How Much Can You Earn from Airbnb Rentals in Batumi?
Payback Calculation and Examples of Profitability from Short-Term Rentals: Airbnb rentals in Batumi — A Practical Guide for Buyers of Primary Real Estate
Short-term rentals have long become one of the most attractive directions for investors who want to receive stable income from real estate.
Georgia is one of the countries where the short-term rental model works especially effectively:
tourist flow is growing, the season is expanding, and legislation remains favorable for property owners.
However, high profitability does not arise by itself. For an investment to work, it is important to understand the principles of payback calculation, evaluate real numbers, and consider the specifics of the primary market.
According to Sea Inside, most clients are interested specifically in new developments. This is due to the lower entry cost compared to the secondary market, modern layouts, transparent contract conditions, and the opportunity to buy a property at an early stage of construction with a good discount. But regardless of whether the buyer chooses primary or secondary real estate, the logic of calculating profitability remains the same.
How payback is calculated in short-term Airbnb rentals in Batumi
Payback in real estate is the time during which rental income compensates for the purchase and renovation cost. The formula is simple: divide the investment expenses by the net annual income.
Investment expenses usually include the price of the property, renovation, furniture, appliances, small household costs, and
registration fees. In the case of primary real estate, the factor of installment plans is added: the buyer can distribute payments over several years, which reduces the financial burden at the start.
Net income is profit after deducting all expenses. In short-term rentals, this is especially important because constant costs may be higher than in long-term rentals. The owner pays for cleaning, management, utilities, maintenance of equipment and furniture, as well as service fees if working through a management company or online platforms.
Most investors in Georgia use a management company — not only for convenience but also because in tourist cities competition is high, and self-management requires a lot of time. On average, management services cost from 20% to 35% of the income, and this must be considered in calculations.
Factors affecting profitability of Airbnb rentals in Batumi
Profitability depends on several key factors, and first of all — on the city and district. According to Sea Inside, the highest results are shown by properties in Batumi, Gonio, Tbilisi, and Kobuleti. In the mountains — for example, in Gudauri — profitability can also be high, but seasonality is stronger.
The characteristics of the property itself play an important role: size, layout, view, floor, concept of the complex, infrastructure, and the presence of a management company. Investments in studios or small one-bedroom units pay off faster — with the same occupancy, the entry cost is lower, and demand for compact apartments is the highest.
Seasonality should not be underestimated. In Georgia, the peak tourist flow falls in summer and autumn, but recent years have shown stable year-round occupancy — primarily due to Tbilisi and major resorts. This helps smooth seasonal fluctuations and makes income predictable.
Expenses Airbnb rentals in Batumi investors must consider
Investors, especially beginners, often forget about additional expenses that may consume part of the profit. These include:
- regular cleaning between stays
- laundry and textile replacement
- expenses for small repairs, lamp replacement, minor details
- utility payments
- management commission
- OTA platform fees (Booking, Airbnb)
- additional taxes if the property is registered as a business activity
On average, constant expenses for a studio range from $180 to $350 per month (including management). In high season these expenses are almost invisible, but in low season they can reduce net income, and this is important to consider in payback calculations.
Profitability of primary Airbnb rentals in Batumi real estate versus secondary
The primary market in Georgia is more attractive for investors focusing on short-term rentals for several reasons.
First, the entry cost is lower. Even within the same area, the difference between new developments and secondary housing can reach 15–30%. For an investor, this means a shorter payback period.
Second, new complexes are built with infrastructure that increases occupancy: swimming pools, gyms, reception, 24/7 security, co-working zones, children’s playgrounds. Guests choose such properties more often.
Third, primary developers offer installment plans — sometimes up to 3–4 years without interest. This allows the investor to start renting out the property after the building is completed without paying the full cost upfront.
The secondary market is also present in Sea Inside’s portfolio, but it is more suitable for those who want to start renting immediately or who do not want to wait for construction completion. However, it is important to understand that secondary properties often require renovation, and their infrastructure is limited.
