Bali Villa Rental Contract: A Clause-by-Clause Checklist

Signing a Bali villa rental contract? Check it clause by clause: who may rent it out, the rent, deposit, repairs, early exit, a sale and the language.

A Bali villa rental contract decides who you pay, what the rent covers, who fixes what and whether you get money back if plans change. A good lease names a landlord who may rent the villa out, lists the villa and its contents, fixes the rent, deposit and running costs, splits the repairs, and covers early exit, a sale of the villa and the language. Take this checklist (as of October 2026) to a viewing or a signing; it works for landlords too.

Why the contract matters more than the listing

A listing is an advertisement; the lease is what binds you both. Under the Indonesian Civil Code (KUHPerdata), a lease binds the parties like a law and can be ended only by mutual agreement or on grounds the law allows (art. 1338). Yearly leases are usually paid in full upfront, so the contract protects a year’s rent. Anything that matters to you, from pool service to a pet, belongs in writing. For prices, areas, viewings and paying safely, see our guide to long-term villa rental in Bali.

The Bali villa rental contract, clause by clause

Here is what a villa lease in Bali should include.

1. The parties and the landlord’s right to rent

• Names and IDs: full names, ID numbers (KTP, the Indonesian ID card, or passport) and addresses, with copies attached.
• An owner: see the land certificate (sertifikat) and check the name against the owner’s ID. Our property due diligence checklist explains certificates.
• Someone who leases the villa: see their lease; it should run past your end date and allow subletting. A tenant may not sublet without the owner’s permission unless his lease allows it; otherwise the owner can have that lease cancelled and is not bound by yours (Civil Code art. 1559).
• Spouses and heirs: property bought during a marriage is joint property unless the couple has a separation-of-property agreement. Ask whether a spouse or co-heirs must sign.
• Agents: ask anyone signing for the owner for a written power of attorney.

2. The villa and the inventory

Describe what you rent: the address, the certificate number, and anything shared or excluded, such as a staff room. Attach a signed inventory of furniture and appliances with dated photos of every room and any existing damage, plus the meter readings at handover. The Civil Code makes the tenant liable for damage during the lease unless he proves it was not his fault (art. 1564), and those photos are your proof.

3. Term, renewal and rent review

• Dates: start, end and handover. Match the term to your visa or stay permit; see our guide to visas for living in Bali.
• Renewal: a written lease ends automatically on its end date (art. 1570), and the owner may refuse to renew unless you agreed an extension right. Want a second year? Write in an option with a notice deadline.
• Rent review: a fixed figure or a clear formula is much stronger than “rent to be agreed”, which is little more than a promise to talk.

4. Rent, payment and receipts

• Amount and schedule: the rent in rupiah and the due dates (usually the full year upfront, sometimes two 6-monthly payments).
• Who you pay: a bank account in the name of the owner, leaseholder or company named in the lease; no cash, no third parties.
• Receipts: one for every payment. A receipt above IDR 5 million carries IDR 10,000 stamp duty.
• Rent tax: the landlord owes a 10% final income tax on the gross rent (PP 34/2017). An Indonesian company tenant, such as your PT PMA (foreign-owned company), must withhold it, so say whether the rent is before or after that tax.

5. The deposit

A refundable deposit is standard; its size is agreed villa by villa. State the amount, what may be deducted (unpaid bills, damage beyond normal wear), what proof deductions need, and a fixed return date.

6. What the rent includes, and who pays the rest

Inclusions vary villa by villa, so list each item as included or say who pays: electricity, water, drinking water, internet, gas, pool and garden care, cleaning and staff, garbage, security, any banjar (village) contribution (see clause 10) and PBB, the annual land and building tax. Our guide to villa utilities and running costs covers the amounts.

7. Maintenance and repairs

The Civil Code sets a baseline:

• Landlord: hands over the villa and keeps it fit for its intended use (art. 1550); carries out necessary repairs during the lease, except those that are the tenant’s duty (art. 1551); answers for defects that hinder use, even ones he did not know about, and compensates the resulting losses (art. 1552).
• Tenant: uses the villa with care, “as a good head of household”, and pays on time (art. 1560); is liable for damage during the lease unless he proves it was not his fault (art. 1564).
• Urgent repairs: the tenant must accept them, but beyond 40 days the rent is reduced, and if the home becomes uninhabitable the tenant may end the lease (art. 1555).

