Finding a home in Jakarta can be a varied experience for expats, ranging from smooth and straightforward to stressful and exhausting.
The key to a successful search often lies in choosing the right housing agent or real estate broker. Whether you’re dealing with independent brokers, franchised real estate firms, or corporate housing services, understanding how each operates can help you avoid common pitfalls and find the right home for your needs.
Independent Brokers
Independent brokers are often self-employed individuals who rely on word-of-mouth and personal connections to locate potential homes for expats. They might not be the exclusive representative of the property owner, but since their commission is tied to the rental amount, their incentive is often to secure the highest possible rent.
These brokers are sometimes recommended by colleagues or company insiders, who may even receive a percentage of their fee for successful placements. While this arrangement might benefit someone within your company, it doesn’t guarantee that the broker has the resources or expertise to find the best home for your family.
Independent brokers typically collaborate with other brokers, especially if they lack listings in a particular area. This can lead to a longer search and a parade of unsuitable properties, as the broker may not be familiar with all the homes they show you. Moreover, since multiple brokers are involved, you may face a more complex negotiation process. Remember, independent brokers should not charge you directly, as their commission comes from the property owner. However, this also means their loyalty may lie more with the landlord than with you. Commissions typically range from 2.5% to 5%, which means that for high-rent properties, the commission can be quite substantial.
Franchised Real Estate Brokers
The growing demand for professional real estate services in Jakarta has led to an increase in franchised real estate brokers affiliated with multinational firms. These brokers are trained in international real estate practices and often maintain their own property databases. However, a downside is that they typically only show homes they have listed, which may limit your options. Additionally, the professionalism of these brokers can vary, as franchises are individually owned and operated.
Corporate Housing Services
Corporate housing services and relocation firms offer a more comprehensive and client-focused approach. These services are particularly beneficial for companies looking to secure housing for their expatriate employees. Unlike independent brokers, corporate housing services are dedicated to meeting the needs and concerns of the expat family and the sponsoring company. They work to secure the best possible deal and provide a range of services, from pre-lease inspections to lease negotiations and even finding subleases if the expat’s contract ends prematurely. These firms also offer broader relocation services, including orientation programs and housing management, making them valuable partners for companies managing multiple expatriate relocations.
Housing Needs Assessment
A professional housing agent will typically begin with a “Housing Needs Analysis” to understand the specific requirements of your family. This helps in narrowing down the options and avoiding time wasted on unsuitable properties. It’s important to be clear about your lifestyle, interests, and any special needs to ensure the agent can find the most appropriate matches. While not all your expectations may be met due to market limitations, a good agent will work to align your expectations with the realities of Jakarta’s housing market.
Housing Costs and Terms
Understanding your housing allowance is crucial before beginning your search. Expat-standard housing in Jakarta typically starts at around US$2,500 per month, with prices in prime areas reaching up to US$7,000 or more. Landlords usually require at least one year’s rent upfront, though some may accept payment in two instalments. The Jakarta housing market has seen fluctuations, with recent oversupply leading some landlords to drop their prices, while others in prime locations have remained firm.
Internationally managed apartment buildings typically adhere to global corporate policies that regulate annual rent increases, generally ranging from 10-15%. Tenants are usually informed of these expected adjustments when signing their lease. However, recent challenges like rising electricity costs and higher wages have led some owners to deviate from the standard increase. Instead, they’ve instructed management companies to find alternative ways to offset these rising expenses. In response, some management firms have raised service charges, such as the increase from 10% to 13.5% in 2014, to help cover the higher operating costs.
When negotiating a lease, be aware that the rental market in Jakarta often demands 2-3 years of rent in advance, particularly for sought-after properties. Rental rates have also seen significant increases recently, driven by factors like rising electricity costs and wage hikes. If you’re working with a professional agent, they can negotiate on your behalf to secure the best possible terms.
Familiarisation Trips
If your company offers a “look-see” trip before your move, use this opportunity to explore different neighbourhoods and view potential homes. This will help you become familiar with Jakarta’s housing market and better understand your preferences. Spending time with various agents during this trip can also help you decide which brokerage service to use. Staying in touch with your chosen agent in the lead-up to your move will allow them to shortlist properties that meet your needs, streamlining the process once you arrive.
Finding a home in Jakarta can be either a daunting challenge or a well-managed process, depending on the resources and professionals you engage. By understanding the different types of housing agents and brokers, and by clearly communicating your needs, you can significantly improve your chances of finding the right home with minimal stress.