The rental market Georgia has moved from “nice extra income” to a serious investment tool, especially in Tbilisi and Batumi where gross yields around 7–8% are still above most European averages. To turn this potential into stable profit, landlords need to understand formats, taxes, platforms and basic property management – not just buy an apartment and hope for the best.
Types of Rental Properties
For landlords, Georgia offers three main formats of rental properties:
- classic residential apartments (studios, 1–2 bedroom units);
- serviced apartments and apart‑hotels;
- commercial units (shops, offices) used as income add‑ons to a residential portfolio.
Most individual investors focus on residential units, where data is the clearest. Global Property Guide puts average gross rental yields in Georgia at about 7.53% in early 2025, with Tbilisi averaging 7.78% and Batumi 7.28%, depending heavily on district and apartment size. Smaller units often perform better: in 2025, studios in affordable Tbilisi districts like Didi Digomi and Nadzaladevi exceeded 8–10% gross yields, while compact 1‑bedroom apartments in Batumi could exceed 8% in some areas.
Long-Term vs. Short-Term
When it comes to strategy, landlords tips in Georgia usually start with one choice: long‑term vs. short‑term rentals.
Long‑term rentals in Tbilisi are described by local analysts as “unsexy but beautifully reliable”: they attract students, expats and families for 12‑month leases, providing stable cash flow with fewer “mood swings”. Districts like Saburtalo, Vake and central areas see consistent year‑round demand, and yield analyses show long‑term gross returns around 6–8% depending on purchase price and fit‑out.
Short‑term rentals – Airbnb, Booking and similar platforms – can deliver higher peak income but at the cost of volatility and work. In Batumi, studies comparing Airbnb performance in Batumi vs. Tbilisi show that many hosts earn a large share of their annual revenue in July–August, while the rest of the year is much quieter. ExpatHub and other guides note that well‑managed short‑term units can outperform long‑term by a few percentage points of gross yield, but only if occupancy is actively managed and pricing is dynamic across seasons.
In practice, Sea Inside often sees landlords using a hybrid model:
- long‑term tenants in Tbilisi for baseline stability;
- short‑term focused units in Batumi or on the coast to capture high‑season upside.
Legal Requirements
The good news for landlords is that property management Georgia operates in a relatively simple legal and tax environment. Foreigners and locals have the same rental rights: you can rent out your apartment to individuals or companies with a standard lease contract, with no special licensing for long‑term residential lettings.
For short‑term rentals and apart‑hotels, regulation has been tightening but remains workable. In major cities and resort zones, local authorities can introduce building‑level or zoning rules, and some complexes require owners to sign unified rental agreements with one management company to avoid “hotel chaos”. Landlords should also consider:
- registering as a 5% rental taxpayer for residential income;
- including clear house rules and damage clauses in contracts;
- complying with building regulations (fire safety, noise, guest registration where required).
Sea Inside’s lawyers typically advise new landlords to have bilingual (Georgian + English) lease templates and to register key agreements formally when large sums or long terms are involved.
Managing Tenants
Good yields are not only about buying well – they depend heavily on how you manage tenants.
For long‑term rentals, practical tips include:
- Screen properly– request proof of income, previous landlord references when available, and at least one month’s deposit.
- Use clear contracts– specify rent amount, payment date, utility responsibility, indexation rules and inspection rights.
- Choose tenant profile for the area– students and young professionals fit central and Saburtalo units, while families often prefer quieter districts with schools and parks.
For short‑term rentals, platforms dominate operations:
- Airbnb and comare the core for tourist rentals in Tbilisi and Batumi, with Airbnb generally stronger in foreign traffic and Booking effective for regional guests.
- Other channels include local portals (ge, MyHome.ge) and niche booking sites used by digital nomads.
Many foreign owners choose to outsource day‑to‑day property management Georgia to local agencies that handle listings, check‑ins, cleaning, minor repairs and guest communication in exchange for 15–30% of revenue. Sea Inside often recommends this route for investors who do not live in Georgia full‑time, as it protects reviews and occupancy while freeing the owner from being “on call” 24/7.
Taxes and ROI
Understanding taxes is crucial for correctly calculating ROI in the rental market Georgia.
For individuals renting residential property, Georgia offers a very simple regime:
- If you register as a residential landlord with the tax authorities, you can opt to pay 5% tax on gross rental income, with no additional income tax on that rental stream.
- This flat 5% applies whether your tenant is an individual or a company, as long as the registration is done correctly and the property is used for residential purposes.
On capital gains, resale rules also matter for long‑term planning:
- If you sell a property within two years of purchase, any gain is typically taxed at 20% for individuals.
- If you hold the property for more than two years, the capital gain is exempt from personal income tax.
When Global Property Guide reports average gross yields of around 7.5–8% in Tbilisi and Batumi, they also note that net yields are usually 1.5–2 percentage points lower after maintenance, vacancy and basic costs. With Georgia’s 5% flat rental tax, many owners can still realistically target net cash yields of 5–7% in good buildings, which remains attractive compared to many Western markets.
Sea Inside’s internal models for clients usually include:
- realistic occupancy (not 100%);
- platform commissions (Airbnb/Booking);
- management fees if using an agency;
- a maintenance reserve for small repairs and periodic refurbishments.
Practical Landlords Tips
To get the most from the rental market Georgia, landlords can follow a few practical principles drawn from recent data and field experience:
- Match city and format
- Tbilisi: stronger for year‑round long‑term tenants (expats, students, remote workers).
- Batumi: better suited to seasonal short‑term plus off‑season long‑term or mid‑term stays.
- Optimise apartment size and layout
Yield tables show that studios and 1‑bedroom units often outperform larger apartments on a percentage basis, both in Tbilisi and Batumi. - Invest in presentation
On platforms, good photos, modern furnishings and fast Wi‑Fi can increase occupancy and nightly rates far more than their one‑time cost. - Stay compliant on tax
Register for the 5% residential rental regime, keep simple income records, and avoid cash‑only “off‑book” arrangements that complicate sale or residency applications later. - Think in net, not gross
Use current yield data (around 7–8% gross in 2025) and subtract realistic expenses to understand whether a specific unit – at its actual price – meets your target return.
- Optimise apartment size and layout
For overseas owners, Sea Inside typically recommends building a rental strategy before buying: decide on long‑term vs short‑term focus, choose a district that fits that plan, and then run numbers with current rent data and tax rules. Done this way, landlords tips become a clear action plan, and renting out an apartment in Batumi or Tbilisi is a structured business rather than a gamble on “tourists will always come.”
