Short-Term Rental Returns in Lombok

Gross yield is annual rental revenue divided by the purchase price. It is the number most often advertised because it is the largest. Net yield is what you actually keep: gross revenue minus operating costs, divided by purchase price. The gap between the two is where many optimistic projections quietly fall apart. Always ask whether a quoted yield is gross or net, and what costs are assumed.

For a short-term rental in Kuta Lombok, the main recurring costs are:

• Platform / OTA fees — Booking.com and Airbnb commissions.
• Cleaning and turnover — per-stay, scales with bookings.
• Utilities — power (air-conditioning is significant), water, internet.
• Maintenance and pool care — tropical climates are demanding on buildings.
• Management fee — for professional operation, marketing and guest service.
• Taxes and insurance — confirm the local regime with an advisor.

Together these commonly absorb 30–50% of gross revenue, which is why a 13–22% gross yield often becomes roughly 4–8% net.

Two levers drive revenue: how many nights you sell (occupancy) and at what price (average daily rate). Kuta Lombok benefits from year-round surf and beach demand, with peaks around dry season and major events. Malasama's operating properties maintain occupancy above 75% with strong guest ratings, but demand is seasonal and tied to broader tourism trends. Professional management — pricing, listing quality, reviews — is what sustains both levers. See how fully managed villa investment works.

Consider a villa bought at €120,000 that achieves €20,000 in annual gross revenue — a 16.7% gross yield. If operating costs run 40% (€8,000), net income is €12,000, a 10% net yield in this illustration. Change occupancy or rate, or push costs to 50%, and the net figure moves materially. This is why you should stress-test any projection with lower occupancy and higher costs rather than accept a single headline number. Figures here are illustrative, not a forecast.

Rental yield is only half the return. Capital appreciation — industry-estimated at 10–20% annually in prime Kuta areas — can add a second, separate component to total return, realised only on sale and never guaranteed. For documented figures and sources, see the Lombok ROI data page.