In Bali there is a general opinion that real estate agents, selling and renting villas in Bali, are an unnecessary expense, because they are lazy, don’t do their job properly and they are only interested in the commission.
That might be the case for some real estate agents, but most real estate agents we know off, are hardworking and only interested in helping the seller finding the right buyer or tenant.
These 7 points are all relevant when you choose to work with a real estate agent.
There is definitely also a general misconception about how much a real estate agent receives in commission, when selling or renting a villa in Bali. Normally the real estate agent receives a 5% commission, when selling a villa or a land and a 10% commission, when renting out a villa for long term.
You might think ”WOW… that’s a lot of money” – and yes, it is potentially a lot of money, but it’s only a lot of money, if the real estate agent actually sold or rented out numerous of properties every month. However, this is rarely the scenario.
Being a real estate agent in Bali doesn’t necessarily make you rich!
If you run a professional agency in a certain size, like we do at Propertia Bali, then there are a lot of running expenses. Office space, employees, marketing costs etc. The list of expenses is unfortunately long, and it is expensive to run a real estate agency.
It’s also very important to mention, that customers don’t come to you “out of the blue”. It’s expensive to attract the right customers through a website or social media like Facebook or Instagram. The competition is tough between the agents in Bali, and because most listings are shared between 3-4 agents, you have to be professional, dedicated and take very good care of your customers.
So remember, when you are choosing your next agent to sell or rent out your villa in Bali, you should choose 3-4 good agents, who has the organisation to supply you with the customer service you expect.
Check their website, their organisation and meet with them and ask all the questions, that you might have regarding your sale or rental.
We hope that Propertia Bali will be on your checklist!
At Propertia Bali we often have customers asking “what is going on with the rental market in Bali?”
We have to agree with our customers. The market seems to be very inflated and has been the last few years. There are many factors influencing the rental market in Bali, but here are a few reasons, why we think the market is so inflated.
- Every year more than 6 million people are visiting this lovely island. A lot of them have hopes and dreams about creating a new life for themselves in Bali. They want to rent a beautiful home and live the dream life they planned. The first year most people living here long term, rent a villa to live out their dream.
- A lot of private persons are renting villas yearly and subletting them on a daily basis through mainly AirBNB. It’s a lovely way to make an income, but of course you always have to remember to follow the laws and regulations and have the right permits and registrations.
- It’s fantastic to see how local Balinese land owners are building new lovely villas to rent out on a yearly basis. However for these owners it’s normal practise, that their land certificate is with their bank, until they get the villa rented out. This is why, we see so many villas listed with a minimum rent of 3-5 years. Simply because they need to pay back the bank, for the villa they build, to get back their certificate. At Propertia Bali we often wonder who has that kind of money to put up front?
Will the market change anytime soon?
At Propertia Bali we don’t think so. A market changer, could be that the government is intensifying their search for illegally build villas and checking AirBNB hosts for rental villas.
Of course Covid19 has had a huge impact on the occupancy of the villas, but the owners are patient and they know the market will probably return in the last quarter of 2020. Owners are more willing to negotiate now but we haven’t seen a big drop in the rental prices, like many predicted.
In the end it’s all about supply and demand and Bali seems to become more and more popularly as a destination for tourists and people who want to live in create a new life in this beautiful island.
Where do you think the rental market will go?