ROI rental villa ubud realistic numbers

Hello Sam. A 12% net ROI on a new-build villa near Ubud is possible in some cases, but it’s an optimistic projection rather than a reliable baseline. Owners need to account for seasonal occupancy, nightly rates, management fees, maintenance, staff, utilities, repairs, taxes, platform commissions, and periods without guests. Leasehold duration and the purchase price also have a major impact on returns. For a realistic assessment, I’d model three scenarios: conservative, base case, and optimistic. A villa might generate attractive gross revenue but deliver a much lower net return once all operating expenses are included. Before buying, verify actual occupancy and revenue records from comparable villas, calculate net operating income, and stress-test the numbers using lower occupancy and unexpected repair costs. The key question isn’t whether 12% is achievable, but whether it remains achievable under conservative assumptions and after every expense is included.