Villa Management in Canggu
Key takeaways
- Canggu, Berawa and Pererenan sits in Badung Regency, so the accommodation tax is administered by the Badan Pendapatan Daerah Kabupaten Badung.
- The local operating constraint here is new supply, and it changes the cost side rather than the fee.
- A substantial month-plus remote-working population makes the one-month accommodation tax line a live question here rather than a footnote.
- Nothing on this page ranks or recommends a company. We are paid the same fixed amount per enquiry either way.
More new villa stock has landed here than anywhere else on this site. That is the fact that explains most of what owners find confusing about their Canggu numbers.
How to read the numbers on this page. A figure with no marker is quoted from a primary source and linked at the foot of the page. reported means the company that charges it publishes no public rate card, so the range comes from trade reporting rather than from the charging party. modelled means it came out of the model set out on the methodology page, which you can disagree with line by line.
Which administration taxes the villa
Canggu sits in the same regency as Seminyak, which surprises owners who think of them as different worlds. Same ceiling, same revenue office, same filing routine. What differs is everything downstream of the tax: the guest, the stay length, the supply curve and the traffic. If a company tells you Canggu needs a different tax approach from Seminyak, ask them to point at the regulation.
UU No. 1 Tahun 2022 Pasal 58 ayat (1) caps the accommodation tax at 10% and leaves each regency and city to set the rate in force by local regulation, so the ceiling is national and the collector is not. The tax stack in full.
New supply
The Berawa and Pererenan corridors have absorbed more new villa inventory in the last decade than any other sub-market on this site, and new inventory competes on photography and price before it competes on anything else. An owner whose rate has been flat for three years while occupancy slipped is not necessarily being managed badly. They may be in a sub-market that has doubled its rooms while demand grew by less, which is a market condition rather than a management failure — and telling the two apart is the single most useful thing a Canggu owner can do.
What that does to the cost side
| Cost driver | What it means here |
|---|---|
| Traffic and transfer time | Staff commuting, maintenance callouts and laundry collection all take longer here than distance implies. It lands in the maintenance line rather than in the management fee, which is why it is easy to miss. |
| Rate pressure from new stock | New inventory competes on price first. A manager holding rate in a softening sub-market is doing something harder than one raising it in a tightening one, and a statement showing revenue alone cannot tell you which you have. |
| Long-stay mix | A month-plus booking falls outside the accommodation tax and outside most of the turnover cost at the same time. Modelled properly it is often better business than the headline rate suggests. |
Stay length, and the one-month line
Canggu has the largest month-plus population of the three coastal areas on this site, and that makes a line in Indonesian law relevant here that is academic in Seminyak. The explanatory memorandum to Pasal 54 ayat (1) of UU No. 1 Tahun 2022 provides that a private residence let as accommodation for more than one month is not an object of the accommodation tax. A six-week booking from someone working remotely is therefore a structurally different product from six separate weekends, even at the same total revenue — different tax, far fewer changeovers, and a management job that shrinks. It is worth modelling rather than treating as a discount you grudgingly accept.
On the modelled midpoint of USD 5,800 a month the accommodation tax line is USD 580; on a let running over a month it is nothing, and the modelled net moves from USD 1,868 to USD 2,075 before anything else in the arrangement changes. Several other things do change with it, and they are worked through on long-term letting against nightly.
The walk, on the modelled figures
For a three-bedroom villa with a private pool, the model puts gross booking revenue at USD 3,200 to USD 8,400 a month, with occupancy modelled at 50–75%. Both are modelled rather than measured.
| Line | Amount |
|---|---|
| What the guest pays | USD 5,800 |
| Accommodation tax (PBJT)Charged on what the guest pays. Not applicable to a let of more than one month. | −USD 580 |
| Booking revenue | USD 5,220 |
| Platform commissionWeighted across the channel mix at 14.2%. | −USD 742 |
| Management commission20% of booking revenue — charged on the booking, not on what is left after the platform. | −USD 1,044 |
| Channel manager and payment processing | −USD 104 |
| Housekeeping, laundry and grounds | −USD 522 |
| Markup on services bought for youZero if the contract says these are rebilled at cost. | −USD 52 |
| Transfer from the managerWhat lands in your account. Everything below this line happens outside their statement. | USD 2,755 |
| Utilities, repairs and replacement | −USD 365 |
| Final income tax on the rent10% of the gross rent, not of the profit. | −USD 522 |
| Reaches the owner | USD 1,868 |
| Share of the guest’s money that does not | 68% |
The line to look hardest at in Canggu is maintenance. Traffic here has made callouts slower than the map suggests, and labor that travels is labor that is billed for traveling. A maintenance figure that looks high for the work done is often a transport figure wearing a maintenance label, and it is worth asking for it broken out.
Run the same villa loosely — services rebilled with a markup, the upper end of every band — and USD 863 reaches the owner instead of USD 1,868. That gap of USD 1,005 a month is wider than the spread between any two published rates in this market, and it turns on contract wording rather than on percentages. Which clauses.
Choosing a company here
The most crowded and least differentiated management market on the island, and the one where scale is most often mistaken for local knowledge.
Ask how many villas a company runs in your sub-area, not across Bali. A company with two hundred properties and three in Pererenan does not know your street, your access road, or which of the local suppliers turns up. In a market this fragmented, the fifteen-minute radius is the only number worth asking for.
The five questions worth asking are the same everywhere and none of them is about the rate. They are on the hub page.
The other areas
- Seminyak, Petitenget and Kerobokan — Badung Regency, competition from hotels
- Uluwatu, Bingin and Pecatu — Badung Regency, water and utilities on the bukit
- Ubud and the Gianyar hinterland — Gianyar Regency, a world heritage cultural landscape
- Sanur and Denpasar — Denpasar City, a special economic zone written into a government regulation
Questions about Canggu
My Canggu villa's occupancy has dropped. Is that my manager?
It might not be. Canggu has absorbed a lot of new inventory, and a villa holding flat occupancy in a sub-market that has grown its supply is outperforming rather than failing. Ask for nights sold and achieved rate by month for two years. If rate held and nights fell, the market moved. If rate fell and nights held, your manager is buying occupancy with your margin, and that is a conversation.
Is a long-stay booking worth taking at a lower nightly rate?
Often, and more often than owners assume. It sheds the accommodation tax, it sheds most of the changeover cost, and it usually sheds the platform commission too because long stays are rarely booked the same way. Run it through the estimator with the actual monthly figure rather than comparing nightly rates, because comparing nightly rates is comparing the wrong thing.
Everyone quotes me a different occupancy for Berawa. Who is right?
Probably nobody, and the disagreement is the useful information. Occupancy varies street by street here in a way it does not in a mature sub-market, because the inventory is new and unevenly distributed. Treat any single occupancy figure for Canggu as a conversation opener and ask what sample it came from.
Should I renovate to compete with the new villas?
This site cannot answer that without your numbers, but it can reframe it: the new villas are not beating you on the building, they are beating you on the photographs and the review count. Professional photography is a fraction of a renovation and it moves the same lever. Try the cheap version first.
Sources cited on this page
- Airbnb — Service fees (host service fee percentages)
- UU No. 1 Tahun 2022 (HKPD) — Pasal 54, Pasal 58
- PP No. 34 Tahun 2017 — income tax on land and building rental
- Perda Provinsi Bali No. 6 Tahun 2023 — foreign tourist levy
- Villa Management Bali — published pricing plans
- Balitecture — published villa management rate
Every figure above was read from the source it is attributed to on 20 September 2026. How we check this.