Bali villa due diligence checklist.
The evidence to request before you buy.
A listing is a starting claim, not a completed diligence file. Request the records behind revenue, costs, rights, permissions, physical condition, and possible exit terms. Where evidence is missing, mark the conclusion unknown rather than filling it with an optimistic assumption.
Do not start with the seller's ROI. Start with the assumptions.
A headline ROI is not a bank statement. Ask whether a number is gross revenue, an owner's actual cash result, or a modeled scenario. BVT's badge uses shared occupancy and pooled operating-cost assumptions plus a noncash lease allowance where applicable. It excludes financing, tax, and major works; it does not establish what this villa has earned.
On BVT, start with the Bali villa ROI guide, compare the listing against the methodology, and use this checklist for the questions a buyer should ask before offer, deposit, or legal review.
Twenty-five evidence checks for a real purchase decision.
- 01Identify whether each quoted return is gross revenue, modeled net yield, or verified owner cash flow; BVT's badge is a screening estimate.
- 02Request dated property-level booked nights, realized nightly revenue, cancellations, and payout records; reconcile them to the claimed period.
- 03Test lower occupancy and nightly-rate scenarios against those records; BVT's published 65% occupancy is a shared assumption, not booked nights.
- 04Ask how any comparable nightly rates were selected and dated. BVT's August asking-rate sample has unverified distinct-property coverage.
- 05Replace BVT's pooled 40% cost allowance with property-specific management, platform, utility, upkeep, tax, and major-works evidence.
- 01Have independent qualified counsel verify the seller's title documents and the rights available under the buyer's proposed structure.
- 02For a leasehold, obtain the signed agreement and confirm the start date, end date, remaining years, and parties entitled to grant an extension.
- 03Ask counsel to review written extension terms and pricing; do not include an unpriced or informal extension in a base case.
- 04Separate BVT's noncash straight-line lease allowance from actual lease payments, operating bills, and any observed resale value.
- 05Confirm with independent legal and tax advisers whether the proposed holding structure, use, and transfer terms work for this buyer.
- 01Ask independent counsel to check title, land-use classification, documented access, building approvals, and the permissions needed for the intended rental use.
- 02Compare the existing or proposed building with approved plans and permitted use; ask which deviations require a remedy.
- 03Request searches and documents for encumbrances, disputes, competing claims, boundaries, and access rights rather than relying on seller assurances.
- 04Have your own adviser review the sale or lease agreement, payment conditions, and remedies before any deposit or commitment.
- 05Obtain a written estimate of transaction costs and buyer-specific tax obligations; BVT's yield badge excludes them.
- 01Commission an independent condition inspection covering drainage, waterproofing, roof, pool, electrical, plumbing, cooling, and structural concerns.
- 02Price near-term repairs and replacement of furniture, linens, equipment, and appliances separately from routine operating costs.
- 03Visit the property and check access, parking, noise, nearby works, and drainage in conditions relevant to its use.
- 04For off-plan villas, review delivery milestones, payment protection, change orders, delay remedies, and the developer's completed projects.
- 05Get staffing, cleaning, utilities, and maintenance proposals that fit the intended service standard; do not assume the modeled nightly rate is achievable.
- 01Ask for documented completed sales if available; do not treat current asking listings as achieved exit prices.
- 02For a leasehold, model the remaining term at a possible exit date and ask advisers about transfer restrictions and likely buyer requirements.
- 03Run a downside case with lower booked nights and rates, higher costs, a major repair, and a longer selling period.
- 04Calculate total acquisition cash required and the return under that downside case before deciding what, if anything, to offer.
- 05Keep personal-use value separate from rental income and resale assumptions; BVT does not price lifestyle benefits.
Flags are questions, not safety ratings.
A short lease, off-plan status, or budget-rate adjustment calls for specific documents and an independent review. A flag does not establish that a deal is bad; absence of a flag does not establish that title, condition, bookings, or resale prospects are sound.
Use the homepage risk shortcuts to find dossiers with fewer or more automated flags, then read each listing's missing-value and model-scope notes. Do not infer safety from a low flag count.
Take the next evidence step.
Filter by yield, tenure, price, and risk view.
Understand gross yield, net yield, expenses, and occupancy.
Separate the noncash model allowance from documented legal rights.
Replace the pooled model allowance with property-level bills and contracts.
Use dated booking records, not an area proxy, to assess occupied nights.
Send the listing and questions; scope and availability need confirmation.
Common due diligence questions.
What is the biggest red flag in a Bali villa listing?
There is no universal biggest flag. A return claim without dated property-level revenue, cost, and tenure evidence deserves scrutiny. Ask whether it is gross, modeled net, or verified owner cash flow; BVT does not verify actual earnings.
Is a flagged villa always a bad investment?
No. A BVT flag is a prompt to investigate a source fact or model assumption, not a verdict. Fewer flags do not prove legal, physical, or financial safety; unresolved findings need independent review.
Should buyers rely on agent occupancy numbers?
Request dated property-level booking exports and payout records for a stated period. Review counts or area anecdotes do not verify occupied nights, and BVT's 65% yield scenario is an assumption rather than observed occupancy.
Does BVT replace a lawyer or notaris?
No. BVT is an investment-math and listing-audit tool. Legal structure, title, permits, tax, and contracts require independent professional advice in Indonesia.