Whilst many people dream of owning and running their own business, only a tiny minority of them would ever consider doing so in another country, but that is exactly the opportunity that owning and renting one or more Bali villas offer. In its simplest terms, this business involves you owning or having a share in luxury villas in Bali and renting them out to holidaymakers, business travellers, and those wishing to live in Bali for prolonged periods.
Whilst we trust that seems like a relatively simple model, it is not without its pros and cons, and that means if you wish to consider starting such a business, there is a right way and a wrong way to proceed. We wish to focus on the right way to start a Bali villas business, so below we have outlined some tried and tested best practices.
Familiarise Yourself With Local Business Legislation And Regulations
Beyond studying the business models of owning and renting out Bali villas to satisfy yourself that is one you are keen to pursue, you need to be fully aware that you are going to be doing business in another country. As such the laws and regulations relating to owning and running businesses will differ from your home country. In particular, laws relating to foreign nationals owning a business and property will differ.
The country whose laws you must pay attention to, and follow, is Indonesia, therefore, one of the first steps you should take is to learn as much as you can about Indonesian business laws as they apply to yourself. Better still, seek the help and guidance of a local business consultant or commercial lawyer to ensure that you start your business in compliance with the applicable business ownership laws.
Create A Sound Business Plan
The concept of creating a solid and workable business plan will apply no matter what kind of business you start, but given you may never have owned and rented property before, and that you are going to be doing so in another country, it is absolutely essential for your Bali villas business.
There are many variables that you must consider and include in your business plan including those below.
- One or more than one villa?
- Owning/Leasing/Franchise?
- Size of the villa(s)?
- Which location(s)?
- Self-managed or employ a property management service?
- Rental lengths – Short-term/ Long term?
- Rental amounts?
- Marketing e.g. Website, advertising
- Local taxes/fees
Within each of these, there will be further considerations and decisions to be made. For example, with rental lengths, you need to decide if you are only going to rent out to holidaymakers who want one or two-week rental periods, whether you will accept shorter rental periods, such as a weekend only, or if you will allow your villa to be rented for longer periods by someone who wishes to spend 6 months living in Bali, for example.
These decisions, and many others, all must form your business plan so that from day one you, and those supporting you, know exactly how the business is going to develop, and ultimately operate.
Research The Competition
One of the best ways to ensure that your Bali villas business gets off to a successful start is to research the local competition. This is not so that you copy them exactly, but rather ascertain how they operate, what best practices they follow, how they market themselves and what they do to ensure that clients who use them, do so again whenever they wish to visit Bali and rent a villa.
