Buying an Apartment in Batumi for Rental Income: Complete 2025 Guide

Batumi Rental Market Analysis 2025

Key Market Indicators

Demand Statistics:

• Tourist flow: 2.8 million people per year
  
  

• Average occupancy: 75–90% in high season, 50–65% in winter
  
  

• Rental rate growth: 8–12% per year
  
  

• Competition: moderate in central districts
  
  

Seasonality:

• High season (June–September): +40–60% above base rates
  
  

• Shoulder season (May, October): base rates
  
  

• Low season (November–April): –20–30% from base rates
  
  

Rental Demand Structure

Short-term rental (1–30 days):

• Tourists from Russia: 45%
  
  

• Tourists from Europe: 25%
  
  

• Local guests: 20%
  
  

• Business travelers: 10%
  
  

Long-term rental (6+ months):

• Expats & foreign specialists: 40%
  
  

• Local families: 35%
  
  

• Students: 15%
  
  

• Seasonal workers: 10%
  
  

Choosing an Apartment for Rental

Criteria for the Ideal Property

Location (40% weight):

• Distance to the sea (up to 800 m)
  
  

• Developed district infrastructure
  
  

• Transport accessibility
  
  

• Safety and cleanliness
  
  

Property characteristics (35% weight):

• Size: 25–65 m² (optimal)
  
  

• Layout: studio or 1–2 bedrooms
  
  

• Floor: 3–15 (avoid 1–2 and top floor)
  
  

• Condition: renovated or turnkey
  
  

Building infrastructure (25% weight):

• Elevator
  
  

• Concierge or management company
  
  

• Parking
  
  

• Internet & cable TV
  
  

• Pool or spa (bonus for short-term)
  
  

District Ranking for Rental Business

Detailed Analysis of Top Districts

Historic Center:

• Perfect for short-term rental
  
  

• Average rate: $40–80/day
  
  

• Occupancy: 80–95% in season
  
  

• Pros: maximum tourist traffic
  
  

• Cons: noise, wear, parking issues
  
  

New Boulevard:

• Universal: works for all rental types
  
  

• Average rate: $35–70/day, $500–900/month
  
  

• Consistently high occupancy
  
  

• Modern infrastructure
  
  

• Pros: prestige, sea view, entertainment
  
  

Yield Calculation by Rental Type

Short-term Rental — Maximum Profit

Example: 30 m² studio in the center for $45,000

Revenue:

• High season (120 days): $60 × 120 = $7,200
  
  

• Shoulder season (60 days): $40 × 60 = $2,400
  
  

• Low season (90 days): $25 × 90 = $2,250
  
  

• Total annual revenue: $11,850
  
  

Expenses:

• Utilities: $720/year
  
  

• Cleaning & linen: $1,800/year
  
  

• Platform fees (12%): $1,422
  
  

• Maintenance: $500/year
  
  

• Taxes: $2,370/year (20%)
  
  

• Total expenses: $6,812
  
  

Net profit: $5,038
ROI: 11.2% per year

Long-term Rental — Stability

Same property on long-term:

Revenue:

• Monthly rate: $550
  
  

• Annual revenue: $6,600
  
  

Expenses:

• Utilities: $360/year
  
  

• Management (5%): $330/year
  
  

• Maintenance: $300/year
  
  

• Taxes (small business 1%): $66/year
  
  

• Total expenses: $1,056
  
  

Net profit: $5,544
ROI: 12.3% per year

Mixed Model 70/30 — Optimal Solution

Scheme 70/30:

• 70% of the year — short-term
  
  

• 30% of the year — long-term
  
  

Advantages:

• Maximized income in peak season
  
  

• Stable cash flow off-season
  
  

• Less wear and tear
  
  

• Risk diversification
  
  

Legal Setup of Rental Business

Small Business Status — Best Choice

Eligibility:

• Annual turnover ≤ 30,000 GEL (~$11,100)
  
  

• Activity: property rental
  
  

• Tax: 1% of turnover
  
  

Required documents:

• Application to Revenue Service
  
  

• Passport copy + translation
  
  

• Lease or ownership documents
  
  

• Residence registration certificate
  
  

Processing time: 5 business days
Cost: free

Standard Taxation

Applied when:

• Turnover > 30,000 GEL/year
  
  

• You want VAT registration
  
  

• Large-scale rental business
  
  

