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Before signing a Bali villa lease, verify the owner's identity, check the building permit (IMB/PBG), test the internet speed, inspect the pool and AC, read every contract clause, and document the villa's condition with photos. Never pay without a written contract. These checks take 1 to 2 hours and can save you thousands.
A legitimate villa owner should be able to show you these documents. If they refuse, walk away.
Owner Document Checklist
| Document | What It Proves | Red Flag If Missing |
|---|---|---|
| KTP (Indonesian ID) or Passport | Owner's identity | You do not know who you are paying |
| SHM, SHGB, or Lease Agreement | Property ownership or rights | Owner may not have legal authority to rent |
| NIB (Nomor Induk Berusaha) | Business registration for rental | Property is not legally registered as a rental |
| IMB / PBG (Building Permit) | Villa was built legally | Construction may not meet safety standards |
You do not need to verify these documents yourself. But seeing them confirms the owner is legitimate and the property is legally rented. On Property Plaza, owners go through a verification process before their listings go live.
For detailed information on Indonesian property permits and legal requirements, visit Bali Property Scout.
Walk through every part of the villa before signing. Bring your phone for photos and notes.
Physical Inspection Checklist
| Area | What to Check | Why It Matters |
|---|---|---|
| Pool | Water clarity, pump noise, tiles, filter | A green or cloudy pool means poor maintenance |
| AC units | Turn on every unit, check cooling speed, listen for noise | AC repair is $20-$50 per unit, replacement $250-$400 |
| Water pressure | Run every shower and faucet simultaneously | Low pressure is common and hard to fix |
| Hot water | Test hot water in every bathroom | Water heaters fail often in Bali |
| Electricity | Check the capacity (PLN meter), count AC units | Underpowered meters trip when multiple ACs run |
| Internet | Run a speed test on your phone (Speedtest app) | The owner's claim may not match reality |
| Doors and locks | Test every door, check locks, inspect for termite damage | Security and privacy |
| Windows | Open and close every window, check for leaks | Rainy season will expose any gaps |
| Ceiling | Look for water stains, mold, cracks | Signs of past or current roof leaks |
| Walls | Check for mold (especially behind furniture), cracks, peeling paint | Humidity damage is common |
| Kitchen | Test stove, check fridge, inspect cabinets | Appliance repairs add up |
| Drainage | Check yard drainage, ask about flooding during rainy season | Some areas flood during heavy rain |
| Gate and access | Test gate (manual or electric), check road access | Narrow access or broken gates cause daily frustration |
Do this inspection during daytime. You will see problems you would miss at night: water stains, mold, paint damage, and general wear.
Every rental contract in Bali should include these items. If any are missing, add them before signing.
12 Contract Must-Haves
| # | Contract Item | What to Verify |
|---|---|---|
| 1 | Full names and ID numbers | Your passport, owner's KTP |
| 2 | Property address (including banjar) | Exact location, not just area name |
| 3 | Rental period | Start date, end date, renewal terms |
| 4 | Price and currency | Monthly/yearly amount, IDR or USD, exchange rate method |
| 5 | What is included | Pool, garden, cleaning, internet, utilities (list everything) |
| 6 | What is NOT included | Electricity, water, gas, repairs (be specific) |
| 7 | Security deposit | Amount, refund conditions, timeline for return |
| 8 | Payment schedule | When each payment is due, payment method |
| 9 | Maintenance responsibilities | Who pays for repairs: owner vs tenant |
| 10 | House rules | Guests, noise, pets, smoking, subletting |
| 11 | Early termination | What happens if you or the owner wants to end early |
| 12 | Condition report | Signed checklist with photos, attached to contract |
Contract red flags:
Deposit disputes are the most common problem in Bali rentals. Protect yourself upfront.
Deposit Protection Steps
Standard deposit amounts:
Utility surprises are the second most common complaint after deposit issues.
Utility Checklist
| Utility | What to Ask | What to Verify |
|---|---|---|
| Electricity (PLN) | What is the meter capacity? Is it prepaid (token) or postpaid? | Check the meter yourself. 2,200W is minimum for AC. 3,500W+ is comfortable. |
| Water (PDAM or well) | Is it PDAM (city water) or ground water? Who pays? | Ground water may need pump maintenance. PDAM is more reliable. |
| Internet | What provider? What speed? Is it fiber? Who pays? | Run a speed test at the villa. Ask to see the last bill. |
| Gas | Is it LPG canisters or piped? | LPG is standard ($5-$10/month for small tanks). |
| Garbage | Is garbage collection included? | Monthly pickup costs $3-$5. Some owners include it. |
Internet specifics to check:
For yearly leases with large upfront payments ($10,000+), having a notaris (Indonesian notary) witness the signing adds legal weight to your contract.
When to use a notaris:
Cost: $30 to $50 for witnessing a signing. This is a small price for legal protection on a $15,000+ transaction.
For monthly rentals or short stays, a notaris is not necessary. A clear written contract signed by both parties is sufficient.
Safety checks that take 10 minutes and protect your health and security.
Safety Inspection
| Check | What to Look For |
|---|---|
| Fire safety | Are there any fire extinguishers? Is the gas connection secure? |
| Electrical safety | Exposed wiring, overloaded outlets, proper grounding |
| Pool safety | Pool fence if you have children, anti-slip tiles around pool |
| Security | Quality locks on all doors, gated access, lighting at night |
| Structural | No large cracks in walls, stable roof, no leaning structures |
| Pest history | Ask about termites, rats, or snake issues. Check wooden structures. |
On Property Plaza, all listed villas go through an inspection process. You deal directly with verified owners, which reduces the risk of unsafe or misrepresented properties. Browse verified villas.
Yes. Everything is negotiable: price, deposit amount, included services, early termination terms, and payment schedule. Owners expect negotiation, especially for yearly contracts. The best time to negotiate is during low season (November to March) when demand is lower. Be reasonable and specific about what you want changed.
Your contract remains valid with the new owner. Indonesian law protects existing tenants. However, make sure your contract explicitly states that it transfers to any new owner. If the sale happens during your lease, you should receive written confirmation from the new owner acknowledging your contract.
Always pay by bank transfer. This creates a paper trail and proof of payment. Cash payments are harder to dispute. If the owner insists on cash, get a signed receipt with the date, amount, and purpose. Keep all receipts in digital backup (photo or scan).
Ask to see the property certificate (SHM or SHGB) and match the name to the owner's KTP. If the property is managed by someone other than the owner, ask for a power of attorney (surat kuasa) authorizing them to rent it. On Property Plaza, owner verification is handled before listings go live.
The most common scam is someone posing as the owner of a villa they do not own or control. They collect a deposit and disappear. Protect yourself by verifying property documents, meeting the owner at the villa, and never transferring money before signing a contract. Using a verified platform like Property Plaza eliminates this risk because all owners are checked.
Property Plaza verifies every listing and takes no commission — see how listings are verified or how it works.