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How Much Rental Yield Can You Expect from a Bali Villa in 2026?

Gross rental yields for Bali villas range from 5 to 15 percent in 2026. Net yields, after management and maintenance costs, sit between 4 and 10 percent. Canggu and Seminyak deliver the highest returns for short-term rentals. Sanur and Ubud perform better for long-term leases. Your actual yield depends on location, occupancy, and how you manage the property.

What Is the Average Rental Yield Per Area in Bali?

Returns vary significantly by location. Here are gross and net yields based on Property Plaza listing data and market research from early 2026.

Rental Yield by Area (2026)

AreaGross YieldNet YieldAvg OccupancyBest Rental Type
Canggu / Berawa10 - 15%7 - 10%70 - 80%Short-term / Monthly
Seminyak8 - 12%6 - 9%70 - 80%Short-term
Uluwatu / Bingin9 - 14%6 - 10%65 - 75%Short-term
Pererenan8 - 12%5 - 8%65 - 75%Monthly / Yearly
Sanur6 - 9%4 - 7%60 - 70%Long-term / Yearly
Ubud5 - 8%3 - 6%55 - 65%Long-term / Yearly

These numbers assume a well-maintained, properly marketed villa. A poorly managed property in Canggu can underperform a well-managed one in Ubud.

How to calculate your gross yield:

Gross yield = (Annual rental income / Property value) x 100

Example: A villa worth $200,000 that generates $20,000 per year in rent has a gross yield of 10 percent.

How to calculate your net yield:

Net yield = ((Annual rental income - Annual expenses) / Property value) x 100

The difference between gross and net is where most owners get surprised. Operating costs eat 30 to 40 percent of your gross rental income.

Does Long-Term or Short-Term Rental Give a Better Return?

It depends on your priorities. Short-term earns more per night but costs more to manage. Long-term gives lower but more predictable income.

Long-Term vs Short-Term Comparison

FactorShort-Term (nightly/weekly)Long-Term (monthly/yearly)
Gross yield10 - 15%6 - 10%
Occupancy needed65-80% to break even90-100% (one tenant)
Management cost20 - 30% of revenue0 - 10% of revenue
Wear and tearHigh (frequent turnover)Low (single tenant)
Furnishing standardHotel-quality requiredStandard furnished OK
Marketing effortConstant (Airbnb, Booking)Minimal (list once)
Cash flow stabilitySeasonal swingsSteady monthly income
Your involvementHigh (or pay a manager)Low

Real example (2-bedroom Canggu villa, value $200,000):

Short-term: $250/night x 70% occupancy = $63,875/year gross. Minus 35% operating costs = $41,519 net. Net yield: 20.8%.

Long-term: $1,800/month x 12 = $21,600/year gross. Minus 10% operating costs = $19,440 net. Net yield: 9.7%.

Short-term wins on paper. But that 70 percent occupancy rate is optimistic. During low season (January to March), occupancy can drop to 40 to 50 percent. And the 35 percent operating cost assumes you use a manager, which most short-term owners need.

Long-term rental gives you one tenant, one contract, and predictable income every month. On Property Plaza, you list your villa for free and connect directly with verified tenants. No commissions. No agents taking a cut. That means your net yield stays yours.

What Costs Eat Into Your Rental Yield?

Operating expenses consume 30 to 40 percent of gross income for short-term rentals and 10 to 20 percent for long-term.

Annual Operating Cost Breakdown

CostShort-Term RentalLong-Term Rental
Property management$3,000 - $8,000 (20-30%)$0 - $2,000
Staff (cleaning, gardener, pool)$3,600 - $6,000$2,400 - $4,800
Maintenance and repairs$1,500 - $3,000$1,000 - $2,000
Utilities (owner-paid portion)$600 - $1,200$0 (tenant pays)
Marketing / platform fees$1,000 - $3,000$0 - $500
Insurance$500 - $1,000$500 - $1,000
Supplies (linens, toiletries, etc.)$1,000 - $2,000$0
Total annual$11,200 - $24,200$3,900 - $10,300

The biggest cost difference is management. Short-term rental managers in Bali charge 20 to 30 percent of revenue. Long-term, you can self-manage with minimal effort. Property Plaza handles the marketing and tenant matching. You handle the relationship.

Staff costs are unavoidable. A villa needs regular pool cleaning, garden maintenance, and general upkeep. Budget $200 to $400 per month minimum for a small team.

