Adrian Campbell

Bali villa rentals during COVID, and why I kept the same team

By Adrian Campbell4 minute readBali

In short

Bali villa rentals had a hard time during COVID, because international travel to the island all but stopped. The holiday villas I have run since 2014 kept trading through those years, looked after by the same local team that has been with them from the beginning. This note is about the approach behind that, not a set of figures.

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What happened to Bali villa rentals during COVID

Bali lives on tourism. When Indonesia shut its borders to most foreign visitors in 2020, the island's main source of income stopped almost overnight. Villas, hotels, restaurants and drivers all felt it at the same moment.

For villa owners, the costs didn't stop when the guests did. Wages, maintenance, electricity, internet and any land lease payments all kept falling due. Every owner had to decide quickly what to keep and what to cut, and the team was always the biggest part of that decision.

My Bali villa portfolio has been let to holidaymakers through Airbnb and other platforms since 2014. It kept trading through the pandemic, and one local team ran it from start to finish.

I'm not going to put numbers on those years. Every owner's COVID was different, and figures from that period say little about the future.

Why I kept the same local team

The team is the business. Guests rarely meet the owner of a holiday villa. They meet the people who clean it, fix it, welcome them and answer messages late at night.

My approach comes down to a few beliefs:

  • People who know a property are hard to replace. Staff know a villa's quirks, its neighbours and its suppliers. That knowledge walks out the door when they do.
  • Trust runs both ways. A team that is treated well in a bad year tends to look after the business in a good one.
  • Rehiring costs more than it looks. Recruiting and training new people after a downturn takes time, right when guests are coming back.

None of that is unusual. It is just easier to say than to hold to when bookings disappear.

Where I learned to work with Indonesian teams

My first business in Bali was a resort. From 2011 to 2014 it was Troppo Zone Puri Rama in Kuta, and at its busiest it employed about 80 local staff. Running it is how I learned Indonesian and how business is done in Indonesia. The Troppo Zone page tells that story.

The resort was sold in 2014, the same year the villa portfolio began. Some of the staff from my time there still work at the resort.

Why speaking the language matters in a crisis

Speaking Indonesian matters most when things go wrong. When people are worried about their jobs, they deserve a straight conversation in their own language, not a message passed through someone else.

It also works the other way. A team that can speak to you directly tells you about problems early, while they are still small. That is worth more than any reporting system.

The same principle guides Kinnara Capital's community work on Lombok, where I talk with families and village leaders myself rather than through a translator.

Running villa rentals from a distance

I run the portfolio alongside other businesses, so managing it remotely is part of the model, not an exception. These are the things I believe make remote management work:

  • A local lead with real authority. Someone on the ground who can make decisions without waiting for the owner to reply.
  • Clear money rules. Two signatories on accounts is a rule I apply across my companies. Any business run from a distance needs that kind of control.
  • Platforms that show everything. Booking platforms handle calendars, payments and reviews, which makes it possible to see how a villa is doing from anywhere.
  • Pricing that follows the market. When international travel disappears, the only guests left are those already in the country. Rates, minimum stays and listings have to be rethought for them.
  • Maintenance that never stops. A villa left closed in the tropics deteriorates quickly. One that is kept ready can take a booking the day demand returns.

The money rule came out of earlier failures, which I set out on my lessons page.

What I take from those years for rental property

Rental income is never guaranteed. Tourism can stop with very little warning, and any owner who budgets as if it can't is taking a risk they may not see.

That is one reason I don't publish yield forecasts for Saraya Beach Resort & Residences. The only figure I give is the owners' share of room revenue, which I cover in my note on choosing a hotel operator for a villa resort.

The other lesson is about people. Buildings can sit empty for a season and recover. A good team, once lost, is much harder to rebuild.

This note is general information only. It is not legal or financial advice.

Common questions

Did Bali close to tourists during COVID?

Yes. Indonesia closed its borders to most foreign visitors in 2020, and international tourism to Bali almost stopped until travel reopened. Because the island depends so heavily on tourism, villa owners, hotels, drivers and local workers were all hit hard. Domestic travel carried on at a reduced level under rules that changed often.

How do you run Bali villa rentals from overseas?

With a trusted local team who can make decisions on the ground, clear written rules on money, and booking platforms that show calendars, payments and reviews from anywhere. Regular maintenance matters as much as marketing. A villa that is kept ready can take bookings as soon as demand returns, while a neglected one in the tropics deteriorates fast.

Why keep villa staff through a downturn?

Because staff who know a property are hard to replace. They know its quirks, its neighbours and its suppliers, and that knowledge leaves with them. Rehiring and training after a downturn takes time, right when guests are coming back. A team that is treated well in a bad year usually looks after the business in a good one.