Renting a property in Indonesia? Here’s our quick guide! – If you are looking to rent a property in Indonesia you may be surprised by a number of factors that are unique to Indonesia. In this guide, Gary Joy gives his opinions on what to do when renting a property in Indonesia.
GJ: When most people move to Indonesia their first port of call and main priority is “where will I live”. In this guide I’ll give my hints and tips on what you need to know before you find your new home.
- Rental terms: In Indonesia, it is common to pay 12 months’ rent up front, plus the deposit. Most property owners will not be flexible on this. If you are lucky, you may find an owner willing to accept 6 months upfront, some may even go as low as 3 months; however, finding less than this is not that common. Contracts also tend to be of a 1-year lease, any less that this is quite improbable.
Note: Because of the depletion of foreigners in Bali due to Covid and the fact it is a holiday destination, property owners in Bali are a lot more flexible than those in Jakarta.
If you are looking for monthly rentals, check out Travelio or Air BnB – you may pay a slight premium because of the flexibility, although this is the easiest way to find monthly rentals. Alternatively, there are dozens of Facebook property groups in Bali, feel free to join some and keep an eye on what is available.
Additionally, you could try serviced apartments or compound houses managed by an agency, these are also more flexible.
- Renters market: Due to many factors, property prices have not been rapidly rising like those in the West, therefore, you are in a much stronger position than you would have been a few years ago.
You can negotiate approximately 10-20%, but unless you have evidence of something cheaper in similar condition, I wouldn’t recommend offering lower than this – it annoys the owners and they become less flexible moving forward. Indonesians are humble, yet proud people, if you make a ridiculously low offer, you may offend them, making successful negotiations significantly more challenging.
- House or apartment: This is purely down to preference and requirements. Houses will afford more space, are more flexible with pets, may come with a pool and overall provide more square metres for your money; whereas apartments have their own benefits, such as sports and leisure facilities, shops and laundry services onsite, plus they provide ease of living. An additional advantage is if you cannot speak Indonesian – it is much easier for online transportation or getting things delivered. Drivers will be more familiar with the location saving you lots of confusing conversations.
Most expatriates in big cities like Jakarta tend to opt for an apartment over a house, because of ease of living, but in Bali, most people choose to live in a house.
- Mosque noise: Unless you are in a non-Muslim populated area, there is a good chance a mosque is nearby. When viewing property, ensure you visit at prayer time to ensure the noise is bearable for your preferences.
- Check for property damage: When you move into your new home, make sure you check all the drawers, walls and furniture for damage. If you spot something, ensure you make your agent aware. If the owner is unaware and it isn’t fixed, they may well take the repair costs out of your deposit. Get evidence at the beginning and protect yourself.
- Traffic: Traffic in Indonesia is unavoidable. We don’t measure landmarks by distance, but by time. Before you move into your new home, check the travel time during your commuting hours. Some places may only be a mile away, but if it takes you 40 minutes, the distance is irrelevant.
- Finding a reliable agent: My advice would be to use a professional agency over an independent agent. It provides a level of certainty and avoids unnecessary risk.
Independent agents don’t have offices or fixed addresses you can find them at; therefore, you expose yourself to potential scams.
- Remember agents are helping for free: Agents get paid when they sell or rent. They are there to serve, but they are not your personal slaves. Building a relationship with your agent is a 2-way street, treat them with the same amount of respect you would like to receive from them. A happy agent is far more likely to go the extra mile for you over an unhappy agent.
You can check about the best area to rent your house or apertment here
