Our top tips on what to consider when signing a housing or villa rental agreement in Bali, Indonesia.
Sometimes you will be dealing directly with the landlord and other times you will be dealing with a property agent. Property agents normally take a % fee of up to 10% Rents are more often than not paid 12 months in advance therefore it’s important to have your property rental agreement well stitched up so you can claim against the landlord in the event something is not right.
When reviewing a home rental contract, here are some important things to look out for:
1. Lease term and renewal options: Check the length of the rental/lease and whether there are any renewal options available. Ensure that the terms are acceptable to you.
2. Rent and security deposit: Check the monthly rent and security deposit amount, payment due dates, and late payment penalties. Is there any discount offered for up-front payment or multiple years?
3. Check who will be liable for the rental taxes, you or the landlord?
4. Check that there is a comprehensive inventory, preferably with photos and conditions which are signed by both parties at the beginning of the lease.
5. Maintenance and repairs: Check who is responsible for the maintenance and repairs of the property. Such as Air Conditioning units and pumps. Ensure that the responsibilities are clearly defined.
6. Utilities and other expenses: Check which utilities and other expenses are included in the rent. Ensure that the terms are clear and acceptable to you.
7. Subleasing and guest policies: Check whether subleasing or hosting guests is allowed, and if so, under what conditions.
8. Termination and eviction: Check the circumstances under which the landlord can terminate the lease or evict you and under what terms you may terminate the lease agreement and be refunded. Ensure that the terms are fair and reasonable.
9. Alterations and improvements: Check whether you are allowed to make alterations or improvements to the property and under what conditions.
10. Pets: Check whether pets are allowed and whether there are any restrictions or additional fees associated with having pets.
11. Insurance: Check whether the landlord has insurance and what the coverage includes and what happens to you if the property become unliveable.
12. Legal disclosures: Check whether the landlord has disclosed all required information, such as lead paint disclosures or other hazardous conditions.
13. Review the land certificate /IMB to ensure the property is in the name of the landlord on the contract.
14. Your rental contract should be legalised within the jurisdiction of Indonesia and signed by both parties across the official stamp.
We always recommend that you physically check the property day and night and at different times and you also visit when there has been a heavy downfall of rain since this often gives you a clear perspective of any problems. We would also suggest you do a check on the mechanicals such as air conditioners and pumps as well as check the water pressure and water.
It's important to carefully review the rental contract and ask the landlord or property manager for clarification if you have any questions or concerns.
Bali Insight Living concierge service primarily focuses on retiring expatriates to Bali and as well as helping with them plan their move connecting them with bona fide, reliable, and professional third parties for banking, visas, and housing as well as introducing them to activities and clubs that match their interests.
The information set out above is information from the author and should not be considered final. Bali Insight Living does not accept any liability for the information provided above and recommends its clients to seek proper legal advice.