As an illustration, of every USD 100 a villa earns, booking platforms take about USD 18, staff and service about USD 22, utilities and upkeep about USD 12, and hospitality tax and admin about USD 10. With a management company taking roughly another USD 20, the owner keeps about USD 18; running it yourself, closer to USD 38. Illustrative — not financial advice.
Where does each USD 100 go?
Here is an illustrative year for a villa, comparing one run by a management company with one the owner runs directly:
| Where it goes | Managed | Self-run |
|---|---|---|
| Booking platform fees | 18 | 18 |
| On-site staff & service | 22 | 22 |
| Utilities, repairs, upkeep | 12 | 12 |
| Hospitality tax & admin | 10 | 10 |
| Management company fee | 20 | — |
| Left for the owner | 18 | 38 |
So a villa taking USD 100,000 a year would leave its owner about USD 18,000 if managed, or about USD 38,000 if self-run. Illustrative — not financial advice.
Why is staff the biggest cost?
Because a villa is a service business. Housekeeping, a villa manager, security, gardeners and pool care come to around a fifth to a quarter of income at full service. It is also the last place to cut: guests notice thin service, say so in reviews, and that costs bookings.
How much do the booking platforms take, and can you reduce it?
Platforms take 15–25% of each booking they bring. In the first year most bookings come through them, so this is the biggest cost you can actually influence. Winning repeat guests and direct bookings is how that line shrinks over time.
What does a management company charge?
Usually 15–30% of income. That is fair for full service, but know exactly what is included — marketing, maintenance, accounting, staff hiring. Running it yourself keeps that money but moves the work and the risk to you. See what to ask an operator.
Which costs creep up, and what about tax?
Power, water, internet and repairs rise quietly, and in Bali’s climate pools, air conditioning and soft furnishings age fast. Budget for upkeep every month, not when something breaks.
A 10% regional hospitality tax, known as PB1, sits on the guest’s bill — check whether the rates you compare against include it. Income tax depends on how the villa is owned; settle it with an accountant before opening. To see how these costs turn a headline yield into a net one, read gross versus net yield.
Sources: Ascendure analysis of Bali villa operating data; ranges are illustrative. General information about the Indonesian market, not legal, tax or financial advice.
The full method: What Your Operator Isn’t Telling You
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