What yield does a Bali villa actually produce?

The advertised number and the real one

Island-wide, occupancy averages around 64–66% with an ADR near USD 90–95. A typical two-bedroom villa grosses roughly USD 20,000–22,700 a year.

Prime, well-managed villas reach 70–85% occupancy. Generic Canggu stock tracks 38–55%, and supply grew around 29% in 2025, which is compressing rates.

Operating costs consume 40–50% of gross on a short-term rental villa.

Where the gross goes

• Management: 12–25% of revenue depending on tier. Full-service including staff can reach 35%.
• OTA commission: Airbnb's host-only fee sits around 15.5% since October 2025. Charged separately, on top of management.
• Staff: villa staff, pool, garden. Continuous, not seasonal.
• Utilities, maintenance, replacements, and a sinking fund you will need whether or not you budgeted one.
• Tax: 10% final for a resident individual, plus 10% PB1 regional accommodation tax.

Run that through and 8–15% gross becomes 4–6% net on average stock, 8–13% on genuinely prime and well-run.

Leasehold amortisation

The number almost nobody subtracts. If you paid USD 300,000 for a 25-year lease, you are consuming USD 12,000 of capital every year. A "7% net yield" on that villa is not 7%.

Freehold-equivalent structures appreciate. A lease runs down. Both can be good investments — but only one of them can be modelled as if the asset still exists at the end.

Licensing, which is now the binding constraint

To rent legally you need an NIB, a villa licence under KBLI 55193 via a PT PMA, plus PBG and SLF.

Pondok Wisata (KBLI 55130) is restricted to Indonesian citizens. It is not available to you, whatever an agent says.

Under UU 18/2025, every short-term rental listed on a booking platform must be licensed by 31 March 2026 or face delisting.

Guaranteed returns

Treat any "guaranteed 15% ROI" villa scheme as a claim requiring proof. The guarantee is only as good as the company behind it, those companies are typically thinly capitalised, and the guarantee period usually expires precisely when the building starts needing capital expenditure.

Ask for audited occupancy on existing units, not projections. If the answer is a brochure, you have your answer.

Underwrite on net, after tax, after management, after amortisation, at realistic occupancy rather than peak. If it still works, it is a real investment.