Rental Yield in Batumi: Calculations and Examples

Rental yield in Batumi: practical guide 🏝️

Batumi remains an attractive market for investors who want rental income and occasional personal use. This guide explains how to calculate rental yield, what costs to include, real-life scenarios, and actionable tips to improve returns while managing risks.

Basic formulas to calculate yield 📊

• Gross annual yield = (annual rental income / purchase price) × 100.
• Net annual yield = ((annual rental income − annual expenses) / purchase price) × 100.

Important: use realistic occupancy rates — for short-term rentals, a seasonal property may not be rented every night of the year.

Typical expenses to include 💸

• Utilities and HOA fees (if not paid by tenants).
• Property management fees or agent commissions.
• Maintenance, repairs and occasional refurbishments.
• Taxes and legal fees — Georgia has investor-friendly policies, but confirm current rules.
• Marketing, photography and platform commissions for listings.

Tip: keep a repair reserve fund as a percentage of annual rent or a fixed yearly amount.

Short-term vs long-term rentals — pros and cons 🕒

• Short-term (vacation) rentals: higher daily rates, higher turnover, more management and cleaning costs, and noticeable seasonality.
• Long-term rentals: more stable monthly income and fewer day-to-day operations, but typically lower monthly rates.

A mixed approach can help: keep some units on long-term leases for stability and others for short-term bookings to maximize seasonal upside.

Example scenarios (illustrative) 📈

Scenario A — long-term rental (illustrative):

• Purchase price: ranges from modest to premium depending on location and condition
• Monthly rent: depends on neighborhood and apartment quality
• Management and maintenance: a portion of rental income

Scenario B — short-term rental (illustrative):

• Higher peak rates during tourist season, lower in shoulder months
• Average occupancy may be well below full capacity

These scenarios show how assumptions about occupancy and expenses influence net yield — use them to test conservative and optimistic cases.

Mortgage effects and financing considerations 🏦

Using a mortgage changes cashflow. Compare net yield against mortgage costs and run sensitivity analyses with different interest rates and loan terms. Sometimes using leverage can scale returns, but it increases risk.

How to boost rental yield — practical tips 🔨

• Improve interior, photos, and listing presentation to increase nightly or monthly rates.
• Offer flexible options: long-term contracts with periodic short-term rentals.
• Optimize operating costs without cutting guest experience.
• Choose locations with improving infrastructure and strong demand drivers.

Risk management strategies 🛡️

• Diversify across property types and locations to reduce seasonality risk.
• Screen tenants, use contracts, and consider deposits and guarantees.
• Maintain an emergency fund for major repairs and consider insurance where available.

Quick checklist for selecting a Batumi property ✅

• Evaluate location: proximity to beach, transport, and amenities matters.
• Compare actual rental records (not just listing prices) for similar properties.
• Consider professional property management if you are remote.

If you want a tailored calculation for your budget and goals, we can prepare a personalised analysis and property shortlist. Browse listings at https://buyhome.ge/en/search or contact us for help choosing the right investment.