by kokowa.io
Managing a villa in Bali is key to ensuring your investment generates stable passive income. However, for management to be effective, it’s crucial to understand its financial aspects—from management fees to operational costs. In this article, we’ll explore what management fees cover, the services you receive for them, and the operational costs you can expect when managing a villa in Bali.
What Do Villa Management Fees Include?
Management fees are the amount you pay to a management company to handle the operations of your villa. These fees typically range between 10–20% of rental income, depending on the scope of services and the company’s reputation.
What Influences the Fee Amount?
The fee depends on several factors:
- Scope of Services: If management only includes marketing and rentals, the fee will be lower (around 15–20%). If it also covers maintenance, cleaning, and administration, it may be higher (25–30%).
- Villa Location: Villas in premium areas like Seminyak or Ubud may have higher fees due to greater demand and management complexity.
- Company Experience: Reputable companies with proven results charge more but often ensure higher occupancy and profit.
Tip: Always verify what the fee includes when choosing a management company. Some companies may charge additional fees for maintenance or marketing—transparency is key.
What Services Do You Get for the Fee?
Managing a villa in Bali involves a wide range of services that ensure your property operates as a profitable business while you enjoy passive income. Here’s an overview of what professional management typically includes:
Marketing and Rentals
Managers create attractive listings on platforms like Airbnb or Booking.com, set dynamic pricing based on season and demand, and handle guest communication—from answering inquiries to managing bookings and check-in/check-out.
Maintenance and Cleaning
Between guest stays, managers ensure the villa is cleaned, perform regular maintenance (e.g., pool, garden, air conditioning), and quickly resolve issues like breakdowns. This protects your property’s value and ensures guest satisfaction.
Administration and Legal Support
Managers track income and expenses, ensure compliance with local laws (e.g., rental taxes), and recommend appropriate insurance against damages or natural disasters.
Guest Support
They provide 24/7 assistance to guests, collect feedback, and offer additional services like transfers or a private chef, enhancing guest satisfaction and ratings.
Effective management ensures high occupancy—typically reaching up to 80%, with our experience showing an average occupancy of 93.5% during peak season.
Tip: When selecting a management company, always check customer reviews on the company’s Airbnb profile to ensure reliability and quality of service.
🏡 Case Study: Managing a Villa in Bali (15% Management Fee)
In this case study, we’ll examine a specific example of managing a villa with 90% occupancy in a given month, where the owner pays a 15% management fee. We’ll explore what this rate includes, the additional expenses incurred, and the benefits offered by higher management fee rates.
💼 What Does the 15% Management Fee Include?
The owner pays the management company 15% of rental income, which covers:
Property Management:
- Listings on platforms (Airbnb, Booking, Vrbo)
- Dynamic pricing based on season
- Guest communication
- Legal and accounting compliance with local regulations
Full Guest Services:
- Bookings, check-in/out, 24/7 support
- Issue resolution and feedback collection
- Improving ratings and repeat bookings
💸 Monthly Villa Expenses
In addition to management fees, you need to account for operational costs, which include routine expenses for running the villa and occasional additional costs for equipment. Here’s a breakdown based on real data:
Monthly Operational Costs
| Item | IDR | USD |
|---|---|---|
| Electricity | 4,012,000 | 253 USD |
| Bottled Water | 240,000 | 15 USD |
| Tank Water | 900,000 | 57 USD |
| Laundry | 450,000 | 28 USD |
| Wi-Fi | 555,000 | 35 USD |
| Cleaning Service | 3,500,000 | 221 USD |
| Pool Maintenance | 700,000 | 44 USD |
| Garden Maintenance | 700,000 | 44 USD |
| Security | 250,000 | 16 USD |
| Service Fees | 250,000 | 16 USD |
| Total | 11,557,000 IDR | 729 USD |
Additional Expenses (Equipment, Spare Linens, etc.)
These costs are irregular and often related to normal wear and tear or guest-related issues—such as lost keys, damaged or missing items, or replacing linens and towels.
| Item | IDR | USD |
|---|---|---|
| Air Diffuser | 185,000 | 12 USD |
| Plates | 149,000 | 9 USD |
| Glasses (2x) | 138,000 | 9 USD |
| Set of Spoons | 17,900 | 1 USD |
| Bath Towel (2x) | 28,000 | 2 USD |
| Face Towel (2x) | 128,000 | 8 USD |
| Hand Towel (4x) | 124,000 | 8 USD |
| Pillow Cover | 72,000 | 5 USD |
| Duvet Cover | 774,000 | 49 USD |
| Fitted Sheet | 935,000 | 59 USD |
| Total | 3,594,900 IDR | 227 USD |
🎯 Total Monthly Expenses
IDR: 15,151,900
USD: 956 USD
Summary
| Category | IDR | USD |
|---|---|---|
| Management (15% of Income) | 11,826,709 | e.g., from $6,300 revenue = $945 |
| Operational Costs | 11,557,000 | 729 USD |
| Additional Expenses | 3,594,900 | 227 USD |
| Total Costs | 15,151,900 | 956 USD |
📌 Recommendation: A higher management fee (e.g., 20%) may be justified for premium villas where the manager actively increases revenue—through better marketing, upselling services, VIP treatment, etc. For example, villas within larger complexes—such as resorts with dozens of units—often benefit from centralized reception, housekeeping teams, regular maintenance, and experienced management, ensuring consistent standards and increasing guest trust.
How to Minimize Costs and Maximize Profit?
Managing a villa abroad plays a critical role in the success of your investment. By choosing a reliable and experienced manager to handle all aspects of operations—from marketing and guest communication to maintenance and administration—you can fully focus on your daily life. Your only task will be to check your bank account each month as rental profits roll in, without worrying about the day-to-day hassles of running the villa. The right manager ensures your villa remains consistently occupied, in perfect condition, and generates stable passive income.
- Optimizing Operational Costs: For example, choosing energy-efficient appliances can reduce electricity costs. Regular maintenance prevents larger repairs.
- Dynamic Pricing: Managers can adjust prices based on demand, increasing revenue during peak seasons.
- Guest Satisfaction: High-quality services lead to repeat bookings and better reviews, boosting occupancy.
Why Choose Kokowa for Your Villa Management?
Kokowa does not provide direct property management services, but we’ll help you find a suitable management partner to take care of your villa in Bali. We connect you with vetted partners who have experience in the local market and ensure your property is managed efficiently—from rentals to maintenance and administration. This gives you the confidence that your investment is in good hands, allowing you to enjoy passive income without the stress.
Conclusion: Financial Clarity for Successful Management
Understanding the financial aspects of managing a villa in Bali is key to making your investment profitable. With the right manager and a clear overview of costs, you can maximize your passive income and minimize worries. Contact us today and let us help you find the ideal management for your villa! Want to learn more about how to buy a villa in Bali and prepare it for rentals? Check out our article How to Buy a Villa in Bali.
