Having a beautiful Bali villas in Seminyak can provide you with more than just a lovely spot to spend your summers and holidays. Especially as Seminyak is one of the main tourist hub in Bali—lined with popular beaches and dotted with stellar restaurants, boutique shops, cafes, and pura.
Investing in a vacation rental in Seminyak can also help you enhance your monthly income flow, diversify your investment portfolio, and qualify for a number of tax breaks. Unfortunately, novice and seasoned investors alike tend to overlook a few vacation rental investment property fees. Having a villa in Seminyak—or any other areas in Bali—is not always profit and flowers. Here are seven hidden fees of running a vacation rental that no one tell you about.
Increased Utility Bills for Your Bali Villas Seminyak
If you buy a vacation property in a hotter environment, such as Bali, you could end up paying up to 25% more on power bills. Unfortunately, because the guests do not have to pay for utilities, they prefer to leave lights on while they are not in the room and turn down the air conditioning more than they would in their own houses.
The Cost of Landscape Care
Other regular maintenance charges to keep it ready for each guest may be incurred. This could include garden and landscaping care, pool or hot tub service, and so on. You will need to hire a small local landscaping business to mow the lawns and clean the outside areas of the villa Seminyak on a regular basis.
Professional Property Management
Another cost to consider is hiring or relying on a professional property management or rental management firm. They can take a lot of your burden, from bookings, cleanings, to other managerial issues. However, professional property manager usually charge a percentage of each booking.
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The Cost of Marketing Effort to Promote Your Bali Villas Seminyak
If you want your Seminyak villas to be successful, you need devote a significant portion of your vacation rental property budget to marketing. Summer vacation house rentals are becoming more popular, which means more competition. List your home on as many websites as possible, place an ad in the local newspaper, and increase your social media presence! Whatever it takes to set your property apart from the competition.
In the age of social media, you might also need to allocate budgets for social media ads and probably influencers to promote your Seminyak private villa Bali. Today many travelers find their dream vacation rental through social media, so you need to catch up.
Hiring A Photographer
If your budget allows, hiring a professional photographer to capture the interior and exterior of your home is also a good idea. Professional images increase the likelihood of a property selling for more than its asking price by 35%. The point is that the more eyes on your vacation rental, the more likely it is to be rented.
The Taxes and Fees
In contrast to traditional passive income homes, holiday rental properties do not allow tenants to pay for their own utilities. Utilities, such as gas, power, trash, water, and wifi, will add up. While you can include these costs in the rent you charge, if you want to stay competitive, you should keep your fees as low as possible. You should also consider the expense of hiring an accountant. While this charge isn’t required, it’s a good idea, especially if you’re new to investing.
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The Insurance Cost for Your Seminyak Villas
While seaside homes and beautiful mountain cottages are extremely popular among vacationers, they can also be dangerous (in the eyes of a lender). The cost of insurance can build up quickly in the event of natural disasters such as hurricanes, mudslides, and other natural disasters. You should also include liability insurance in case any of your visitors damage your property or injure themselves while on your premises. Certain online providers, such as AirBnB or VRBO, provide some insurance, but don’t expect them to cover everything. Do your homework and choose a plan that suits you and your requirements.