Short term vs long term rentals in Georgia: which to choose?

What are short-term and long-term leases

When it comes to renting in Georgia, it is important to understand the difference between short-term and long-term rentals. These two approaches to renting have their own characteristics that can significantly affect your income and ease of property management.

Short-term leases

Short-term rentals usually involve letting a home on a days or weeks. This is a great option for tourist areas such as Batumi, where the flow of tourists does not dry up all year round. Imagine a flat by the sea in Batumi that generates rental income every day. It is like a small hotel that you can manage on your own.

Benefits:

• High profitability: The rental rate per day in Batumi can be as high as $30-70 in season. This is considerably higher than the monthly rental rate.
• Flexibility: You can easily adjust prices according to season and demand.

Disadvantages:

• Irregularity of income: Seasonal fluctuations can affect your income.
• Management: Attention must be given to daily management, cleaning and maintenance.

Long-term lease

Long-term rentals, on the other hand, involve renting out a home on a months or even years. This is a stable and predictable option. We recommend it to investors looking to minimise downtime and achieve a steady income.

Benefits:

• Stable monthly income: You get a fixed amount each month, which makes planning easier.
• Predictability: Long-term tenants tend to be more responsible and reliable.

Disadvantages:

• Less flexibility: If you want to sell the property or use it for other purposes, you will have to wait until the end of the contract.
• No capital increase: Unlike short-term rentals, there is no opportunity to increase income by changing prices.

If you want to know more about our offers and get advice on renting, leave a request on our website! We will help you choose the best option for your property investment in Batumi.

Rental market in Georgia

Georgia, and especially Batumi, is becoming a real magnet for tourists and investors. Every year the interest in renting property in this region only grows. Let's find out why this is so and what opportunities the rental market in Georgia offers.

Tourism boom in Batumi

Batumi, located on the Black Sea coast, receives more than 9 million guests annually. This creates a huge demand for short-term rentals, especially during the summer season. Imagine flats by the sea that rent for $30-70 per day in season. This is really favourable for those who want to make the most of the tourist flow.

Batumi also offers many entertainment and attractions such as the Botanical Garden, the Seaside Park and the famous statue of Ali and Nino. The city is also famous for its modern architecture and lively nightlife. All this makes it an attractive destination for tourists from all over the world.

The demand for accommodation is supported not only by tourists, but also by international events and festivals that are regularly organised in Batumi. This creates additional opportunities for investors who want a stable rental income.

Stable demand for long-term leases

The stable demand for long-term rentals in Batumi is not only due to the locals, but also due to the growing number of expats who choose this city to live and work in. Batumi attracts foreigners due to its mild climate, developed infrastructure and affordable housing prices.

In addition, the city is actively developing as a business centre. New offices and business centres are opening here, which attracts professionals from different countries. This creates a steady demand for quality housing, especially in areas with good transport accessibility and developed infrastructure, such as Novy Boulevard and the city centre.

Long-term rental prices range from $181 to $302 per month, depending on the neighbourhood. For example, renting in the city centre may be more expensive than in more remote areas.

Long-term rentals are also favourable for students studying at local universities and families looking for stable accommodation. This makes it a reliable choice for investors seeking a stable income without seasonal fluctuations.

Why investors choose Batumi

Investors pay attention to Batumi due to its strategic location on the Black Sea coast and its status as one of the fastest growing cities in the region. The city offers a variety of investment opportunities, including residential and commercial property.

Batumi is known for its favourable tax policy, which makes investments more attractive. Low property taxes and no capital gains tax incentivise international investors.

In addition, the city is actively developing infrastructure, including new roads, an airport and a seaport. This not only improves the quality of life for local residents, but also increases the region's tourist appeal.

Investors also value Batumi for its dynamic cultural environment and numerous international events that attract visitors all year round. All these factors contribute to the steady growth of property prices and stable rental income.

Our company recommends that you consider long-term leaseThis is especially important for those who want to invest with minimal risk. This is especially important for those who want to invest with minimal risk.

Pros and cons of short-term rentals

Short-term rentals are a popular choice for property owners in tourist areas such as Batumi. However, it's important to weigh the pros and cons before making a decision. Let's take a closer look.

Advantages of short-term rentals

High profitability: The rental rate per day in popular tourist destinations such as Batumi can be as high as $30-70 in season. This is considerably higher than the equivalent monthly rent. For example, a flat by the sea can generate more income in a week than in a month for a long-term rental.

Flexibility: You can easily adjust prices according to season and demand. This allows you to adapt to changes in the market and maximise your income.

Fully furnished and utilities included: Short-term rental flats are usually fully equipped with everything you need and utilities are often included in the price. This makes them attractive to travellers looking for comfort and convenience.

Disadvantages of short-term rentals

Irregularity of income: Seasonal fluctuations can have a significant impact on your income. In the off-season, when there are fewer tourists, the flat may be idle, reducing your overall profitability.

The need for day-to-day management: Short-term rentals require constant attention, from cleaning and maintenance to communicating with tenants. This can be tedious and requires additional resources.

Pros and cons of long-term leases

Long-term leasing is a reliable and predictable way to manage a property and is particularly attractive to investors seeking stability. Let's look at the main advantages and disadvantages of this approach.

Advantages of a long-term lease

Stable monthly income: Long-term rentals provide a fixed income each month, which simplifies financial planning. For example, renting a flat in Batumi can range from $185 to $307. per month, depending on the neighbourhood. This ensures predictability and reliability.

