Avoid Costly Mistakes When Renting a Home in Bali

Imagine: you have found a cozy house in Bali that perfectly meets all your requirements. A great location, convenient layout, good atmosphere, and most importantly - a very pleasant owner with whom you immediately got along. Only a small formality remains - to sign a standard contract regarding the terms and payment amount. This is where many fall into a trap, even if they have read the contract in advance and noticed nothing suspicious.

This was exactly the situation Vera found herself in. She has been wintering in Bali for several years and usually signs these “tick-box papers” without much attention. Typically, the landlord brings a ready-made contract, which is quite standard - a few points about dates, rent amount, and deposit size. Yes, she knew that the documents said nothing about the responsibilities of the parties, repairs, or who pays for the natural wear and tear of things, but it never seemed important to her. There had been similar contracts before, and there were no problems.

But this time, things did not go well. Following her usual approach, she rented a modest and inexpensive Balinese house for a long term and immediately loved it so much that she even decided to refresh the walls slightly. Mold began to appear in the kitchen, which is typical for Bali. She asked the owners for the necessary supplies to deal with it, paint, and tidied up the room. The owners were very pleased with Vera and didn't hold back on their gratitude.

But she couldn’t stop there. First, the tap broke, then the pump. The owners claimed they wouldn't repair them since they broke during her stay. She had to pay for the repairs herself. Moreover, when the pump malfunctioned again a month later, the landlords warned that if it couldn't be repaired, she would need to buy a new one at her own expense, despite the fact that the property wasn’t new when she moved in.

It was then that Vera remembered the contract, which didn’t contain a single clause to protect her in this situation. She decided to move out but faced more expenses. The owner also accused Vera for the old air conditioner and rusted door from the rain, didn’t return the deposit, and withheld payment for the paint she bought from him for the walls. Essentially, she ended up repairing someone else’s house at her own expense and then paying for the restoration of old items and equipment.

This story could have ended worse. She moved out in time and only lost the deposit. But in the case of more expensive housing, the costs can run into millions of rupiah. In reality, tenants may be obliged to repair the roof, replace equipment, or pay for major breakdowns. All because there are no clarifying clauses in the contract.

Such stories are not uncommon in Bali. The reason is almost always the same: the contract is drawn up to protect only the landlord. Foreigners sign the document without thinking about the details because they view renting as a simple everyday issue. But legally, it is a full-fledged obligation that operates under local laws.

Avoiding such problems is quite possible. Legal Indonesia specializes in the verification and drafting of contracts for expats and businesses.

What Legal Indonesia does:

The work duration is 2–3 days. The cost of verification or drafting is from 1.5 million IDR. This is less than the deposit for an average house or air conditioner repair.

Importantly, Legal Indonesia staff work remotely. This means you don’t need to visit the office - just send the document, and the lawyers will return it when everything is ready.

With this approach, the tenant receives a contract where the rights and obligations of both parties are clearly defined. And even if the house is old, the equipment is worn out, and the rainy season adds problems, all expenses are divided fairly and don’t fall entirely on the tenant.