The Code’s rules are general, so write down a split for the villa. A common split: the owner keeps the villa habitable and handles major repairs, such as the structure and the roof, unless the tenant caused the damage; the tenant handles day-to-day upkeep. Say where pumps, air-conditioners and other equipment fall, and who pays for damage caused by guests. Add how faults are reported (in writing, with photos), how fast the owner responds, and whether you may fix an urgent fault yourself and deduct the cost, up to a cap.

8. The landlord’s access

The landlord must give you peaceful enjoyment of the villa (art. 1550). Agree on notice before visits (except in emergencies), on staff schedules and keys, and on viewings near the end of the lease.

9. Use of the villa

• Occupants and guests: who lives there, and how long guests may stay.
• Purpose: mention it if you work from home. Using the villa for another purpose, or in a way that harms the landlord, lets him ask for the lease to be cancelled (art. 1561).
• Subletting: generally only with the owner’s permission or if the lease allows it (art. 1559).
• Pets and alterations: written permission, and what happens to any alterations at the end.

10. House rules and the banjar

Attach any house or estate rules. A banjar is a neighborhood unit of the desa adat (customary village). Under Bali’s regulation on customary villages (Perda Bali 4/2019), residents who are not Balinese Hindu villagers, such as foreign tenants, have limited duties, and everyone must help protect the village’s sanctity, cleanliness and order. The details are left to each village’s own rules (awig-awig and pararem). Ask the landlord whether there is a contribution and who pays, and write it down.

11. Early exit

With a prepaid year, leaving early often means losing the unused rent unless the lease says otherwise; you cannot end a lease on your own just because plans change (art. 1338). Negotiate an exit before you sign:

• Replacement tenant: the right to propose one, whom the landlord may not refuse without good reason.
• Notice with a refund: unused rent refunded after a notice period, perhaps minus an agreed fee.
• Break clause: the right to leave after a set number of months.

Check the other side too: whether the landlord can end the lease early, and on what terms.

12. Sale of the villa or death of a party

A sale does not end a lease made earlier unless the lease said so when it was made (art. 1576), and a lease does not end when the landlord or the tenant dies (art. 1575). If the draft has a sale clause, ask to remove it, or at least get a long notice period, a refund of unused rent and compensation.

13. Damage, force majeure and an unusable villa

If the villa is destroyed, or damaged so badly that it can no longer be used, by an event beyond anyone’s control, the lease ends by law, without a court decision (art. 1553, as applied by the Supreme Court). If the tenant caused the damage, he must pay compensation. Prepaid rent is a separate question, so write in a pro rata refund of unused rent and define force majeure (flood, fire, earthquake).

14. Language and disputes

With an Indonesian landlord, the lease should be in Indonesian with English or your language alongside: Law 24/2009 requires Indonesian in agreements with Indonesian citizens or companies, plus a foreign-language version when a foreigner signs. A Supreme Court circular of December 2023 (SEMA 3/2023) says a missing Indonesian version is not, by itself, a reason to annul an agreement unless it was left out in bad faith, but a circular is not a law. Sign both versions together, check that they match, and say which prevails if they differ. For disputes, agree on talks first, then mediation, then the court or arbitration named in the lease.

Our yearly leases are bilingual English–Indonesian and cover the points in this checklist: browse our yearly villa rentals or tell us what you need.

15. Signing

• Signatures: both parties sign both versions and initial every page and annex.
• Meterai: an IDR 10,000 meterai on each signed original, signed across. A missing meterai does not make the lease invalid; the duty can be paid later, with a penalty, before the lease is used in court.
• Copies: each party keeps a signed original, plus copies of IDs, the certificate (or head lease), inventory and receipts.
• Notary: optional for a yearly lease; notarial deeds are usual for long leaseholds (see our guide to leasehold vs freehold in Bali).

Bali lease agreement checklist at a glance