Renting a property in Indonesia can often be a challenge for expats. Whilst there are many properties to choose from, there can be a lack of clear information and reliable / trustworthy real estate agents to guide expats through the complexities of the Indonesian rental market.
However, renting a property as an expat is often the most practical solution when relocating to Indonesia for a relatively short period of time. Besides renting being more affordable than buying a property in the short term, the requirements to rent a property are comparatively easier than adhering to the strict legal requirements for foreigners when buying a property.
If you are an expat looking to rent a property in Indonesia, here is some useful advice…
10 Top Tips for Renting Property in Indonesia
The Lets Move Group (LMG) is a trusted and AREBI certified Real Estate agency with 5 x offices across Bali and Jakarta. LMG works with expats to help them find the perfect property.
Miles Lampitt is the Marketing Manager of the Lets Move Group has provided some top tips to follow when you are an expat looking to find and rent a suitable property in Indonesia:
1. Choose the right location
Location a key consideration when securing a property. In major cities like Jakarta, traffic congestion can significantly impact daily life especially when commuting. Bali also has its own traffic problems; high density tourist areas like Canggu and Seminyak are often congested, although there are quieter, more peaceful locations to rent a property nearby such as Sanur.
You should also consider your lifestyle and work commitments when selecting an area. Jakarta and Bali offer different living experiences, from bustling city life in Jakarta to serene beachfront properties in Bali. Both locations cover vast areas and offer different experiences for expats.
When choosing a location, it’s important to consider the proximity to your office, schools (if moving with a family), shopping malls, local amenities and public transport hubs. You should also consider the time of day that you will be travelling as this will impact your experience.
Finally, it’s important to work with a knowledgeable Real Estate Agency who will be able to guide you through the different options to help you settle in the best possible location.
2. Schedule property visits at different times
In Indonesia, Evening Prayers are common and are delivered on a public address system so there may be additional noise implications to consider depending on the proximity to Mosques. It’s therefore advisable to visit the property and local area at different times of the day / night.
3. Choose between a Furnished or Unfurnished property
Some properties come fully furnished, while others may require additional investment in furniture and / or appliances.
It’s important for what is included to be clarified before signing a lease; what you see on the initial viewing may not be what you end up with when you move in, so it’s important that you ensure that what is included is not only clearly agreed but noted in an Inventory document with pictures to avoid any potential financial / legal issues down the line.
4. Review Utilities & Maintenance Charges
Clarify with your landlord what is included in the rent. Electricity, water, internet and maintenance fees are additional costs to consider, unless you are renting a Serviced Apartment where these are often included within the monthly rental payment.
Again, it’s imperative to be clear from the outset as to what is included and for that to be documented in the relevant Inventory document to ensure that all parties are clear on their respective lease liabilities.
5. Set a budget, including required upfront payments
When renting a property, budget is obviously an important consideration. It’s prudent to calculate your likely expenses and work out a rental fee that fits within your budget. It’s also important to note that many rentals require a full year’s rent in advance (especially in Jakarta), although this can often be negotiated into smaller payment terms (more common in Bali).
If you are looking for more flexibility, you may wish to consider renting a Serviced Apartment, however this will likely cost significantly more due to the short term nature of the contract.
6. Negotiate the price
Negotiating a longer lease in exchange for a lower payment could be a potential option to secure the property that you really want. Landlords may be open to negotiation, particularly for long-term rentals, however it’s vital to ensure that you work with an experienced Real Estate Agency to advise on issues including rent, furnishings, maintenance liability, contract terms and occupancy restrictions.
It’s important that the correct advice is given before signing the lease as once signed, you will be legally bound by the contract terms for the duration of the lease.
7. Understand the Lease Terms
Rental agreements in Indonesia may differ from what you’re used to in your home country. Ensure that you review the contract carefully, paying attention to the duration, deposit requirements, renewal terms and also beware of hidden costs.
Contracts are often in Indonesian (Bahasa) and English, although it’s important that you work with a multi-lingual Real Estate Agency to ensure that you fully understand the terms that you are signing.
8. Verify the property owner’s legitimacy
Ensure that the owner / agent has the legal authority to rent out the property to avoid situations where you may be left out of pocket by dealing with unscrupulous individuals who may not have authority to rent out the property. Verifying documents related to legal ownership is an important part of the due diligence procedure.
A qualified real estate agency will be able to guide you through this process to ensure you receive a hassle-free rental experience.
9. Use a reputable real estate agent
If you’re new to an area, reputable agents can provide a wealth of information about neighborhoods and communities that may fit what you’re looking for. Having a trusted real estate agent on the ground to protect your interests and guide you through the potential financial and / or legal pitfalls of renting in Indonesia is imperative.
10. Search for property listings online, using agents and through expat networks
Finding the perfect place could take a while, depending on your requirements and type of properties that are available. There are several routes to consider, including:
- Real Estate Agencies – Working with established agencies like The Lets Move Group provides expats with access to vetted properties, transparent and easy to understand contracts alongside professional assistance throughout the entire rental process.
- Online Platforms – Websites such as Rumah123 and Facebook groups can be useful for exploring available listings. Please note however, many of the listings are unreliable in respect of descriptions / prices / availability so it’s important to be wary of these.
- Networking & Expat Communities – Many expats find housing through word-of-mouth recommendations in expatriate groups, forums, and social media networks. Social Expat provides access to the largest expatriate network in Indonesia which I found helpful in meeting up with fellow expats and making business contacts upon arrival to Indonesia.
Find your property with the Lets Move Group
The Lets Move Group is a trusted property consulting company that focuses on helping you find a property that suits your needs and budget. The Lets Move Group can assist you with every aspect of your property search and we also offer a Free Property Finding Service so we can work with you (and other trusted agents if necessary) to help you find your new home.
“As a British expat myself I have first-hand knowledge of moving to and settling within Indonesia and I’m always happy to answer any questions that you may have. Feel free to reach out to me for a guiding hand throughout your expat rental journey!”– Miles Lampitt, Marketing Manager of LMG
