For anyone planning to follow the Bali villas rental business model, we hope you are aware that there is a lot more to getting started than simply obtaining a dream luxury villa and then renting it out to tourists. Unfortunately, the law which pertains to Bali, which is Indonesian law, can be a bit of a minefield when it comes to foreigners buying property or starting a business.
If you have not done any research on Indonesian law relating to property and business, then we suggest you do so quickly. Better still, we highly recommend that you acquire the services of lawyers who practice in these areas of the Indonesian legal system. The truth is if you are going to run a business within the Ball villas rental model, you must do so legally, and in full knowledge of the applicable regulations. Otherwise, you may make one of several legal mistakes outlined below.
The simple fact is Indonesian law forbids foreigners from owning property outright, which means if you were to purchase a property freehold you would be participating in an illegal transaction. To operate a Ball villas business, you must either lease the land or lease the villa, and even with these transactions, it is essential that use a reputable estate agent or notary to ensure that everything is being done lawfully.