Upwards of 50,000 apartments are sold every year in Georgia’s two largest urban centers, Tbilisi and Batumi, almost 40% to foreign nationals. Although some no doubt end up living in the apartments, state statistics on the issuance of residence permits would seem to suggest that the vast majority are making an investment. Here you have your target audience for property management, especially those who own more than one property.
What is property management?
Property (or real estate) management entails the transfer of the duties that come with managing real estate (commercial or residential) to a third-party, usually an agency, specializing in everything from cleaning to accounting and acting in the interests of the owner.
In some ways, property management can be compared to entrusting your large portfolio of stocks and bonds to an experienced stock market professional to increase income.
According to INREV, more than EUR 3.6 trillion worth of real estate worldwide is managed professionally.
What exactly does a property manager do?
- Home staging: preparing the rental property by decluttering it, giving it a deep cleaning, and even furnishing it to make it more attractive to prospective tenants. Involves a professional photoshoot
- Advertising on MyHome.ge and SS.ge (for long-term rentals) or even Booking.com and Airbnb (if you’re interested in short-term rentals)
- Conducting a regular analysis of the market and updating prices to ensure you maintain that balance between monthly profit and stable occupancy
- Communicating with tenants: overseeing the move-in, drafting rental agreements, resolving disputes, etc.
- Property maintenance: repair work, cleaning – not looking to become slumlords, after all
- Paying utilities and taxes. In Georgia, income tax on rental property is 5%, and the cost of electricity, water, and heating tends not to exceed USD 75 per month for apartments of 85 m² or less
- Managing and reporting income with a detailed monthly report to ensure transparency
Property management services can help you choose an apartment for investment in Georgia. PB Services provides prospective owners with help finding the right apartment, appraising its value, and getting through the purchase process and subsequent management unscathed. Get more information during a free consultation.
How much you can expect to make on residential property in Georgia
According to Galt & Taggart’s report for June 2025, investors can expect an annual return in US dollars of about 8.4% on long-term rentals in Tbilisi. TBC Capital places it at 8.7% (bearing in mind that location is king, and a square meter costs twice as much to rent in Vake as in Samgori, just for example).
Global Property Guide put average yields in Georgia (not just Tbilisi) at 7.5% in August 2025, placing Georgia squarely among the world’s top 10 most profitable locations. Just for comparison, long-term rentals brought 7.1% in Indonesia, 6.5% in the USA, 4.9% in the UAE, and 4.2% in Estonia. Georgia also outpaced its neighbors, with the capital of Azerbaijan, Baku, yielding 5.1% and the Armenian capital of Yerevan 6.6%.
Short-term rentals are also an option worth considering. According to Airbnb, owners of property located in Tbilisi earn roughly USD 39 per day and USD 8,500 annually (on average) for an occupancy rate of 60% (in other words, if the apartment is occupied 219 days a year). Apartments intended for daily rental don’t need to be big (50 m² is generally enough), meaning an annual return of about 14%, especially if you choose the right property, is entirely within the realm of possibility.
Whether office, warehouse, or retail premises, commercial real estate in Batumi and Tbilisi are also capable of providing returns in excess of 10%, the likes of which we have written about here.
Property management fees
A property management agreement provides for the manager to receive a part of the rent as a commission. The exact amount depends on the terms (services provided) but usually ranges from 10 to 25%.
It is important to stipulate that your property manager take commission on profit only. If you didn’t make anything on the apartment that month, there shouldn’t be any commission either. That’s how we do it at PB Services.
A property management agreement is essential and in addition to commission also spells out the manager’s duties and powers, the term, and the procedure for transferring income, among other things.
Advantages of property management
- Someone else takes care of irksome, repetitive tasks so you can spend your time on other things, all while you continue to earn income on your property
- You get the chance to invest in Georgia’s growing economy and tourism sector without ever having to actually visit the country (though you certainly can if you want to!). You can also buy property online (and use cryptocurrency to do so)
- A large real estate portfolio can be difficult to manage: enter property management agency
- You minimize downtime as your manager monitors occupancy and adjusts prices according to supply and demand
- Your team of advisors, analysts, and realtors tap their intimate understanding of the ins and outs of the Georgian real estate market to maximize your profit
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As in the statement often attributed to 19th century financier Andrew Carnegie: “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.” Of course, there are lots of ways to make money in the 21st century, but Savills Research would have you remember that with a valuation of nearly USD 400 trillion (for comparison, the capitalization of all stocks comes to a measly USD 100 trillion), real estate is still the kingmaker par excellence. That’s why asset managers exist.
If you have any questions about property management in Georgia, don’t hesitate to use the form below to get in touch with the capable professionals at PB Services.