The Challenge of Choosing the Right Home One of the first major decisions a newly arrived expatriate must make is choosing the right home. Unfortunately, this decision is often made with little or no reliable information. Many expats rely on word-of-mouth from others in the community. However, these recommendations can be biased based on individual circumstances such as school choices, office locations, or personal housing preferences. What works well for one person may not be suitable for another, and these opinions are often based on limited experience. To ensure solid and reliable information, it is best to work with a trusted real estate agent who understands the needs of expatriates and can provide tailored guidance.
The Complexities of House Hunting in Indonesia
Finding a home unassisted in Jakarta or other Indonesian cities can be a complicated and frustrating process. There are only a handful of online resources available, making it difficult to get a comprehensive overview of the housing market before arriving. There is not a complete multi listing service that may be present in other countries. Some private listings found online may be outdated, incomplete, or unreliable, further complicating the search. Unlike in some other countries, a housing agent in Indonesia is not required to hold any formal qualifications. Instead, experienced agents have developed their expertise through handling numerous clients over time. This lack of standardized training means that while there are excellent and helpful agents, there is no universal measure of competency. For newly arrived expatriates, this makes it difficult to determine the reputation and reliability of an agent without firsthand experience or trusted recommendations.
Another critical aspect to consider is that landlords in Indonesia are almost always local, and rental agreements must be written in Bahasa Indonesia. While expatriates can and should request a translated version, this does not change the fact that the official contract is in the local language. Without knowledge of what should be considered standard terms in a lease agreement, tenants can find themselves at a significant disadvantage. Engaging a professional or experienced agent who understands the nuances of rental contracts can help expatriates avoid unfavourable terms and ensure they are protected under the terms of their lease.
Understanding Different Neighbourhoods
Understanding different neighbourhoods is another major challenge. The most common cities for expatriates include Jakarta, Surabaya, and Denpasar in Bali. Many expats initially request housing in a complex to ensure an immediate sense of security within an enclosed environment. However, there are a limited number of such housing complexes, and they are almost always at full capacity. Depending on the timing of the move, availability in these areas may or may not be an option. Living in an enclosed compound provides an immediate sense of community, allowing children to ride bikes around the neighbourhood and visit friends nearby without requiring strict supervision.
One common mistake expats make is relying on Google Maps to assess commuting distances from a potential residence to their office or school. Unfortunately, Google Maps does not factor in the severe congestion that can occur between two points. A seemingly short commute can take an excruciatingly long time due to unpredictable traffic conditions. The only reliable way to determine realistic commute times is to test the route during peak hours before making a final decision.
Another factor to consider is flooding. Although the rainy season lasts only part of the year, flooding remains a critical issue in certain areas. It is essential to ask not only if a house is in a flood-prone area but also whether access roads leading to the home are susceptible to flooding. Even if the house itself is safe, blocked roads and standing water can create serious inconveniences during heavy rains.
Housing Quality and Maintenance Issues
Due to Indonesia’s high humidity levels, homes tend to deteriorate more quickly than in drier climates. Additionally, because there is little standardization in the construction process, a house that appears to be well-built may reveal significant problems only after moving in. The most common issue expatriates face is maintenance, as most rental agreements require the full payment of rent upfront. This leaves tenants with little or no leverage to push landlords into addressing maintenance issues in a timely manner.
Response times for maintenance requests can be slow, and the quality of repairs can vary significantly. Many landlords prioritize cost-saving measures, which often means sending underqualified workers to perform temporary fixes rather than implementing long-term solutions. Without professional oversight, tenants may find themselves dealing with recurring plumbing, electrical, or structural issues.
Before signing a lease, it is crucial to investigate aspects of the home that may not typically be of concern elsewhere. For example, understanding the water supply is important—whether it comes from a personal well on the property or city-provided water. Termites can be a common problem in tropical climates, so checking for previous infestations is advisable. Structural integrity should also be assessed, especially in areas prone to earthquakes. Is there any cracks that may have been a result of structural movement. Another often-overlooked issue is the power supply; ensuring that the home’s allocated electricity can support air conditioning units, refrigerators, washers, dryers, and personal electronic devices without overloading the system is essential. Drainage should also be tested to avoid unpleasant odours in bathrooms and kitchens.
