Management
Choosing a villa manager in Lombok: fees, contracts and red flags
In short: most villa managers in Indonesia charge 15% to 20% of rental revenue for full service, and up to 30% in some cases. The fee matters less than three other things: whether the villa is let under a valid licence, what costs are charged on top, and how transparent the monthly reporting is. A good manager pays for themselves through higher occupancy; a poor one costs you far more than their fee.
If you live abroad, your manager is the person who turns a villa into an investment. This guide explains what to expect, what to pay and what to check before you sign.
First, the licence question
Letting a villa to tourists night by night is an accommodation business in Indonesia, and it needs a business licence. This is the point foreign owners most often overlook, and it decides who can legally run your rental.
- Small homestay licences are for Indonesians only. The simple homestay category (pondok wisata) and some small-villa activity codes are reserved for Indonesian citizens, cooperatives and small businesses. A foreign owner, or a PT PMA, cannot hold them (Emerhub).
- Route 1: your own PT PMA. The company holds the land on HGB and an accommodation licence under a code open to foreign ownership, with a building permit (PBG), a certificate of occupancy (SLF) and local tax registration.
- Route 2: a licensed operator. A licensed Indonesian management company, or sometimes the landowner, lets the villa under its own licence while you keep ownership or the lease.
Authorities have increased checks on unlicensed accommodation, and listings without a verified business registration can be removed from booking platforms (Emerhub). Ask any manager, in writing, under which licence your villa will be let.
What a full-service manager does
- Revenue: listing on booking platforms, photography, pricing by season and event, guest communication, reviews.
- Operations: check-in, cleaning, laundry, pool and garden, consumables, security.
- Staff: recruiting, training and paying housekeepers, gardeners and night security, in line with Indonesian labour rules.
- Maintenance: routine upkeep, repairs, inspections, and an emergency plan for storms and power cuts.
- Compliance: collecting and paying the 10% local tourist tax (PBJT), keeping licences current, and providing the records you need for income tax. Booking platforms generally do not pay this tax for you in Indonesia.
- Reporting: a monthly owner statement with bookings, revenue, costs and receipts.
What it costs
Published figures for Indonesia cluster around the same range:
| Fee model | Typical level | How it works |
|---|---|---|
| Commission on revenue | 15% to 20% of rental revenue, sometimes up to 30% | The manager takes a share of each booking; you pay running costs |
| Fixed monthly fee | From about IDR 3 million (US$170) a month in Bali | You pay a flat fee; all revenue and all risk stay with you |
| Guaranteed rent | A fixed monthly payment to you | The manager takes the risk and keeps the upside |
Sources: Own Property Abroad, May 2026; Bukit Vista. Our rental income model assumes 20%.
The headline percentage is only part of the cost. Ask about:
- The base. Is the percentage taken on gross bookings, or after platform fees and tax? A 20% fee on gross can cost more than 25% on net.
- Onboarding fees for setup, photography and listing.
- Mark-ups on maintenance, supplies and linen.
- Early termination fees, which can run to several hundred dollars or more (Bukit Vista).
- Owner stays. Do you pay cleaning and staff costs when you use the villa?
Ten clauses to check in the contract
- Licence: whose licence the villa is let under, with its registration number.
- Fee base: exactly what the percentage is calculated on.
- Spending limit: a ceiling on repairs the manager can approve without you, for example US$300.
- Bank account: revenue paid into an account in your name or your company's, not the manager's, wherever possible.
- Reporting: monthly statements with receipts, and online access to the booking calendar.
- Pricing: minimum nightly rates, and your approval for discounts below them.
- Owner use: how and when you can block dates.
- Staff: who employs them, and who pays severance if the contract ends.
- Insurance: what the manager's liability insurance covers, and what yours must cover.
- Exit: notice period, handover of listings, reviews, guest data and keys, and no penalty after an initial term.
Red flags
- "We don't need a licence", or vagueness about whose licence is used.
- Revenue paid only to the manager's own account, with no access for you.
- Guaranteed returns that look too good, particularly when linked to buying a villa from the same company.
- No receipts, or statements that arrive late and change between months.
- Reviews that do not match what you see when you search the villa's listings yourself.
- Long lock-in periods with large exit fees.
Questions to ask in the first meeting
- How many villas do you manage in South Lombok, and can I speak to two owners?
- What occupancy and average nightly rate did comparable villas achieve last year?
- Which booking platforms do you use, and who owns the listings?
- Who will be my single point of contact, and how fast do you respond?
- What happens during a power cut, a flood or a medical emergency with a guest?
Our turnkey villas come with a licensed manager already in place, and we can introduce you to other licensed managers in South Lombok. Ask us on WhatsApp.
FAQ
Is 20% expensive?
Not if it covers full service and the manager fills the villa. Judge the net result, not the percentage.
Can I manage the villa myself from abroad?
You can oversee it, but you cannot work in Indonesia without the right permit, and the rental needs a licence. Most owners combine a local manager with close remote oversight.
Should I accept a guaranteed return?
Only if you understand who guarantees it, for how long and with what security. Compare it with the market-based model in our rental income guide.
How often should I visit?
At least once a year, ideally in the low season, to inspect the villa and plan maintenance.
This article is general information, not legal advice on licensing. Confirm the licence position for your villa with a notary or lawyer. See our investment disclaimer.