Taxes:

• Income tax: 20% on profit
  
  

• VAT: 18% (if limits exceeded)
  
  

• Corporate profit tax: 20% for legal entities
  
  

Taxation Example

Revenue: $10,000/year

Small business status:

• Tax: $10,000 × 1% = $100
  
  

Standard taxation:

• Revenue: $10,000
  Expenses (documented): $3,000
  Taxable profit: $7,000
  Tax: $7,000 × 20% = $1,400

Savings with small business status: $1,300

Preparing the Apartment for Rental

Mandatory Equipment

Furniture & appliances:

• Orthopedic mattress bed
  
  

• Sofa or armchairs
  
  

• Dining table & chairs
  
  

• Wardrobe
  
  

• Fridge, stove, microwave
  
  

• Washing machine
  
  

• TV with cable
  
  

• Air conditioner
  
  

Base furnishing cost: $5,000–8,000

Extra for short-term rental:

• High-quality bedding (2–3 sets)
  
  

• Towels (4–6 pcs)
  
  

• Cookware & utensils
  
  

• Hairdryer, iron, ironing board
  
  

• Wi-Fi router
  
  

• Safe
  
  

Additional cost: $1,000–2,000

Design & Interior

Principles:

• Neutral color palette
  
  

• Durable, wear-resistant materials
  
  

• Minimalism & functionality
  
  

• Good lighting
  
  

• Quality plumbing
  
  

Common mistakes:

• Overly personalized decor
  
  

• Expensive fragile items
  
  

• Lack of storage space
  
  

• Poor sound insulation
  
  

• Saving on mattresses & bedding
  
  

Rental Business Management

Self-Management

Suitable if:

• You live in Batumi or visit regularly
  
  

• Ready for daily tasks
  
  

• Fluent in Georgian or English
  
  

• Service industry experience
  
  

Duties:

• Listing on platforms
  
  

• Guest communication
  
  

• Check-in / check-out
  
  

• Problem solving
  
  

• Cleaning supervision
  
  

• Financial reporting
  
  

Yield: maximum (100% profit)

Property Management Companies

Services include:

• Professional photos
  
  

• Listing on all major platforms
  
  

• 24/7 guest support
  
  

• Check-in/out
  
  

• Cleaning & linen change
  
  

• Minor repairs
  
  

• Financial reports
  
  

Fees:

• Short-term: 20–30% of revenue
  
  

• Long-term: 8–12% of revenue
  
  

Top management companies in Batumi:

AirBnB Management Batumi

• Focus: short-term
  Fee: 25%

Batumi Rent Service

• Universal
  Fee: 15–20%

ORBI Property Management

• Premium & ORBI projects
  Fee: 20–25%

Online Platforms

Short-term:

Airbnb • Booking.com • MyPlace.ge

Long-term:

SS.ge • Korter.ge

Risk Management

Main Risks & Mitigation

Financial risks → vacancies, non-payment, damage

Operational risks → breakdowns, neighbor conflicts

Legal risks → tax changes, disputes

Mitigation: insurance, deposits, diversification, careful tenant screening, reserve fund

Yield Optimization

Ways to Increase Income

• Quality renovation & furniture (+15–25% rate)
  
  

• Pro photos (+20–30% bookings)
  
  

• Fast response & extra services
  
  

Cost Reduction

• Small business tax regime
  
  

• Automation, energy-saving tech, long-term contractor deals
  
  

Step-by-Step Launch Plan

Stage 1: Planning (1 month) → budget, district, purchase

Stage 2: Preparation (1–2 months) → renovation, documents, photos

Stage 3: Launch (1 month) → listings, first bookings

Stage 4: Optimization (ongoing) → analytics & scaling

Key Performance Indicators

Track: occupancy %, ADR, net profit, reviews

Targets: 70%+ occupancy, 10%+ ROI, 4.5+ rating

Conclusion

Buying an apartment for rental in Batumi is a proven way to generate 10–15% annual passive income.

Success formula:
Right location + Quality preparation + Efficient management = Stable profit

Minimum starting capital: $50,000–70,000
Payback period: 7–10 years
Expected yield: 10–15% per year

With a professional approach, a Batumi rental business becomes a reliable long-term passive income source.

Article prepared by: Batumi rental business experts
Data current as of: September 2025
Yield calculated from real market performance