For tax obligations on rental income, check our sister site Bali Property Scout, which covers PPh, PPN, and PHR requirements in detail.

How Does Location Affect Your Return on Investment?

Location determines both your rental price and your property value, which together decide your yield.

Emerging areas like Pererenan and Tabanan offer lower property prices with growing rental demand. This means higher yields today, with potential for capital appreciation.

Established areas like Seminyak and central Canggu have high rental prices but also high property values. Yields are moderate, but occupancy is reliable.

Quiet areas like Sanur and Ubud attract long-term tenants (families, retirees, remote workers). Lower nightly rates but higher occupancy and lower operating costs.

Where yields are growing fastest (2026 trends):

  1. Pererenan: Expats moving from crowded Canggu, prices still 10-20% lower
  2. Uluwatu / Bingin: Surf tourism and cliff-view premium driving demand
  3. North Bali: Early-stage market with lowest property prices and upcoming infrastructure (new airport, toll road)

Where yields are stabilizing:

  1. Central Canggu (Batu Bolong, Berawa): Saturated market, high competition
  2. Seminyak: Mature market, higher property prices limit yield growth

What Occupancy Rate Do You Need to Break Even?

Your break-even occupancy depends on your total costs and nightly or monthly rate.

Break-Even Calculator

ScenarioMonthly CostsRateBreak-Even Occupancy
Short-term, managed (Canggu)$1,500/month total costs$250/night6 nights/month (20%)
Short-term, self-managed (Ubud)$800/month total costs$150/night6 nights/month (18%)
Long-term (Canggu)$500/month total costs$1,800/month1 tenant (28% of rent)
Long-term (Sanur)$400/month total costs$1,200/month1 tenant (33% of rent)

Most villas break even quickly. The real question is how much profit you keep above break-even. A well-located, well-maintained villa listed on Property Plaza performs better than one relying solely on Airbnb during peak season, because you attract verified long-term tenants who stay longer and cost less to manage.

How to Maximize Your Rental Yield

  1. List on multiple platforms. Property Plaza for long-term tenants. Airbnb and Booking for short-term. Diversify your income streams.
  2. Price competitively. Check what similar villas in your area charge. On Property Plaza, you can see verified listing prices to benchmark your rate.
  3. Invest in fast internet. Digital nomads pay a premium for reliable Wi-Fi. Biznet fiber (100 Mbps) costs $40 to $50 per month and can justify $100 to $200 more in monthly rent.
  4. Keep your villa maintained. Small repairs become expensive problems. Budget $100 to $200 per month for preventive maintenance.
  5. Target the right tenants. Long-term tenants (6+ months) give you stable income and lower costs. Property Plaza connects you directly with verified seekers looking for exactly this.

Frequently Asked Questions

What is a good rental yield for a Bali villa?

A gross yield above 8 percent is considered strong for Bali. Net yields of 5 to 7 percent after all operating costs are realistic for a well-managed villa. In prime areas like Canggu and Uluwatu, short-term rentals can achieve net yields of 8 to 10 percent during high-occupancy periods.

How much does a property manager charge in Bali?

Property management companies in Bali charge 20 to 30 percent of gross rental revenue for short-term rental management. This covers guest communication, check-in/check-out, cleaning coordination, and marketing. For long-term rentals, management costs are lower (5 to 10 percent) or can be avoided entirely by self-managing through a platform like Property Plaza.

Is long-term or short-term rental better for beginners?

Long-term rental is simpler to start with. You find one tenant, sign a contract, and collect monthly rent with minimal involvement. Short-term rental requires more active management, higher furnishing standards, and constant marketing. If you want hands-off income, start with long-term and list your villa on Property Plaza for free.

Do I need a property manager to rent out my villa?

Not for long-term rentals. You can list your villa directly on Property Plaza, communicate with tenants yourself, and hire local staff for cleaning and maintenance at $200 to $400 per month. For short-term rentals, a manager is recommended unless you live nearby and can handle guest turnover yourself.

How long does it take to find a tenant for a Bali villa?

For long-term rentals in popular areas like Canggu, Seminyak, or Sanur, most well-priced and well-presented villas find a tenant within 2 to 4 weeks. Slower areas like Tabanan or North Bali may take 1 to 2 months. Good photos, competitive pricing, and listing on a verified platform speed up the process significantly.

Property Plaza verifies every listing and takes no commission — see how listings are verified or how it works.