How to Calculate Rental Yield on Property in Batumi

Gross Rental Yield = annual rental income ÷ property price × 100%.

For example: an apartment priced at $100,000, rent of $700 × 12 months = $8,400 → gross yield of 8.4% a year.

At first glance it's simple. But this is exactly where the main mistake creeps in: gross yield doesn't show how much money the owner actually keeps.

Out of that $8,400, management, taxes, complex upkeep, repairs, utility costs and vacant periods may still need to be paid.

Say an apartment from a developer costs $80,000. That doesn't mean the investment is $80,000.

On top of the purchase, you can add:

If $95,000 has actually been invested once the apartment is ready, calculating yield off $80,000 is no longer correct. This is one reason a developer's advertised calculation and an owner's actual yield can differ.

We calculate yield from the full entry budget for the unit, not just the developer's price-list figure.

Let's use a hypothetical example, so it isn't mistaken for a real complex's actual figures.

The unit's price: $90,000. Renovation and furnishing: $10,000. Full investment: $100,000.

Say the potential annual rental income is $10,000.

The advertised calculation might look like this: $10,000 ÷ $90,000 = 11.1%.

But the investor actually put in $100,000: $10,000 ÷ $100,000 = 10%.

Now factor in management, tax, upkeep, vacancy and running costs. Only what's left after that shows the specific investment's net yield.

So a promise of "10% a year" with no underlying figures says almost nothing about a unit's economics.

Galt & Taggart records two things happening at once: property prices are rising, while rental rates are rising much more slowly.

In 2025, primary-market prices rose by an average of 9.4%, while short-term rental ADR stayed roughly at the previous year's level — around $35.6 a night.

As a result, average rental yield fell from 8.8% to 7.4%. Analysts also expect further pressure on yield as a large number of projects under construction complete and new apartments reach the rental market.

A detailed comparison of districts — prices, type of development and demand — is available in our separate guide to choosing a district in Batumi.

So don't compare the models like this: $700/month vs. $70/night — compare them like this instead: actual annual income after occupancy and costs, against long-term rental's actual annual income.

The 5% residential-rental rate and the sale rules are set out in Georgia's Tax Code. The Code provides different property-tax rate ranges depending on family income, so it's best to check the tax situation individually for a specific buyer.

NAPR currently lists property registration at GEL 150 for 4 business days, GEL 270 for 1 day, or GEL 350 for same-day filing.

Tax rules can depend on the owner's status and how the property is used. Before a deal, we check the current conditions for the specific buyer.

If a seller only shows a final "10% a year," ask for the underlying assumptions: what rental rate → what occupancy → what costs → is furnishing included → is tax accounted for → is a management commission accounted for. Without that data, the percentage is practically impossible to verify.