Buying & investing
Renting Out Your Villa by the Year in Bali: What Rent to Expect and How It Works
Renting out your villa by the year is the quiet way to earn from it: one tenant, the rent paid in advance, no bookings, none of the licenses holiday rentals need, and a villa that is lived in and looked after. This guide is for owners. It shows what yearly rent villas like yours ask for in southwest Bali right now, what tenants expect to be included, what the lease must say, the tax you owe, and how the process runs from the first photos to the handover of the keys.
How much yearly rent can a villa earn in Bali?
In 2026, villas rented through us by the year start at about IDR 150 million a year for 1 bedroom and usually ask IDR 150–300 million for an unfurnished 2-bedroom villa, IDR 200–450 million for a furnished one and IDR 250–500 million for a furnished 3-bedroom villa. Four bedrooms or more start at about IDR 450 million, and luxury villas reach close to IDR 1 billion or more. These are our guide prices, from the yearly villas we have listed and rented out in southwest Bali.
| Bedrooms | Yearly rent (2026) |
|---|---|
| 1 bedroom | From about IDR 150 million |
| 2 bedrooms, unfurnished | Usually IDR 150–300 million |
| 2 bedrooms, furnished | Usually IDR 200–450 million |
| 3 bedrooms, furnished | Usually IDR 250–500 million |
| 4 bedrooms or more | From about IDR 450 million; luxury villas close to IDR 1 billion or more |
The box below shows what our yearly villas ask right now, by bedrooms. It is filled in from the current listings and changes as villas are rented and new ones come in.
Within those ranges, what moves your villa up or down:
- The village. Canggu, Berawa, Pererenan, Umalas and Seseh are more expensive; villages further out from central Canggu, such as Padonan, Babakan, Munggu and Cepaka, are usually a little cheaper.
- The pool, the garden and the finish. A private pool, enclosed air-conditioned living and a recent renovation ask more than an older open-plan villa.
- Furniture. Furnished villas ask more; unfurnished villas rent for less and suit tenants who bring their own furniture and plan to stay.
- What is included. Pool and garden care included raises the rent a little and lowers the tenant’s monthly costs.
- Access. Car access to the gate, a quiet lane and reliable internet matter to yearly tenants.
Yearly lease, monthly rental or holiday rental?
A yearly lease is one contract with one tenant. In law it is a lease under the Indonesian Civil Code, like renting out a house anywhere. Holiday stays are different: they are a tourist-accommodation business that needs a suitable zone, a building approval and a business license, and since May 2026 Bali has closed new foreign-owned applications in 18 business lines, including renting out property. Our guide to renting out a villa in Bali: licenses, tax and 2026 rules explains the legal side in full.
| Yearly lease | Monthly rental | Holiday rental | |
|---|---|---|---|
| Income | Paid in advance, certain for the year | Paid month by month; higher per month, empty weeks between tenants | Highest per night in season, much less out of season |
| Work for you | A viewing, a lease, a handover | Several tenants a year, cleaning and handovers | Bookings, guests, staff, reviews |
| License | No tourist-accommodation license | No tourist-accommodation license | Tourist-accommodation license, zone and building approval |
| Tax | 10% final tax on the rent | 10% final tax on the rent | Normal income tax and regional tax |
| Who it suits | Owners who want a quiet, predictable income | Owners who use the villa part of the year | Owners who run it as a business |
What yearly tenants expect
Yearly tenants rent the villa, not a service. The clearer the list of what is and is not included, the fewer calls you get.
- Included as a rule: the villa and its furniture if furnished, and the owner’s repairs: the roof, the structure and keeping the villa habitable. Say in the lease where the pump, the water heater and the appliances fall, and who pays the land and building tax (PBB).
- Usually paid by the tenant: electricity, water, internet, gas and drinking water, and often pool and garden care. Cleaning and staff are the tenant’s to arrange.
- Agreed case by case: pool and garden care included in the rent, the banjar (village) contribution, pets, small changes to the garden or furniture.
- Internet and water pressure are tested at every viewing. A reliable connection and a working pump are worth sorting out before the first viewing.
Including cleaning, pool and garden care in the rent is worth considering even though it raises your costs. Your own staff keep coming to the villa every week, so you hear about a leaking roof, a failing pump or a garden drying out while they are small problems, the pool is kept by someone who knows it, and the villa comes back at the end of the lease in the condition you expect. Tenants like it too: one payment, no staff to find and manage, and a clear line of responsibility. Price the services into the rent, name them in the lease, and keep the right to replace the staff if the tenant is unhappy with them.
