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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.
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)
| Area | Gross Yield | Net Yield | Avg Occupancy | Best Rental Type |
|---|---|---|---|---|
| Canggu / Berawa | 10 - 15% | 7 - 10% | 70 - 80% | Short-term / Monthly |
| Seminyak | 8 - 12% | 6 - 9% | 70 - 80% | Short-term |
| Uluwatu / Bingin | 9 - 14% | 6 - 10% | 65 - 75% | Short-term |
| Pererenan | 8 - 12% | 5 - 8% | 65 - 75% | Monthly / Yearly |
| Sanur | 6 - 9% | 4 - 7% | 60 - 70% | Long-term / Yearly |
| Ubud | 5 - 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.
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
| Factor | Short-Term (nightly/weekly) | Long-Term (monthly/yearly) |
|---|---|---|
| Gross yield | 10 - 15% | 6 - 10% |
| Occupancy needed | 65-80% to break even | 90-100% (one tenant) |
| Management cost | 20 - 30% of revenue | 0 - 10% of revenue |
| Wear and tear | High (frequent turnover) | Low (single tenant) |
| Furnishing standard | Hotel-quality required | Standard furnished OK |
| Marketing effort | Constant (Airbnb, Booking) | Minimal (list once) |
| Cash flow stability | Seasonal swings | Steady monthly income |
| Your involvement | High (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.
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
| Cost | Short-Term Rental | Long-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.
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):
Where yields are stabilizing:
Your break-even occupancy depends on your total costs and nightly or monthly rate.
Break-Even Calculator
| Scenario | Monthly Costs | Rate | Break-Even Occupancy |
|---|---|---|---|
| Short-term, managed (Canggu) | $1,500/month total costs | $250/night | 6 nights/month (20%) |
| Short-term, self-managed (Ubud) | $800/month total costs | $150/night | 6 nights/month (18%) |
| Long-term (Canggu) | $500/month total costs | $1,800/month | 1 tenant (28% of rent) |
| Long-term (Sanur) | $400/month total costs | $1,200/month | 1 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.
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.
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.
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.
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.
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.