Predictability: Long-term tenants are usually more reliable and responsible. You can count on stable tenant relationships, which reduces stress and management costs.

Less downtime: Unlike short-term rentals, there is no need to constantly look for new tenants. This reduces the risk of downtime and ensures a constant income stream.

Disadvantages of long-term leases

Less flexibility: If you want to sell the property or use it for other purposes, you will have to wait until the end of the contract. This can be inconvenient if your plans change.

No capital increase: Unlike short-term rentals, there is no way to increase your income by changing prices. This can limit your profitability in the long term.

Why we recommend a long-term lease

Our company believes that for investors seeking stability and risk minimisation, long-term lease is the optimal choice. It provides a constant revenue stream and reduces the risk of downtime, making it more attractive in a fickle market.

Rental prices: short-term/long-term comparison

When it comes to choosing between short-term and long-term rentals in Batumi, understanding the price differences is key. Let's take a detailed look at what the market offers and how it can affect your investment.

Daily rental

Daily rental in Batumi is especially popular among tourists. In the summer season, when the flow of guests is at its peak, rental prices can be as follows $30-70 per day. This is especially true for such areas as New Boulevard, Khimshiashvili Street and the city centre, where the demand for housing by the sea is high.

Benefits:

• High profitability: You can earn more in season than with a long-term lease.
• Pricing flexibility: You can change the cost depending on demand.

Disadvantages:

• Irregularity of income: In the off-season, when there are fewer tourists, revenues can drop significantly.

Long-term lease

Long-term lease Offers stability and predictability. Prices range from $190 to $315 per month depending on the neighbourhood. This makes it attractive to locals and expats who are looking for reliable long-term accommodation.

Benefits:

• Stable income: A fixed monthly fee provides predictability.
• Less downtime: There is no need to constantly look for new tenants.

Disadvantages:

• Less flexibility: It is difficult to change the terms of a contract before it ends.

Tips for tenants: contract and additional costs

When you decide to invest in a rental property in BatumiIt is important to consider all the nuances of the contract and the costs associated with it. This will help to avoid misunderstandings and ensure the successful management of your property.

Formalisation of the contract

Written contract: Always have a written rental agreement. This will protect your interests and help you avoid misunderstandings with tenants. The contract should clearly spell out the terms of the lease, including the cost, terms, and responsibilities of the parties.

Fixed amount of rent: Make sure that the rental amount is fixed and spelt out in the contract. This will ensure stability of income and predictability of financial flows.

Terms and conditions of lease term change: Write in the contract the conditions under which the lease term can be changed. This is important if you plan to sell the property or use it for other purposes.

Additional costs

Utility payments: Clarify which utilities are included in the rent and which are paid by the tenant. This will help to avoid misunderstandings and additional costs.

Agency fee: Usually in Georgia, the agency fee is paid by the landlord. However, conditions may vary, so it is important to discuss this issue in advance.

Bail: In most cases, the tenant pays the first and last month's rent. Please note that the last month is usually non-refundable in case of early departure.

When you should consider buying a home

Buying property in Batumi can become not only a place for a holiday, but also a profitable investment. If you are considering a long-term stay or want to receive a stable rental income, buying a property may be the best solution.

Advantages of buying a property

Asset capitalisation: Owning a property allows you to accumulate equity. Unlike renting, where you pay for temporary use, buying a home gives you an asset that can grow in value over time.

Stable income: In tourist areas such as Batumi, short-term rentals can bring in 10-12% net income annually. This makes buying property attractive for investors seeking a stable income.

Freedom of control: As an owner, you can decide how you want to use the property - whether to rent it out, live in it or sell it.

When the purchase is particularly favourable

Long-term residence: If you plan to live in Batumi for a long time, buying a home may be more cost-effective than renting. It will allow you to avoid constant rent payments and accumulate capital. In addition, owning your own home provides stability and independence from the fluctuations of the rental market.

High tourist demand: With the constant demand for accommodation by the sea, buying a flat can provide a steady stream of rental income. This is especially true in popular neighbourhoods such as New Boulevard and the city centrewhere the demand for daily rentals is especially high during the summer season.

Rising property values: Batumi is actively developing as a resort and investment centre. As the infrastructure improves (new roads, parks, hotels, seafronts), property values tend to increase. Buying at an early stage can bring substantial profits on a subsequent sale.

State benefits and simplified conditions: Foreign citizens can freely purchase real estate in Georgia, as well as obtain a residence permit when purchasing an object of value from USD 100,000. This makes the investment particularly attractive in terms of migration flexibility.

Low maintenance costs: Compared to other states, Georgia has low property taxes and affordable utility and maintenance costs. This lowers the overall financial threshold for ownership.

Conclusion

Investing in property in Batumi offers many opportunities for stable income and capital accumulation. The choice between short-term and long-term rentals depends on your goals and strategy. Long-term lease provides a stable income stream and minimises the risks of downtime, making it the optimal choice for many investors.

Batumi, with its growing tourist flow and attractive property prices, offers unique opportunities for those who want to invest wisely. Buying a home here can become not only a reliable investment, but also a source of stable rental income.

If you want to learn more about investment opportunities in Batumi and get professional advice, leave an application on our website right now. We are ready to help you make the right choice and ensure a successful transaction.