Going On Nine Months Without A Tenant.

How much are you asking will be the first question. The second one is location and the 3rd is that expats are not coming over in large numbers due to changes in the law and obtaining visas.
There is so much choice for renting that people are looking for the cheapest and closest to work or school.

Hi Myjak,
I actually have a look at your advert and location. I would like to offer an explanation that might be affecting are:
- The place is quite far. And falls on Tangerang Selatan. And not Jakarta.
- The transportation wise needs walking distance inside a small road. A car is definitely a must.
- The price in Tangerang Selatan might not be that high.
- Rental Rates Price has been going down in respect to Value of house. Expect 1 to 1.5 % rate from value of house. More than that wont be easy to find renters nowadays.
- You are relying on rates that are expats rate. Might want to include both expats and local Indonesian.
- Has the rental price been increased? Or just stay the same. 2015 onwards has been a tough year for rents.

My suggestion is to:
- Reevaluate rent price. And look at your neighboring prices. And local Indonesian rates.
- Find a good agent close by there to find more prospective renters to look at the property.
- Indicate what are the many good points, included or excluded in the price. For example, are the maids and gardener included?
- Put a direction map more clearly for those who are not familiar with the area and provide the link. For example:
https://www.google.co.id/maps/place/Jl. … 748d?hl=en
- Avoid only USD Rates. Employ both USD and reasonable IDR equivalent when possible.
The USD rates are currently scary in Indonesia.
- Employ other expat  forums besides this one.


Hope that helps.

Fewer expats
Massive rents that make people look at living in cheaper areas, or houses without swimming pools and several servants.

By the way, if you own the house, it's probably illegal unless you're married to an Indonesian and have a prenup ... but that's another story.

The price of oil has plummeted. Oil companies are laying off employees in large numbers, especially in exploration which is expensive and becoming uneconomical. Some expats are being moved back home in other sectors too, and not only in Indonesia but in other countries in Asia too such as Singapore and Malaysia where rental markets also have become more difficult. I think I heard that Chevron had laid off over a thousand employees in Indonesia?

As Luke says, it would be interesting to know your asking rental. I'm a strong believer in buying properties in the medium to lower price range because they are much easier to rent out. Expensive properties suitable for expats are more risky and the percentage of people who can afford expensive rentals is much smaller.

Rather than leave the house empty, I'd drastically reduce my asking rent and I'd make sure the house is very attractive.

So, I'd be interested to know how much was your asking rent and how much would be your selling price.

Thanks guys.  I knew all the would be answers anyway but was hoping against hope that one would come up w some kind of encouraging news due to my relying all the time to the Universe heeehee... Thanks for your kind and thorough explanation enduringword.  Yes, I've assigned some agents already and yes, many offers came and they're all by Indonesians w equivalent to US 1000/month which I just can't as it is maid, night-watch man, gardener and a pool-cleaning man are included in the price. 
I do own the house, Fred.

Hansson, my ad is on this site by the same name, I think?  You can take a look there.  I asked US $ 2500 as that has been the price I charged to the previous tenant.
Now I'm open to a long-staying room rental as well if I can't get any expats to rent the whole house. 
Your explanation makes more sense to me now instead of just on the fact of KITAS which to me was not a satisfactory reason for the market to have plummeted drastically as this is not happening to my property alone but to those who owns several in the Kemang area which are all empty to date.
I managed to rent out to Bosch executive since their office is not far from my location as well as the school for his kids are right behind my house.  Thus for my confidence that location is only important to those single expats whose offices in Jalan Sudirman/Kuningan areas.
After all, although it is in Tangerang but it merely takes 20 mins to Pondok Indah Mall 1 and 2 by car without traffic of course. 
Some expats prefer to be away from the concrete jungle and pollution, therefore, my house has its own particular appeal and that is my marketing advantage.
The previous tenant was offered by the Company's HR all the beautiful moderns houses to select from, they did not want to have anything to do with it.  They just wanted my house which is a true tropical Villa, organic greenery surroundings out of the cement blocks they are accustomed to in their country or in their previous post which in this case was Japan.  Oh well... I'll just have to have patience I suppose.  Am not interested in selling but if I must then I shall.

What is the value of the house?
Is the rent about 1 to 1.5% rate of that value?

Heh... Maybe Hansson wants to buy.
And if it is really cheap... everyone would want to buy, including me.

The issue is you have 1200 m2 land (in contrast the building is not that big), and it is really too big and too much maintenance costs. With the land tax PBB, must be a worry trend for increasing costs too.

1000 USD might be too low. 2500 USD might be too high. So a middle ground perhaps.
It is better to rent rather than not to rent. Preferably 2 years rent at a time to avoid agent hassles.

I have been over there recently, from Jakarta. It took me 2 hours even on a Saturday. The traffic was killing me...

Perhaps you might find an Expat who wants and ticks all the criteria of quiet living over there. And doesn't need to travel too far, or for work.
I have seen an expat who do live nearby there. It is popular. But the property is not as nice as yours.

This is a bit off topic, but maybe relevant to crazy prices.