To protect yourself from potential maintenance headaches, ensure that your lease agreement includes a clearly defined maintenance clause. This should specify which party is responsible for particular types of repairs and set an expected response time for addressing maintenance requests. Having these details explicitly outlined in the contract can help prevent future disputes and ensure that the home remains a safe and comfortable living environment for you and your family.
Lease Agreements, Deposits, and Hidden Costs
Lease agreements in Indonesia differ from those in many Western countries. Landlords often prefer long-term commitments, typically requiring one- to two-year leases paid upfront. In most cases, companies cover the rental costs for expatriate employees, but if there is a change of mind about the property after payment, it is almost impossible to get a refund from the landlord. A diplomatic clause is one exception that allows for early termination, but this clause is typically reserved only for diplomats.
If a lease is terminated, landlords will commonly allow tenants to sublease the property. However, in reality, this can be quite difficult unless the property is within a highly sought-after complex or compound. Additionally, maintenance fees are generally not included in the lease, nor is the upkeep of the property, such as pool or garden maintenance. These costs typically fall on the tenant. Most apartments also have a service charge, which is expected to be covered by the tenant. Utilities, including electricity, water, and internet, are almost always the responsibility of the tenant, with electricity often being the highest monthly expense due to the necessity of running air conditioning for a large portion of the day.
Normally, the one month deposit that is required to be paid on move in, is not refunded to the tenant until the final power bill and water bill are issued on the 20th of the following month. In most cases, the expatriate may have already left the country by this time, so they need to rely on their housing agent to recover the deposit. It is essential to have a well-documented record of the property’s condition at move-in to avoid any disputes when trying to recover the deposit.
The Role of Property Management Services
During your stay in Indonesia, maintenance issues are almost inevitable. Employing a property management service ensures that expatriates have a trusted company that speaks English fluently, making communication easy. These professionals understand expat expectations and provide assistance regardless of when an emergency or maintenance issue arises. Without a property management service, expatriates often rely on their company’s HR department, which may not see the urgency of the situation, may not be equipped to help, or may only provide limited assistance. Alternatively, tenants may have to contact the landlord directly, who may or may not be responsive.
Engaging a qualified property management company ensures that all parties involved—the tenant, the employing company, and the landlord—can remain stress-free, knowing that any maintenance issue will be handled efficiently and professionally. These services provide peace of mind, ensuring that expatriates can focus on their work and daily life rather than struggling with property-related concerns.
Request a House Inspection
It is a good idea to insist on a house inspection before signing a lease. This should be conducted at the expense of the landlord to ensure that any known problems are addressed before move-in. Key factors to check include the power supply to the home, structural soundness, water quality and pressure, and ensuring all woodwork is free from termites. Additionally, the home should be inspected for dangerous materials such as outdated asbestos or harmful paints that may contain toxins. If children are part of the household, potential hazards such as pool fences and gates on staircases should be evaluated and addressed. Some companies may also require that the house has a landline for security measures or request that a three-point security barrier is in place. A three-point security system typically includes a security guard at the entrance gate, a secured front door with a reliable locking system, and an additional barrier such as reinforced windows or a secondary locked entrance. Taking the time to check these factors before moving in significantly reduces potential issues and ensures peace of mind for the tenant. By proactively addressing these precautions, expatriates can confidently settle into their new home with fewer surprises and complications. If conflicts arise over lease terms, deposit returns, or property conditions, a property manager can provide guidance and advocate on behalf of the tenant. When the lease period comes to an end, they can also facilitate renewals or assist in finding a new home that better suits changing needs.
Final Thoughts on Finding the Right Home
Finding a home in Indonesia requires careful planning and informed decision-making. Understanding the local rental market, recognizing potential pitfalls, and working with trusted professionals can significantly improve the process. With the right approach, expatriates can avoid many common challenges and secure a home that enhances their experience in Indonesia.
