Bali Rental Yield Explained: Gross Revenue, Costs and Net Return
HAVN's investor materials project a net return of 11% to 13% a year on an A$150,000 entry. That figure is indicative, not guaranteed. It rests on a few assumptions: the nightly rate, occupancy, operating costs, and the price paid. This guide shows how each one is built and how it can move the result.
What is the difference between gross and net rental yield?
Gross yield is rental revenue before any costs, divided by the price paid. Net yield is what remains after management fees, tax, and maintenance, divided by the same figure. Net yield is the number that matters to an owner, and it is always lower.
Two properties with the same gross revenue can produce very different net returns. The difference sits in the cost structure, so read the cost assumptions as closely as the revenue ones.
What assumptions sit behind HAVN's projection?
These are the inputs used in HAVN's investor materials. Each is an assumption about the future, not a recorded result.
| Assumption | Value used | Basis |
|---|---|---|
| Average nightly rate | A$110 to A$150 | Projected for a HAVN studio |
| Average occupancy | 68% to 75% | Pererenan wellness category average |
| Operating costs | 30% of gross | Management 18%, plus taxes and maintenance |
| Entry price modelled | A$150,000 | Within the A$140,000 to A$160,000 band |
| Rental rate growth | 3% a year | Applied from Year 2 |
How is gross rental revenue calculated?
Gross revenue is nights booked multiplied by the nightly rate. At A$125 a night and 70% occupancy, a studio is booked for about 255 of 365 nights, which produces roughly A$31,938. The investor materials round this to about A$32,000 a year.
The table below applies the same arithmetic across the assumed rate range and the 65% to 75% occupancy band cited for the area. It shows revenue before any costs and is an illustration of the calculation, not a forecast.
| Nightly rate | 65% occupancy | 70% occupancy | 75% occupancy |
|---|---|---|---|
| A$110 | A$26,098 | A$28,105 | A$30,113 |
| A$125 | A$29,656 | A$31,938 | A$34,219 |
| A$150 | A$35,588 | A$38,325 | A$41,063 |
What comes out of gross revenue?
Under HAVN's rental management programme, the management fee is 18% of gross rental revenue. Indonesian rental income tax (PPh) is 10% of gross revenue, withheld at source. Together that is 28% before maintenance, and the investor model allows 30% for operating costs in total.
Two further costs sit outside that figure. The HAVN service charge for the shared wellness facilities is still to be confirmed, and annual land and building tax (PBB) is around 0.1% to 0.5% of the assessed value. Ask for the current service charge estimate and include both in your own model.
Why measure return against your total acquisition cost?
The purchase price is not the full amount invested. Land acquisition tax (BPHTB) is 5% of the price, notary fees are 0.5% to 1%, and VAT on a new build is 11% to 12%. A return measured against the purchase price alone will look higher than a return measured against everything paid to complete the purchase.
Work out which base a projection uses before comparing it with another property or another market.
What can change the result?
Every input above can move. These are the factors most likely to move them.
- Nightly rates and occupancy, which depend on seasonality, competing supply, and guest reviews.
- Management performance, including pricing, listing quality, and upkeep.
- Personal use. Owners in the programme can stay up to two weeks a year, which reduces the nights available to rent.
- The final HAVN service charge, once confirmed.
- Currency movements. Income is earned in Bali and distributed quarterly in AUD.
- Tax in your home country. For Australian buyers, the Indonesia–Australia Double Tax Agreement applies, and individual treatment needs independent advice.
Common questions
- Is HAVN's rental return guaranteed?
- No. The 11% to 13% net return is a projection based on assumed nightly rates, occupancy, and costs. It is indicative, not guaranteed.
- How often is rental income paid to HAVN owners?
- Quarterly, in AUD, to a nominated Australian bank account, with quarterly revenue reports and annual financial statements.
- What is the rental management fee at HAVN?
- 18% of gross rental revenue. It covers listings, guest communication, check-in and check-out, housekeeping, linen, maintenance, dynamic pricing, and reviews.
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