Together with Bali, Lombok is a popular tourist destination that has gained worldwide recognition. Starting a Lombok villa rental business has thus become everyone’s desire. Even foreigners who see the profitable potential of Lombok property investment are interested to jump into this business and start their investment in one of the most beautiful tropical islands in the world.
If you are interested in starting a property rental business in Lombok, here are three possible channels that you can use to gain control of a rental property in Lombok.
- Collaborating with an Indonesian nominee
Any Indonesians or companies with Perseroan Terbatas status are eligible to be nominees who hold a property title on behalf of a foreigner. If you know someone or a company that you can trust to be a nominee, you can join in a partnership with the person or the company. Some documents that you have to take care of are listed as follows.
- The contract that legalizes the transfer of ownership of the property from the former owner to the nominee
- An irrevocable power of attorney affirming that the investor holds the full control of the property and has the power to sell it, to rent it, or to represent the nominee on the event of disputes
- A loan agreement between the investor and the nominee. This agreement affirms that the investor has lent its money to the nominee to buy the property. The nominee’s statement letter acknowledging the loan is also necessary.
- A permanent Right to Use (Hak Guna) that legally permits the investor to use the property
- Setting up a PMA (Penanaman Modal Asing)
By setting up a PMA, you can form a legal establishment that allows you to own a property permanently. Indeed, a PMA can only operate for as long as 30 years; however, because its operational term can be extended when new investment is made, you can have if extended theoretically permanently. To set up a PMA, you need to fulfil the following requirements.
- A business plan
- A confirmation that your company provides benefits to Indonesians in the form of job opportunities, skill improvement, etc.
- A cash deposit in an Indonesian bank
- A confirmation that the property you buy is your company’s asset
- Leasehold channel
This channel is a perfect option if you prefer a long-term lease agreement to an ownership agreement. Through this channel, you rent a property for 25 years during which you can reap the returns gained from the property. You can extend the rental term by creating a new agreement after the old agreement expires.
When the process of getting Lombok villa rental is done, you can start to manage it as the property to gain more income. Just imagine, by making investment on Lombok villa rental, you have a chance to get around $100 up to $1200 per night. It depends how you manage the Lombok villa rental which you have. The most important thing is that you have to make sure that your villa is following the requirements. Besides following the legal process just like stated above, you also need to make sure that the villa has qualified facilities and strategic location. Definitely, you will get more than you are expected if take the right way of investment in Lombok.