Lombok Local · Property buyer guide
Villa Rental ROI in Lombok: Costs, Income and Returns
Learn how to calculate gross villa revenue, operating yield, downside scenarios and the impact of leasehold expiry in Lombok.
From research to real opportunities
Looking to buy or invest in Lombok?
Explore our current villas and investment properties for sale, then ask our local team for the information you need before taking the next step.
Quick answer: Revenue is average achieved room rate multiplied by paid occupied nights. Operating yield is operating surplus divided by total invested capital. Neither tells the entire story for a lease with a finite term.
A transparent, hypothetical example
With an all-in purchase and setup cost of €250,000, an average paid rate of €150 and 55% occupancy, annual gross room revenue is about €30,113. At 40% operating costs, operating surplus is around €18,068, a 7.23% illustrative operating yield.
These numbers are not a Lombok market forecast and exclude financing, taxes, significant capital expenditure, lease renewal and selling costs.
Downside test
At €125 per paid night and 40% occupancy, gross revenue is €18,250. With 45% operating costs, operating surplus is approximately €10,038, or 4.02% on €250,000.
Documents to request
Obtain booking and settlement reports, payroll, utilities, cleaning, platform charges, pool maintenance, insurance and repairs. Distinguish advertised occupancy from real paid bookings.
Model the lease clock
For a leasehold acquisition, calculate cash flow over the legally remaining years, include renewal scenarios only when contractually supportable and avoid assuming a guaranteed exit price.
Official information and further reading
- Indonesia Basic Agrarian Law
- Official OSS business licensing
- ATR/BPN land administration
- BMKG natural hazard information
Explore more buyer guides
Looking for a villa? Contact Lombok Local about a viewing. Independent legal, technical and financial verification remains essential.
Information only; not legal, tax, immigration or investment advice. Property availability and rental returns are not guaranteed.
This is general property information, not legal, financial or tax advice. Have qualified independent Indonesian advisers review the actual transaction.
Frequently asked questions
Can I rely on a listing or brochure alone?
No. Verify the specific legal documents, building condition and financial assumptions with independent qualified professionals.
Can foreign buyers assume tourist rental is allowed?
No. Accommodation operation, use rights and licensing must be assessed for the exact property and operator.
Does this guide replace Indonesian legal advice?
No. Property rights, taxes and permits are specific to the transaction and may change.
Your local property connection
Ready to explore villas for sale in Lombok?
Browse current villas and investment opportunities, or contact our local team about a specific property. All listings and legal claims must be independently verified before committing.