Recently I saw an advertisement near my home for rent. I passed by everyday.
It is a strategically located property, could be used as home/office both.

I called in and found out... The owner said:
The place is 555m2. And the building is multistory with a combined 2000m2.
The renting price is 3.5 M per month. With selling price is 225 M. That works out in dollars around 260k and 16.7 mil respectively.
The owner reasoned that for renting it is RP 150.000/m2

That is really crazy high. Especially the owner calculated based on multistory building. Should have calculated from the land itself.
Previous tenants were multinationals.
I doubt the person would find such conditions on 2016 easy to tackle. I agree with the above posters 2015, that less activities from working expats or Multinationals - especially oil and gas.

Enduringword, you're so kind! You're right, my land is that size and the house is 3 storeys so 500 m altogether.  I should lower the price as per suggested, I agree.  It is my fault that this house is vacant as I was offered by the previous tenant to let it for 4 years and I refused thinking that I might need the house at unforeseen time.  Bosch was ready to give lumpsum for that length of time and when I refused, they offered two years and I still did not accept.  Was a big mistake.  On the other hand, I'm having a lovely time here w my daughter from NY who's staying w me here right now so if I had accepted the offer, I wouldn't have had this marvelous time w my daughter here.  I'll just have to think in that way otherwise I'm going to pull my hair haha... Kidding!
I told agent if the price is right on buying offer, I'll let it go.  Though that is not my intention as I would like to keep this house for as long as possible.  Also as investment as I live in Milan, Italy.

Sounds like a very nice house but they say don't get attached to your properties. I tried renting out an apartment in Kuala Lumpur that I bought about 12 years ago for about six months but no luck. So I put it for sale last month and now negotiating the SPA. I'll use the money to buy some cheaper properties that are easy to rent out or even some land.

On the other hand, I have a couple of apartments in a cheaper condo building well placed in Bukit Bintang which rent out continuously. As soon as one tenant moves out another moves in. The apartments were pretty cheap when I bought them quite some time ago and the rents are about Rp8.5 million/month which is considered cheap in Malaysia.

My point is that for investment, I find that expensive properties are becoming more and more difficult to rent out and I am only buying lower priced but well placed properties now. I am happy to own properties that rent out for Rp70 - 80 million/year because they rent out very quickly.

Hansson, you're doing the right thing.  Someone did suggest to sell the house and buy 2 apartments just for investments just like what you do exactly.  Have still to think it over as I'm so attached to this house for sentimental reason.
Whatever comes first, I'm open to it as long as it is a lucrative deal. 
I know KL well too so yes, Bukit Bintang is one of the primary area.  Lucky you!

Hansson reminded me...
Of my University days....  trying to find rents that fits my budget. And preferably the place not that cheap in appearance. Comfy will do and enough things to put my hoarding habits... no roomates for me.

HAHA nostalgic days.

There are always pro and con in terms of property.

More expensive properties may rise in value faster if they are located in prime urban areas. Thus you buy them cheap and with selling them in mind.

Cheaper properties may rise slower on values in comparison. However, they are good for any seasons to rent out and faster cashflow.

Diversity works well. As similar with the stockmarket equity/bonds/money market finance portfolio, your financial planning often advocates for. When the market changes, you repositioned.

Ha! Cashfow! The magic word. And that's what I'm needing right now.

I lived in a dump once as well. Was doing a Masters and ran out of cash. Ended up moving to a tiny little dump of a room that was humid as heck.

But I am not suggesting becoming a slumlord. Just that these days it seems to make more sense to buy well situated properties that are affordable to a bigger percentage of the population. These are by all accounts decent fairly large houses suitable for foreigners and locals alike and they are the ones that rent out fast, and one of the other golden rules of property business is to not get attached to your properties so I have no qualms about selling off nice expensive properties to buy smaller less expensive ones that rent out more easily.

I wholly agree with Hansson.
*Thumbs Up*

Where I am, landlords are not renting out houses now rather turning them into Kosts either legally or not which has pushed the price up on the houses that are available. Upmarket Kosts seem to be on the increase making it harder for families to find decent housing near schools and their family.

Realistically, of course. I agree too. But I still believe in miracles. Ok, just a jest. Thanks guys! Love your inputs.

Yes, Lukereg. I'm willing to tent out two bedrooms separately.

*rent out

That's absolutely true in Bandung too Luke. I see new and stylish looking houses being built all over the place and then suddenly realise that they are kosts and not houses. Seems to be the way to go these days. And nowadays you need to provide private bathrooms, wifi, kitchen and common living room to keep the  students or workers happy in order to ask a good rent.

Correction on my Post #8
It is rental per year for 3.5 M, the owner was asking. Not monthly.
Was typing away and could not edit it out now...

Yes I have seen sub-division of a house into units. These are commonly known as KOST - Single bedrooms usually with a bath attached.

Even in the upmarket area, they rent out 3 separate sections to expats, with 2 to 3 bedrooms per section and each has their own water, electricity, telephone, and internet.

hey myjak,
Airbnb is popular with lots of tourists and expats nowadays. It offers short term stays on a different setting than the traditional hotels.

