
2026-09-20 · 9 min read
Najat Brahim
Founder, Noha Ventures · 2026-09-20 · 9 min read
Key facts
Comparable operating villas in Kuta ran approximately 78% annual occupancy in 2024, a market benchmark based on comparable villa data, not a promise for unbuilt units.
Typical nightly rates: €90 to €200. Lower end for smaller 1-bedroom units; upper end for larger 2-bedroom villas or hillside villas with a view.
Projected net yield of 10 to 14% per year, based on 70% occupancy assumptions (conservative vs the 78% benchmark). Yields are projected, not guaranteed.
The honest answer up front. Comparable villas in Kuta, South Lombok, run around 78% annual occupancy at €90 to €200 per night depending on villa type and season, based on 2024 to 2025 short-term-rental data. Real net yield after operating costs, the 20% management fee, and 11% Indonesian tax on rental profit lands in a narrower range than most developer brochures show. This article walks through the numbers openly. If you want to run your own scenario, use our ROI calculator.
Gross vs net, and why it matters. A developer quoting a 15% yield is almost always quoting gross rental revenue divided by villa price. That number ignores everything, cleaning, utilities, management, taxes. Real net yield is what actually reaches your bank account after every operating cost and after tax. It's smaller than the gross figure, usually by a factor of 2 or more. Any brochure that quotes yield without saying "net" or "after 20% management, 11% tax and operating costs" is quoting gross.
Occupancy: what Kuta actually runs. Airbtics, BPS NTB (West Nusa Tenggara Statistics), and the Lombok Tourism Board publish short-term-rental and hotel occupancy data. For South Lombok villas, the 5-year trend runs 48% in 2019, dropped to 22% during 2020 to 2021, recovered to 52% in 2021, 61% in 2022, 70% in 2023, and 78% in 2024. Our calculator defaults to 70% as a conservative assumption. 78% is the recent Kuta comparable, not a projection.
Nightly rate reality. Peak season (July to September, December to January) runs €130 to €200 per night for a 2BR villa with a private pool. Shoulder season (April to June, October) runs €100 to €140. Low season (February to March) runs €80 to €110. 1BR villas run about 25 to 30% below these figures. Averaging across the year, a 2BR typically achieves €130 to €150 blended rate. This is comparable data, individual villa performance depends heavily on photography, positioning and reviews.
Operating costs marketing decks skip. The bills that come out of gross revenue before you see a euro. Cleaning per stay, roughly €25 to €40 per changeover. Laundry, similar. Pool cleaning and garden maintenance, together roughly €100 to €150 per month. Utilities (electricity, water, WiFi), €80 to €150 per month depending on AC usage. Annual PBB property tax, a few hundred euros. Small repairs, budget €500 to €1,000 per year. PT PMA accountant, paid separately by the owner. Amenities and consumables (coffee, guest kit), €30 to €50 per stay. None of this comes out of the 20% management fee, all of it is pass-through.
The 11% Indonesian tax on net profit. The PT PMA that owns the villa pays 11% corporate tax on rental net profit (after operating costs and management fee). This is not optional. Nayat's calculator applies it automatically. Most developer decks either omit the tax or quote pre-tax yield, both are misleading.
The 20% management fee. We partner with a local management agency. They handle listings, dynamic pricing, guest ops (check-in, check-out, 24/7 support), coordinate the cleaning and maintenance vendors, and deliver monthly investor reports. Fee: 20% of gross rental revenue. Owners are free to appoint a different agency, nothing ties you to our partner.
Case study 1: 1BR villa at €148,000. Assume 70% occupancy, €95 blended nightly rate. Gross annual revenue: €95 × 365 × 0.70 = €24,275. Minus 20% management (€4,855) = €19,420. Minus operating costs, estimate €4,800 (cleaning, utilities, pool, repairs, PBB, accountant): €14,620. Minus 11% tax on €14,620: €13,012 net to owner. Payback on €148,000 villa: ~11.4 years. Net yield: ~8.8%.
Case study 2: 2BR villa at €235,000. Assume 70% occupancy, €140 blended nightly rate. Gross: €140 × 365 × 0.70 = €35,770. Minus 20% management (€7,154) = €28,616. Minus operating costs, estimate €6,000 (bigger villa, more utilities): €22,616. Minus 11% tax: €20,128 net to owner. Payback on €235,000: ~11.7 years. Net yield: ~8.6%.
Reconciling the case studies, the 10 to 14% projected range, and the calculator. The two numbers measure slightly different things and both are accurate. The '10 to 14% projected net' headline range assumes premium nightly rates (€140 to €200 for the 2BR) or the 78% market-benchmark occupancy, and measures net-after-management-and-tax (this matches our ROI calculator). The case studies above use conservative 70% occupancy and blended average nightly rates, and go one step further by subtracting €4,800 to €6,000 per year of operating costs (cleaning, utilities, pool, PBB, accountant), which is why they land at 8.6 to 8.8%. Practical rule: the calculator's yield minus roughly 2 to 3 percentage points is your true take-home after everything. Both numbers describe the same villa, just with different assumptions and different cost coverage.
Sensitivity: what if occupancy drops. If occupancy falls to 60% (Kuta 2022 baseline), the 2BR case above becomes ~€16,900 net, yield ~7.2%. If it falls to 50% (post-Covid worst), it becomes ~€13,000 net, yield ~5.5%. Yield is not guaranteed. The 78% number is a comparable benchmark, not a promise.
What can also change the numbers. Nightly rates soften if new supply lands faster than demand. New villa builds in Kuta have been accelerating post-Mandalika. On the other hand, airport expansion, F1 / MotoGP calendar, and the government's KEK tourism-zone investment push demand up. The honest posture: 70 to 78% occupancy at €100 to €140 average nightly is a defensible assumption for the next 2 to 3 years, and worth pressure-testing with an independent broker.
How to run your own numbers. Our ROI calculator uses the same 20% management fee and 11% tax deductions shown above, but excludes operating costs (~€400 to €500 per month) since those vary by owner setup. Change the nightly rate and occupancy to see how the yield moves; subtract ~2 to 3 percentage points from the calculator's output for true owner take-home. For the full financial model with sensitivity scenarios and comparable data, ask us for the investor deck on WhatsApp.

Founder, Noha Ventures
Najat leads Noha Ventures, a boutique villa developer in Kuta, South Lombok. She writes about how foreigners can buy, own and operate property in Indonesia.
Answers to what most readers ask after this article.
Comparable operating villas in Kuta ran approximately 78% annual occupancy in 2024. That is a market benchmark based on comparable villa data, not a promise for Noha's unbuilt units.
€90 to €200 nightly for well-managed boutique villas in Kuta. The lower end is for smaller 1-bedroom units; the top end is for larger 2-bedroom villas or hillside villas with a view.
Projected net yield of 10 to 14% per year, based on 70% occupancy assumptions (conservative vs the 78% market benchmark) and typical operating cost structures. Yields are projected, not guaranteed; actual results vary.
20% management fee, cleaning, utilities, maintenance reserve, PBB annual property tax, PT PMA accountant, depreciation on furniture, and 11% Indonesian corporate tax on the net. The 10 to 14% projected range is already net of all of those.
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