No public dataset establishes one official net yield for a Bali villa. A well-supported base case may land in the mid-single digits, sometimes above or below it, but the result depends on the exact location, bedroom count, price, tenure, operating model and cost base. Any quoted range still requires a project-level calculation.
Gross revenue is only the first line
Commercial market providers report booking or host revenue before many owner expenses. Their figures can help describe supply, occupancy and pricing, but they do not show what a particular owner keeps. A brochure that presents gross booking revenue as "net ROI" has skipped the decision-critical part of the model.
Use this formula consistently:
net operating yield = net operating income before financing and owner income tax ÷ total cash invested
The denominator must include every amount needed to make the villa lawful and ready to trade. Leaving out the lease premium, fit-out, professional fees, working capital or opening costs can make the yield look better without changing the villa's economics.
An illustrative cascade from 100 of booking revenue
The following example is a teaching case, not a Bali average or a forecast:
| Line | Illustrative amount |
|---|---|
| Gross booking revenue | 100 |
| Distribution and payment costs | −15 |
| Management and payroll | −18 |
| Utilities, housekeeping, pool, garden, repairs and consumables | −14 |
| Local levies, compliance and administration | −5 |
| Replacement reserve | −4 |
| Net operating income before financing and owner income tax | 44 |
If gross booking revenue equals 15% of total invested cost, this illustration produces a 6.6% net operating yield before financing and owner income tax. If gross revenue equals 12% of invested cost, the same cost structure produces about 5.3%. Neither result is a promise. Change the occupancy, nightly rate, fee agreement, staffing plan or construction cost and the answer changes immediately.
Land appreciation, resale proceeds and lease-extension assumptions are excluded. They may matter to the total investment return, but they should not be folded into an annual rental-yield percentage.
Use villa-specific comparables
Island-wide figures combine hotels, rooms, apartments, private villas, different bedroom counts and very different operating standards. Hotel occupancy by area can help show seasonality and submarket differences, but it is not a villa comparable set. A useful model narrows the evidence to:
- the same neighbourhood or a defensible competing area;
- a similar number of bedrooms and guest capacity;
- comparable privacy, facilities, design quality and service;
- the same stay pattern, such as short holidays, monthly stays or owner use;
- a documented total investment cost and lease term;
- an operating plan that names who prices, sells, collects, staffs and maintains the villa.
Vacancy should be reflected in the occupancy and revenue assumptions. Do not deduct it twice as a second expense. Financing should also be kept separate so that the property can be compared independently of each investor's loan terms.
Costs that often disappear from the brochure
Platform and payment fees are only the beginning. The model should also include wages, mandatory holiday allowance, employer social-security contributions, utilities, laundry, pool and garden care, preventive maintenance, repairs, insurance where available, licences, accounting, local taxes, professional fees and a reserve for replacement of furniture and equipment.
The wage and contribution lines should be checked against current official records. The BPS Bali portal publishes regional labour statistics, the Bali legal-information portal carries provincial instruments, and BPJS Ketenagakerjaan publishes employer social-security information. The applicable amount depends on the location, worker status and current rules.
How to read our Harmonie figures
Our internal management records show 82.26% portfolio occupancy for Harmonie in April 2026. The internal 2026 rental-revenue planning range is published only as an index of 124–140 against a 2025 baseline of 100; exact turnover remains confidential and is shared only during a qualified consultation. These internal, unaudited figures come from a small, actively managed collection. Their scope is too narrow to serve as an island-wide benchmark or establish a return for another project.
Their purpose is narrower: they show why design, configuration, distribution and daily operations must be modelled together. The operating choices are described in our Harmonie note. In a project discussion, the underlying revenue and cost lines should be reviewed with the investment basis, not shown as a stand-alone occupancy claim.
Eight questions for any promised yield
- Is the percentage gross, net operating, after financing or after income tax?
- What exact cost sits in the denominator?
- Which occupancy, nightly rate and seasonality assumptions create the revenue?
- Are platform, payment, management and payroll costs all included?
- Who bears local taxes, utilities, repairs and compliance costs?
- What reserve is funded for furniture, equipment and major repairs?
- Is the result supported by a comparable set or by an island-wide average?
- Who owes any "guaranteed" amount, under which contract and with what security?
The final question changes the analysis. A guaranteed return is a claim against a counterparty, not proof that the villa itself can produce that yield. Review it separately in our note on guaranteed returns and contractual repurchase promises.
A number worth comparing
For comparisons, use net operating yield before financing and owner income tax, with the same deductions and the same denominator for every project. Then show debt service, company tax, personal tax and exit value separately. That structure is less dramatic than a brochure percentage, but it lets an investor see what the property produces and what belongs to the financing or ownership structure.
Updated: 17 July 2026.
Related: Is Bali still a good villa investment in 2026? · How to legally rent a villa short-term
Sources checked 17 July 2026: BPS Bali for official tourism and labour statistics; Bali provincial legal-information portal for current provincial instruments; BPJS Ketenagakerjaan for employer contribution guidance; AirDNA and hospitality reports as commercial, third-party market context. Commercial methodologies and Harmonie's internal figures have not been validated by an Indonesian public authority. Recheck each moving figure and the complete project cost stack before relying on a result.