Investing in Apartments with Guaranteed Income

Investing in apartments with guaranteed income — quick overview 📌

A guaranteed income investment is when a buyer receives a contractual, predictable return for a set period. Developers and management companies in Georgia — especially in resort areas such as Batumi — often offer these schemes to attract investors.

How it typically works

• The developer sells an apartment and promises a fixed payment or a guaranteed share of rental income for a specific term.
• Agreements may include buyback options, full property management, or revenue-sharing arrangements.
• The guaranteed period is limited; afterwards, payments usually switch to market-based rental returns.

Key advantages ✅

• Predictable cash flow makes financial planning easier.
• Low operational involvement for the owner — the management company handles bookings, maintenance and tenant relations.
• The model can suit investors who also want occasional personal use of the property under agreed terms.

Risks to consider ⚠️

• Guarantees depend on the developer or operator’s solvency — this is the main counterparty risk.
• Contract clauses may reduce payments in specific circumstances (force majeure, bankruptcy, or poor occupancy).
• After the guaranteed term ends, actual returns may be lower, depending on market demand.

Due diligence checklist 🔎

1. Company credentials: history of completed projects and financial reputation.
2. Building permits, certificates of completion and property registration documents.
3. Contract terms: payment schedule, duration of guarantee, early termination clauses.
4. Scope of management services: cleaning, repairs, marketing and commission rates.
5. Feedback from actual owners and independent market sources.

Tax, currency and legal notes for investors

• Tax treatment of rental or guaranteed payments depends on your residency and the legal structure of ownership.
• Consider currency conversion and transfer rules if payments are made in foreign currency.
• Always consult a local lawyer and accountant before signing.

Practical step-by-step buying process 🛠️

1. Clarify your goal: steady income, holiday use, or capital growth.
2. Select the location and type of apartment (resort vs city center).
3. Request the draft guarantee agreement and have it reviewed by a lawyer.
4. Confirm who manages the property and how fees are deducted from income.
5. Complete the purchase, register ownership and set up payment channels.

Typical income structures (guidance) 💡

• Fixed periodic payments (monthly/quarterly/annual) in the contract currency.
• Guaranteed minimum plus a share of actual rental profits.
• Buyback or resale options set by contract for exit planning.

Is this model right for you?

• It fits investors who value predictable returns and prefer passive ownership.
• It requires trust in the developer/operator and a clear understanding of contractual limitations.

If you are considering options in Batumi or other Georgian cities, BuyHome can help with property search, document checks and risk assessment. Browse listings on our English site: https://buyhome.ge/en/search

Contact us for a calm, professional review of any guaranteed-income offer — we’ll help you understand the contract and choose a reliable property without unnecessary risk. 📞