How to estimate potential income from Airbnb rentals in Batumi: a real example
Let’s imagine purchasing a studio in a modern complex by the sea, costing around $80,000 with renovation and furniture. The average occupancy of such properties, according to Sea Inside, is 65–75% per year.
If in high season — June to September — the average nightly rate is around $70–90, and in the rest of the time — $30–45, we can calculate approximate annual income.
In high season, the property can bring from $3,000 to $5,000 per month, and in low season — from $700 to $1,500. On average, annual income may range from $18,000 to $25,000. After deducting expenses and management fees, net profitability is about 12–15% per year.
With this model, the payback period is approximately 6 to 9 years.
Why real Airbnb rentals in Batumi calculations differ from “banner numbers”
In advertisements, you may find profitability of 18–22% per year, but such numbers are usually based on maximum occupancy and peak season prices. In practice, profitability is always lower than advertised — and this is normal.
According to Sea Inside, investors who initially calculate realistically — 10–14% per year — often end up earning more. The reason is simple: when expectations are adequate, any changes in demand and price increases work in favor, not disappointment.
In addition, experienced management companies can optimize occupancy, work with different sales channels, and use dynamic pricing — increasing income by 10–30% compared to self-management.
How dynamic occupancy works for Airbnb rentals in Batumi and why it affects payback
Today most professional management companies use dynamic pricing. This means that the nightly rate is not fixed but changes depending on demand, events in the city, seasonality, holidays, weather, and competition.
For example, festivals and sports events can raise accommodation prices several times. In Batumi, such “peak” weeks are observed by Sea Inside every year — and they form a significant part of annual profit.
Therefore, properties in cities with active event calendars pay off faster.
How to choose a property for Airbnb rentals in Batumi that will bring stable income
Sea Inside has several recommendations that help clients choose truly profitable investments.
- It is better to choose areas with already established demand — on the coast or in central Tbilisi.
- Optimal size is studios and one-bedroom apartments, especially in primary real estate.
- Infrastructure is more important than the view. A swimming pool, reception, and management company influence occupancy more than windows with a panorama.
- Installment plans make the object more accessible and increase the real return on capital.
- It is always worth comparing real cases for similar properties — Sea Inside data allows evaluating occupancy for specific projects rather than averaging across the market.
These recommendations help reduce risks, increase income, and accelerate payback.
Increasing profitability of Airbnb rentals in Batumi: how investors earn more than “market average”
Investors most often increase profitability through several factors.
- Proper furnishing increases nightly rates by at least 10–15%.
- Photos and positioning on platforms directly influence the number of bookings.
- Using multiple sales channels provides a larger flow of guests.
- Seasonal price increases allow collecting maximum profit in the summer period.
- Complexes with hotel management or reception provide 10–20% additional occupancy.
These nuances may seem small, but in short-term rentals, small details form the final financial result.
Problems and risks Airbnb rentals in Batumi investors often forget about
Short-term rentals are a business, and they require attention. Among common risks:
- seasonal occupancy fluctuations, especially in small resort areas
- unprepared management staff or lack of management
- incorrect expectations regarding nightly rates
- poor renovation or wrong furniture choices
- excessive savings on management, which lowers the property rating
Sea Inside regularly explains to clients that quality management service is not an expense but a tool for increasing income.
Conclusion: Airbnb rentals in Batumi payback is real if calculated correctly
Short-term rentals in Georgia are a working investment tool that steadily brings income if you choose the property wisely, calculate realistically, and consider all factors.
Primary real estate shows better payback dynamics due to the low entry cost, modern complexes with infrastructure, and installment options. The secondary market remains an option but is more suitable for those who want to start renting immediately.
The main conclusion: payback is not a myth. It is a mathematical calculation that can be made in advance and which is confirmed in practice. And Sea Inside’s experience allows investors to make decisions based not on guesswork but on real statistics, occupancy, and the developed tourist market.
