Uluwatu luxury villas are often advertised with attractive gross yields, but smart investors focus on the net number. Gross revenue can look impressive, yet the real picture only appears after operating expenses, management, taxes, and maintenance are taken out.

A realistic revenue example

Imagine a well-located three-bedroom clifftop villa with an average daily rate of $450 and an annual occupancy of 65%. That produces roughly $106,000 in gross rental income. During peak months, rates can be 40% to 60% higher, while low season may require discounted stays to maintain occupancy.

What does it cost to run?

Villa management and marketing: 15% to 25% of revenue.
Staff salaries: housekeeping, pool, gardener, security.
Utilities, pool chemicals, Wi-Fi, and maintenance.
OTA commissions for platforms like Airbnb and Booking.com.
Taxes, permits, and insurance.

In total, operating costs usually range from 30% to 45% of gross revenue, depending on how much is managed in-house versus outsourced.

Net ROI for a luxury Uluwatu villa

With $106,000 in gross revenue and $40,000 in operating costs, your net income is around $66,000. If the total project cost, including land, build, and furnishing, is $600,000, the net annual yield is approximately 11%. Villas at premium locations with higher ADRs and direct booking rates can push this toward 15% to 18% net.

What affects the number most?

Location and view quality.
Build quality and maintenance discipline.
Revenue management and listing performance.
Direct bookings versus OTA dependency.

The best returns come from combining a great location with a professional operator who understands revenue management, not just daily bookings.