Introduction
So, you have finally fulfilled your dream of owning a property in Bali. What’s next? For the days that you’re not staying on the island, wouldn’t it be nice if your property could make some money on the side? Well, who wouldn’t say yes to that? But then the question arises: how do you manage your property effectively and market it to attract the right audience while generating revenue?
If you’re asking yourself this question, I would suggest hiring a property manager. I know what you’re probably thinking — they charge hefty fees, and what if I don’t make enough money? It could be a big loss.
That’s why in this blog, I’ll discuss the benefits of hiring a property management company in Bali and the steps you should take to ensure you’re actually making money from your property.
So, whether you’re a seasoned investor or a first-time property owner, this blog will help you make an informed decision on how to manage your property.
The Bali Property Market: A Brief Overview
Let’s start with the very basics. First, let’s take a quick look at the Bali property market and its unique features.
? Bali has become a go-to vacation destination for tourists from around the world, which has led to steady growth in Bali’s real estate sector.
? The island attracts both local and international investors. While local investors can closely manage the day-to-day operations of their commercial properties and create a memorable experience for their guests, it’s not quite the same for international investors.
? And since a diverse group of people visits Bali every year, the commercial properties range from traditional villas to various modern apartments.
Now that we have a better understanding of the property market in Bali, let’s explore why hiring a property management company in Bali can be a game-changing strategy for you as a property owner.
Top 7 Benefits of Hiring a Property Management Company in Bali
- Maximizing Rental Income
It goes without saying that the primary reason any property owner would hire a property management company is to increase their overall rental income. While this is common knowledge, it’s also important to understand what to look for in the property manager you hire to ensure they can actually help you earn higher profits from your property.
a) Dynamic Pricing
Did you know that 93% of property owners suffer due to flat pricing? There is also a higher chance of being stuck with such lower profits if you choose to manage your property on your own, without seeking a property management company. These companies have an in-depth understanding of the local market. That’s why it’s better to list your property with a company that operates in a specific area and is well-connected to the local market, allowing it to better analyze current trends. Property management companies like AzureBali claim that they can increase your property earnings by 52% through dynamic pricing. You should definitely check them out. Plus, they can also help you compare your property with competitors in the area and set accurate prices to increase your occupancy and maximize your income. So yes, go ahead, and give it a try.
b) Marketing & Advertising
It is very important to get your property in front of your potential guests. This means that along with maintaining your property you also need to spend a considerable amount of money and time in creating a marketing strategy. And trust me, it’s not a walk in the park.
A property management company can help you with your marketing and advertising. Because they have the required infrastructure such as an in-house photographer to create professional listings with high-quality photos, an SEO team to write easily discoverable descriptions, and various marketing channels, including online platforms and local networks where they can position your commercial property. Along with this, they can also leverage their existing client base in Bali to help you reach out to suitable guests quickly through email marketing.
2 . Reducing Stress and Saving Time
As I mentioned before, managing a property in Bali as an international investor can be time-consuming. That’s why hiring a property management company becomes even more important if you are not living in Bali.
Since these companies can help you handle your guest, starting from their inquiries and the booking process to their stays.
They can also assist with regular maintenance and repairs at your commercial property so that it remains in top condition. You can monitor their services by requesting live images to verify that the cleaning and maintenance standards are being met.
Additionally, a property management company can be a lifesaver when it comes to handling emergency situations and dealing with paperwork and legal matters. So, all in all, by hiring a property management company in Bali you can make substantial profits without worrying about the burden of managing your property, in exchange for a small fee. Isn’t that a win-win?
3. Ensuring Property Security
Security threats are something that may have haunted you even before you decided to purchase a property in Bali. But you went ahead and bought a property anyway. However, the challenge still persists. So how do you plan to tackle it? By hiring a property management company. How will that help, you ask? Believe me when I say that your property needs thorough attention even when it’s unoccupied – You need to check for any signs of damage or break-ins and make sure all the security systems are working properly. To do this, you need to carry out routine inspections— and all of this becomes much easier with a property manager on board.
Not only that, a property management company can also help you conduct background checks on your guests and ensure they meet the specific criteria you have set as a property owner. In case of emergencies, such as severe accidents or incidents of vandalism, they can quickly coordinate with the local authorities and keep the situation under control.
