Owning a vacation rental in Bali could be very rewarding. You can earn a very promising extra income, you can have your own private spot for getaway, and you can even save the property for retirement home. However, venturing a Bali real estate rental business is not always sunshine and rainbows. There are hardships to go through and certain qualities you need to attain to be a successful rental owner. So, before you decide to invest your money in vacation rental business, think if you can overcome these challenges!
Handling and Managing Bali Real Estate Rental by Your Own
A vacation house isn’t the type of investment that you can put on hold and forget about. It’s one of the most hands-on investments you can make, and it demands year-round dedication.
You’ll have to clean, prep, and resupply the property at the very least between each guest. If your property becomes popular, it may need a significant amount of work. Furthermore, having lots of different people renting your property will almost certainly result in increased wear and tear. And that means money for reparation and maintenance!
Hiring a professional property management firm to handle responsibilities like turnover, repairs, and maintenance, as well as other household chores is an option. However, it will not be free. Short-term rental property managers, on average, charge 15 percent more than long-term rental property managers!
Paying the Monthly Expenses
True, having a Bali real estate rental can give you a financial freedom—if you manage the financial right. Vacation rentals may wreak havoc on your financial flow if you’re not attentive. For starters, they entail an additional mortgage payment. Depending on the cost of the property, this alone might put financial strain on your family. There are also additional costs to consider, like as utilities, grass maintenance, and general upkeep. You’ll almost certainly need emergency repairs, and who knows how much they’ll cost? Before moving forward, take a look at your whole financial situation and make sure the additional expenditures aren’t going to put a burden on your budget.
Finding Guests for Your Property Through Various Marketing Channel
Owning a real estate rental in Bali is not just about furnishing a house and put it up in AirBnB. You have to compete with thousands of other villas and hotels for guests. A lot of work would go into this. You’ll have to furnish and decorate the space with comfortable and on-trend furniture and décor, optimize your listings to appeal to the correct audience, price the property appropriately for the market, and list your house on all of the leading rental platforms. On top of all of that, you should also be active on social media to engage with your audience. You have to keep up with the trends and always find new ways to attract audience to your property. During the shoulder seasons, you may even need to offer periodic discounts and promotions to keep the house occupied. Marketing a villa is a real work.