Owning luxury villas in Bali as a side business is surely fun and lucrative! You can pour all of your creativity into space, meet interesting guests from all around the world as well as making money from it. It is a wise investment indeed, if you know how to manage the money properly. Because—like every other business—there are occasionally hidden fees and overlooked costs. In this post, we’ll look at some of the most typical overlooked costs of running a villa rental in Bali.
The Cost of Decorating Your Luxury Villas Bali
When it comes to short-term rental visitors, more are looking for a unique style, so it’s critical to put thought and attention into the furniture and decor. When it comes to furniture, it’s ideal to avoid cutting corners to save money – not only will guests appreciate the quality, but cheap pieces will need to be replaced much sooner. (Estate sales and secondhand shops are good places to look for savings if you’re on a limited budget.)
Many new hosts go over budget when it comes to furnishing because they plan for the big ticket items like beds and dining room tables but overlook the small touches like shower curtains and lamps.
Providing Toiletries and Supplies
When guests arrive at a luxury vacation rental in Bali, they expect to find sheets, pillows, towels, toilet paper, and other necessities. Failure to supply these materials is, in fact, one of the quickest ways to receive a poor rating on online booking systems. If you expect your property to have frequent turnovers, you’ll need many sets of each so that they may be rapidly swapped out before the next visitors arrive.
Consider the amount of hospitality you want to provide your visitors, and budget for goods that will win them over. Coffee pods, bathrobes, extra amenities, a basket of local food, and recreational equipment like bikes or kayaks are all common perks highlighted in reviews.
The Cost of Cleaning Your Vacation Rental
Many guests are accustomed to paying for a cleaning fee when they book a short-term rental, but calculating your costs and setting a price will take some time. Average cleaning fees on airbnb bali vila range from $65 for small spaces to upwards of $200 for large homes with more than six bedrooms.
Start by requesting quotes from cleaning services in your area and decide whether you will mark-up the cleaning fee to account for the time spent booking and managing the service.
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Unexpected Use of Utilities
You may be an expert at conserving energy, but that doesn’t guarantee that your guests will switch off lights when they leave the room or keep the air conditioning at a comfortable temperature. When budgeting for utilities, be generous and consider it a plus if your expenses are lower than projected.
The Insurance for Your Luxury Villas Bali
Spend some time on Facebook groups for short-term rentals or Google “holiday rental horror stories,” and you’ll be ready to get the most complete insurance coverage available to protect yourself and your short-term rental. While insurance is a real life-saver in times when something unwanted happened in your vacation rental, paying it per month can be a real cost.
The Cost of Maintaining Your Vacation Rental in Perfect Condition
Unfortunately, the cost of doing Bali villa business includes plumbing emergencies and broken furniture. The costs of emergency repairs and upkeep on appliances, plumbing, and electrical systems, as well as gardening, pest treatment, painting touch-ups, and property restoration, can quickly mount for new hosts.
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Fees for Property Management
One of the common problems of many owners of luxury villas Bali is remote property management. If you are a foreign investor, you probably cannot spend the entire year in Bali. When you are back in your country,
When you are not present, you will require someone to look after your property as well as the visitors that are staying in your home. The cost of a property manager varies depending on the sort of vacation home you buy, but you should budget between $110 and $250 per month.