Often the owner becomes host. And might live or not live there.
And offer each separate bedrooms.
For example here on Ubud, I saw:
https://www.airbnb.com/rooms/7350519

Might be worth exploring. Since you pretty much has the manpower setup and not too far from the airport. With the property as a unique experience for people outside Indonesia.

Airbnb is becoming really popular now. Generally you can make money doing that, but you need to spend a lot of time taking care of it or paying someone to take care of it. But would Tangerang be a destination where people would want to stay in an Airbnb?

I stayed in a couple of them last week in Tokyo, but I got the feeling that they were not exactly allowed. I mean we were told to keep noise to a minimun and not to speak to the security guard or at least to tell anyone who asked that we were friends of the owner. Seems that as with lots of apartment buildings around the world, daily rentals are not permitted. JMB's and MC's can pass as many by-laws as they want but it is something very difficult to stop.

Owning a house wouldn't have those problems, but if you have new guests arriving every day or every few days then it means a lot of work maintaining the place. Plus, Airbnb doesn't require guests to pay deposits so you take a risk.

Getting two years rent up front is nice but you may be able to make a lot more money doing Airbnb.

I will add that my wife stayed at an Airbnb house in Lembang with her old classmates from Jakarta, about nine of them in total. It was a very rustic traditional looking wooden house brought over from Sumatra. They paid Rp1.2 million for one day.

Yes, you are right for your concerns Hansson. There are pro and cons to airbnb. One has to manage them if serious on this.

However, the OP has some perfect conditions such as full complement of maid, gardener, watchmen, and poolman.
Seems setup ready to go anytime.

The house is rather large with pool and scenic benefits. Close to pondok indah, an elite district.

The only downside is only traffic and transportation.
Can even complement with driver/guide car or just specialised blue bird daily hire.

It is worth checking out. It will be easy to survey what is available in the way of Airbnb in the area and what kind of prices people are charging.

Once Jakarta mass rapid system is established and traffic somehow sorted out, I expect airbnb would flourish here.

Guys, I have all my ads on airbnb for 4 years now and yes, I've received several guests but they're not steady income.  I placed another new ad there on renting it as a long staying guest for a room.  Also another ad as vacation home. Three types of renting my house but nothing much come out of it. I have received all those bookings already but not regularly.  I can't rely on them alone as my interest is more on expats yearly rental.  https://www.airbnb.com/rooms/801775https://www.airbnb.com/rooms/6106215https://www.airbnb.com/rooms/7992372

As you can see, all done.  There's nothing more I can do.

The idea of providing a car and a driver might be something I'm going to look into as it sounds interesting to attract guests to book at my place.  Thanks for that idea, honestly.  I will put that into my airbnb ads after I revise my calculations.  Thanks again.

Wow you are a pro! Very nice bed and breakfast!


You did your best, it is unfortunate that global economy is down and fewer working expats. Another thing is that Jakarta hasnt been promoted enough as a tourist destination. For example a day trip to mekar sari, taman safari, ancol dreamland, kampung gajah bandung, etc would be pleasant - other than the city tours. Especially if they are travellimg with kids.
Even a longer trip to Yogya or Borobodur might be possible. Indonesia is not just Bali.

On my other post on best cities to live in Indonesia, I described how it could be perhaps conveyed more.

There are car charters that goes for a day rate, including driver, 8 to 10 hours shift.

Thanks for all the ideas. 
Despite all the ads on Airbnb, having a yearly contract by an expat is what I'm really interested in so that I can just return to Milan.  That would be the ideal scenario for me.

Yup. Airbnb would work better with apartments in Jakarta or somewhere more of a holiday destination than Tangerang, in my opinion. People use it as an alternative to hotels where they can save money. I think you're right to try to rent it out long term.

Oh... You are leaving Indonesia. Then it would be practical to find renter for the long term and avoid the management hassles.

In the end to rent out is better than empty. With a possible selling out, if the price is right.

enduringword, you've rounded up my exact plan or wish, at this rate... It's not that I'm leaving Indonesia.  My home base is Milan, Italy.  This house is more for investment but whenever it is vacant, I'd come and stay here like I've done for the past 4 months now.  I'm booked to return end of April.  Hope very much that some kind of solution can be reached already by then.  Even the house is empty I have my staff living here anyway so that's not a concern as they have their own no-cost dwellings in this premises that have their own entrance from another street.  Also I let them have their whole family w them staying here. I pay for their electricity too.  I don't mind as their loyalty and honesty is of the utmost importance to me.

A lot of expats have left Indonesia and therefore there are a lot of vacant properties around - so more choices at better rental rates. *

jasongw, I have sent you a pm.  Thank you.  I'm open to discussion.
Oh, btw, your link is blocked.

I very strongly advise against using estate agents.
Most of the time you can easily find a property without them, and you end up paying a lot less.

Fred - firstly he is looking for tenants and not for a property. Also if you are looking for a property you don't need to pay anything to the real estate agent as the commission is paid by the landlord.