4. Navigating Cultural and Language Barriers
As an international property owner in Bali, it is very difficult to understand the local customs and culture in-depth. You need to invest a lot of time to dive deep into how different local businesses work or else you will not be able to give your guests the experience they expect from a villa in Bali. A property management company can help you bridge the cultural gap in these 3 ways:
Local Knowledge and Expertise
Property managers in Bali have a deeper understanding of the local customs and traditions and therefore know the best ways to interact with the local communities. Thus, they can work to provide your guests with the most authentic experience during their stay in Bali.
Language Support
These companies hire professional staff who can speak both English and Bahasa Indonesia fluently thus they can communicate well with the guests understand their requirements and convey it to the junior staff members such as a room-service provider or a cleaner working on site. The company can also help you as a property manager to understand important documents and agreements with the legal authorities and much more.
Building Relationships
The local property management companies have very strong local connections and this can benefit you as a property owner. Management companies cultivate relationships with local businesses and service providers which means that they can negotiate better rates for maintenance and repairs and tap into local networks for marketing and tenant sourcing
5. Financial Management and Reporting
“You need to collect your rent on time to maintain consistent cash flow.” So, in short, you’re maintaining your property, marketing it to the right consumers, protecting it from security threats, collaborating with local vendors, and also managing to collect rent on time. Aren’t you a superhuman? Just kidding—since you’re not a superhuman, you can’t do all of this on your own, at least not while sitting hundreds or thousands of kilometers away from Bali. So, it’s better to hire a property management company in Bali to handle your finances. So the only task in your hand will be to ask for timely reports and collect your profits.
An efficient property management company can help you build a robust rent collection system, follow up on late payments, and handle security deposits responsibly. Along with this, they can also help you monitor utility expenses on electricity, waste management, internet & cable TV, CCTV and alarm system, HVAC maintenance, etc. on your commercial property in Bali and implement a cost-saving strategy that does not affect the service quality of your villa or property. And, like I said, you can ask the company to send out financial statements so that you have a clear idea of your financial health, the occupancy rate of your property, and regular updates on maintenance and repair expenses.
6. Enhancing Guest Experience
You don’t just want guests on your property; you want repeat guests. Why? Because it can cost you five times more to acquire new customers than to keep the current ones. So, it is always better to host repeat guests than to work hard to find new ones every time.
How do you achieve that? Make sure your guests are satisfied during their visits to your vacation rental. A professional management company can be useful in elevating the guest experience in different ways:
First impressions matter, and property management companies can create a good first impression by establishing smooth check-in and check-out procedures. They can assist you in providing transparent information about your commercial property, such as type of property (whether it is a villa, a resort, a condo, etc), number of bedrooms and bathrooms, proximity to key locations, parking, terms & conditions, the required deposit amount, security measures on the property, etc. to your guests, ensuring they receive the services as per their expectations.
Additionally, having a local team to assist guests can greatly enhance your guests’’ stay. Management companies can make this a reality by:
- Providing 24/7 support for guest inquiries and issues
- Offering local recommendations and travel advice
- Handling special requests and arrangements
A large pool of happy customers will not only help you secure repeat bookings, but they will also leave positive reviews about your property in Bali, attracting a wider range of guests and bringing your CAC (Customer Acquisition Cost) down to nil.
7. Adapting to Market Changes
The property market in Bali is ever-changing, and that is why you need a property management company to help you stay ahead. These companies can assist with market analysis and track trends in the rental market, such as the differences in demand for rental homes in pre-COVID and post-COVID times. They can also highlight the importance of being located in prime areas like Canggu, Seminyak, and Uluwatu, where demand consistently outpaces supply, as well as the rise in people looking for eco-friendly rentals, among other trends. Since it can be difficult to stay updated on all these aspects by oneself, it is always a wise decision to let the experts handle it.
Conclusion: Is Hiring a Property Management Company Right for You?
As we’ve already explored, there are numerous benefits to hiring a property management company in Bali, as they can help you increase your rental income and reduce the overall stress of managing the property. However, you should make the decision to hire a property manager based on your individual circumstances. Here are a few questions you can ask yourself to gain a clearer idea:
- How frequently do you want to be involved in day-to-day operations?
- What is the distance between where you live and your property in Bali? Do you live in a different country?
- Are you familiar with the local market and legal regulations on the island?
- How many hours are you willing to spend understanding the local market?
- How much money can you spend on managing your property in Bali?
Still confused?
Why not connect with AzureBali for a 10-minute demo call? They will help you find answers to all the questions above and more.