Every listing on our website shows what is included and estimates the monthly running costs, so tenants compare the real cost of two villas before they ask for a viewing. Our guide to villa utilities and running costs has the current electricity tariffs.
The lease, the deposit and the payment
A private written lease signed by both sides is valid under the Civil Code; a notary is optional. When you, the owner, are Indonesian, the lease should be bilingual, Indonesian and English side by side; as a precaution we draft all our leases bilingual and go through them with both sides.
The lease should settle:
- Rent, term and payment: the amount, the start and end dates, and when the money is due. Yearly rent is normally paid for the whole year in advance; some owners accept two installments, usually for a smaller discount.
- Deposit: usually one to two months’ rent, refundable; what may be deducted and when it is returned.
- Inclusions and costs: the list above, written out.
- Repairs: which are yours and which are the tenant’s.
- Renewal: whether the tenant has the first right to renew and how the next rent is set.
- Early exit and a sale: under the Civil Code a sale does not end an existing lease unless the lease says so, so decide now what you want.
- Stamp duty: an IDR 10,000 meterai on each signed original.
The tenant pays the rent directly to you, into your account, against your receipt. With us, no rent passes through the agency.
Tax on yearly rent
Rent from land and buildings carries a final income tax of 10% of the gross rent (Government Regulation 34/2017). If your tenant is an Indonesian company, it withholds the tax and gives you proof; a private tenant does not, and you pay it yourself. “Gross” includes service charges the tenant pays you, so agree in the lease who bears the tax and keep the receipts. For foreign owners the tax position depends on your title and how you hold the villa; our guide to renting out a villa in Bali and a tax consultant can help.
How renting out with us works
- We see the villa and agree the rent. We tell you what similar villas in your village have asked and rented for, and what is worth fixing first. Our fee is agreed with you in writing at this point and is only due when a tenant signs.
- Photos, text and six languages. The listing goes online in English, Indonesian, Russian, French, Spanish and Chinese, and tenants who registered for a villa like yours are notified.
- Viewings. We bring tenants who fit the villa and your terms, and tell you honestly what they said.
- The lease. A bilingual lease, the move-in inventory with photos and meter readings, and the handover of the keys.
- During the lease. We stay the contact for you and your tenant at no extra charge: questions about the villa, repairs that are the tenant’s or yours, and the renewal talk well before the end.
Most of our villas are rented by the year. If your villa is empty or your tenant is leaving, tell us about your property and we will come and see it.
Frequently asked questions
How much can I rent my villa for in Bali per year?
With us in 2026, from about IDR 150 million a year for 1 bedroom, usually 150–300 million for an unfurnished 2-bedroom villa, 200–450 million for a furnished one, 250–500 million for a furnished 3-bedroom villa and from about 450 million for 4 or more. The village, the pool, the finish and what is included decide where your villa sits. The box above shows what our yearly villas ask right now.
Do I need a license to rent my villa out by the year?
A yearly lease is a contract under the Civil Code, not a tourist business, and the licenses for holiday rentals do not apply to it. What you owe is the 10% final tax on the rent.
What tax do I pay on yearly rent in Bali?
A final income tax of 10% of the gross rent. An Indonesian company tenant withholds it and gives you proof; with a private tenant you declare and pay it yourself. Agree in the lease who bears it.
Should I rent my villa furnished or unfurnished?
Furnished villas ask more and suit tenants staying a year or two. Unfurnished villas rent for less and suit tenants who bring their own furniture and plan to stay longer. If your furniture is tired, unfurnished is often the better offer.
How long does it take to find a yearly tenant?
It depends on the price, the village and the season. A well-priced villa with good photos, working internet and a clear list of what is included finds a tenant much faster than an overpriced one. We tell you what similar villas have asked and rented for before you set the price.
Sources
This guide is general information, not legal, tax or immigration advice. Rules in Indonesia change and are applied differently from office to office, so have a notary (PPAT), tax consultant or licensed visa agent confirm the details for your situation before you act.
Published by Richter – Real Estate Bali, a family-run agency in southwest Bali. Facts checked against official sources on 2 November 2026.