Mastering Bali Rental Property – Part 2
If you are reading this, you are probably the owner of a villa or other property in Bali, or you are looking into purchasing property here on the island. Last week we talked about 3 essential steps in becoming a master in Bali rental property. This is part 2 – we’ve got 3 more steps to go:
The Three M’s; Maintenance, Marketing & Management
The maintenance of your rental property is something essential anywhere, all around the world – as the owner, you are responsible. Property maintenance is part of your duty as the rightful owner of the investment and honestly, it for your own good! On a tropical island like Bali, where the climate is humid and hot, thoughtful preventive maintenance is tantamount to keeping the investment profitable. If you neglect this, you could lose your entire investment as your villa starts to break down in ways that are irreversible. Now you may think: maintaining the villa only costs me money instead of making me money but in reality, property in Bali not looked after properly will break down more quickly than, say an apartment in Sydney, because we’ve got all of the elements conspiring against the longevity of your investment.
What you need to do is find good contractors who can do repairs and take care of the maintenance of the villa on a regular basis. They need to be skilled and reliable. The best thing to do is to create a system to handle your maintenance from regular checks to emergency repairs. Schedule regular maintenance overhauls for once or twice a year by blocking the dates on your calendar to ensure that the next guests who come to stay and play enjoy your investment to the fullest, so that you do so also.
Marketing of Your Bali Property
Marketing/Hosting can run hand in hand if you have chosen to look after your own investment as the ‘manager’, or you can hand over the operations (of all 3 M’s) to one of Bali’s many bona fide property management companies. To turn your rental property into a successful investment, you need to take a real good look at your property. What are the key selling points? (location, price, unique features, staff & services, etc). The marketing of your villa is something incredibly important – the success of your property rental is dependent on it.
What’s important? Social media presence, professional video/photos of your property, a good website and booking system, it can approximate a full-time job, really! Especially at the beginning. Whereas simply providing a roof/bed/kitchen was all that was required a few short years ago to be successful in teh daily rental business, the User Experience has become a critical component to the reviews that drive your occupancy and increase your profit. How does the UX that you are offering stand out from the rest? Find what makes your story unique and then tell that story to the market.
Managing Your Tenants (for Long-Term Rentals)
Knowing and screening your tenants is incredibly important! Property maintenance is of key importance but screening your tenants is just as important. Most likely, your expertise lies in sourcing and investing in Bali property, not so much in finding suitable applicants to rent out your property to. You could face problems like not being paid rent on time (or at all), you may have to deal with vandalism of your property or a long eviction process. To avoid all this hassle, it might be wise to collaborate with a property manager. Someone experienced in this field of business, familiar with all of the problems that could arise. This saves you a whole lot of time (and money!) on trial and errors. The money you would be investing in a reliable, experienced property management company, earns itself right back. On top of that, it saves you a lot of stress, time and headaches.
More into short-term rental of your Bali property? A property manager is just as important, especially if you are not always around to deal with problems. Find a local villa manager you feel you can trust (this is where you will do the screening part) and from there, let him/her handle it!
The right investment in the bricks and mortar is just the beginning. If you are going to align yourself with one of Bali’s top villa management companies, then the hard work is done. Turn the key and let the experts do it all for you. If you plan to self-manage, welcome to the world of hosting holiday makers in Bali. The progression of the process from sourcing the right photographer, creating an eye-catching description of the villa, being on hand for the meet and greet at check-in time, look for several ways of “upping” the UX as your guests’ reviews become the life blood of your investment. The more that you invest, the more willing your guests will be to take the extra few minutes to write a very positive review which will in turn create more business for you and your investment.