |
| Maintenance reserve (1-2% of build cost) | $1,000 | $1,500 | $2,000 |
| Subtotal: running costs (excl. management) | ~$5,900 | ~$8,900 | ~$12,200 |
| Management fee (20% of gross revenue) | ~$8,500 | ~$10,800 | ~$17,100 |
| Indonesian rental income tax (10% of gross) | ~$4,300 | ~$5,400 | ~$8,500 |
| Total annual costs (all-in) | ~$18,700 | ~$25,100 | ~$37,800 |
Note: management fee and tax figures are based on mid-range gross revenue assumptions. Actual figures will vary by location, management company, and occupancy. Staff costs assume full-time housekeeper plus part-time gardener/pool maintenance.
Staff costs
Most Bali villas have at least one full-time housekeeper on site - they clean, prepare for guests, handle laundry, and often assist with check-in. Larger villas add a part-time or full-time gardener and pool maintenance person.
Monthly costs in 2026:
Full-time housekeeper: $180-$250/month (IDR 2.8M-3.9M)
Part-time gardener: $60-$100/month
Pool maintenance (service contract): $40-$80/month
Occasional cooking/hosting for premium bookings: $20-$50/booking
Staff wages in Bali are set above the Bali minimum wage. The regional minimum wage (UMP Bali) is around IDR 2.6M/month ($165 USD) in 2026. A well-run villa pays above this to retain good staff. Expect to pay BPJS (Indonesian social security) on top of the base wage, adding roughly 4-5% to staff costs.
Utilities
Electricity is the main utility cost. Bali runs on PLN (state electricity), priced in IDR per kWh. Air conditioning is the dominant cost driver - Bali is hot and guests run AC constantly. A 2-bedroom villa with 4 AC units running during guest stays will use $100-$200/month in electricity.
Electricity: $80-$200/month depending on size and occupancy
Water (PDAM or private well): $10-$30/month
Internet (Biznet or Firstmedia fiber): $30-$50/month
Waste collection: $5-$15/month
Insurance and tax
Property insurance in Bali covers the structure against fire, flood, and earthquake (Bali is in a seismically active zone). Rates are low - typically $300-$900/year for a standard villa depending on build value and insurer. Some management companies arrange block policies that cover all properties under management at lower individual rates.
Annual property tax (PBB, Pajak Bumi dan Bangunan) is minimal - typically $100-$500/year for a typical leasehold investment villa. The calculation is based on the NJOP (assessed tax value of the property), which is usually well below market value.
Indonesian rental income tax is 10% of gross rental revenue, withheld by the management company and remitted to DGT (Indonesian Tax Authority). It's a final tax, meaning no further Indonesian income tax is owed on that income. See our property taxes guide for the full picture.
Maintenance and repairs
Routine maintenance in Bali - painting, grouting, minor plumbing and electrical - costs a fraction of equivalent work in Western markets. Skilled tradespeople charge $15-$30/hour. Most routine maintenance jobs (repainting walls, fixing taps, resealing the pool) run $50-$300.
The bigger maintenance items happen every 3-7 years: full external repaint ($1,500-$3,000), pool resurfacing ($2,000-$4,000), appliance replacement (AC units fail eventually, $300-$500 each to replace), and roof maintenance. Budget a maintenance reserve of 1-2% of build cost per year to cover these without them hitting your P&L as a shock.
The tropics are hard on buildings. Humidity, salt air (in coastal areas), and heavy monsoon rains mean that preventative maintenance is genuinely worth doing. Villas that receive regular maintenance sell for more and generate better reviews - guests notice.
How Bali compares to Australia
The running cost advantage over Australian investment property is significant. A comparable Australian investment property ($700K-$1.5M in Sydney or Melbourne) carries roughly:
Council rates: $2,000-$4,000/year
Land tax (NSW): $1,500-$5,000+/year depending on value
Property management (8-12% of rent): $4,000-$8,000/year
Body corporate/strata (apartments): $3,000-$8,000/year
Maintenance: $3,000-$8,000/year
Building insurance: $1,500-$3,000/year
Total: $15K-$35K/year on a $1M Australian property generating $35K-$45K/year in rent at 3.5-4.5% yield. After costs, your net yield is often 1.5-2.5%.
A $269K Bali villa, by comparison, generates around $29K/year net after all costs - roughly 11% net yield. Lower purchase price, stronger rental income per dollar spent, cheaper running costs, the short-term rental model: those four things working together are what drive the gap.
