Renting out in Batumi: what is left after the management company
Guests paid $7,200 over the year. After costs and the reserve, the owner had $1,920 under one contract and $2,055 under the other. In an ad this is a 12% yield; what is left against the money invested is 2.4% before tax.
Deal Breakdown · a 5-minute read
The figures below are a worked example. Real companies and platforms have different terms: check them against your own contract.
The example apartment
An apartment in Batumi is let by the night through a management company. The full entry cost is $79,205 (we showed how it adds up in the article "An apartment in Georgia: the full cost before the first rent").
- 180 nights a year are booked, 3 nights per guest on average, which makes 60 stays.
- The average nightly rate is $40. As a reference point: Galt & Taggart puts the average nightly rate in Batumi in 2025 at about $35.6.
- Revenue from guests: 180 × $40 = $7,200. In the example, guests do not pay for cleaning as a separate line. If they do, that amount appears both in revenue and in the cleaning cost; check how the manager's report shows it.
Two contracts on the same revenue
| Line | Contract A: 20% of guest revenue | Contract B: 25% of the payout after platform and cleaning |
|---|---|---|
| Revenue from guests | $7,200 | $7,200 |
| Platform fee, 15% (assumption) | −$1,080 | −$1,080 |
| Cleaning and linen, 60 × $15 | −$900 | −$900 |
| Management fee | −$1,440 (20% of $7,200) | −$1,305 (25% of $5,220) |
| Utilities and internet, $100 a month | −$1,200 | −$1,200 |
| Building fees | −$300 | −$300 |
| Reserve for replacements, 5% of revenue | −$360 | −$360 |
| Available to the owner after costs and the reserve, before tax | $1,920 | $2,055 |
The $360 reserve is not spent: it is your money, set aside for replacements. If nothing breaks during the year, it stays with you.
Contract B has the higher percentage, yet the owner keeps more money. The reason is the base: the 25% is charged on an amount from which the platform and cleaning have already been deducted.
Five questions for the contract
- What amount the percentage is charged on: guest revenue, the platform payout, or the amount after cleaning?
- Who pays for cleaning and linen: included in the percentage or a separate line?
- Who pays utilities in short-term letting? Almost always the owner, because guests do not pay them.
- What counts as a repair, and who approves it? A broken air conditioner in July can eat a month of profit.
- What do your own nights cost? If you stay in the apartment for two weeks in high season, that is 14 nights not sold to guests.
How not to deduct the same thing twice
A manager's report may show two revenue figures: what guests paid and what came from the platform. If the platform has already kept its fee, do not deduct it a second time. Check the report against the payments to your account: the amount on your card and the "payout" amount in the report should match.
Guaranteed income
Sometimes a company offers a fixed amount per year. This changes your risk, not the arithmetic: read what happens if occupancy falls, who pays for repairs and how long the guarantee lasts. We do not assess specific companies or their guarantees; that is a question for the contract and a lawyer.
What the calculator shows
The calculator does not yet handle short-term letting with a platform and a manager. Its first screen covers only ordinary monthly rental, where the tenant pays the utilities. So you cannot reproduce the table above in it, and we do not suggest bending the figures to fit.
What you can do is compare with another option for the same apartment: long-term rental at $450 a month, one empty month at each change of tenant, a letting fee per new tenant. The calculator below is filled in this way. It is a different scenario with different costs, not a recalculation of our table. Still, it is worth comparing its result with the table before you sign with a manager.
Long-term rental is usually simpler: one tenant, who pays the utilities. But there is a letting fee for each new tenant. We covered it in the column "The agent gets paid for every tenant".
The calculation below: not the short-term letting from the table, but another option for the same apartment. Long-term rental, price $60,000, rent $450 a month, a tenant from day one, and at each change of tenant every 2 years, 1 empty month and a letting fee.
The calculator with this property's figures
The same calculation as on the home page. Change any figure — the answer recounts.
Questions and answers
How much is the platform fee really? It depends on the platform and the payment model you choose. The 15% in the example is an assumption, not the rate of any particular platform.
What tax do you pay on short-term rental in Georgia? It depends on your status and tax regime. The calculator includes the tax on rent in the property's country. Tax in your country of tax residency is added in the full calculation.
This is a worked example. It is not investment, tax or legal advice. We have not reviewed the contracts of any specific management company.
REAL ESTATE I YIELD I TAXES · Levelvale
Sources
This is a calculation, not investment, tax or legal advice.
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