How to calculate rental yield on a Batumi apartment

A developer's brochure can tell you a starting price. It cannot, by itself, tell you what a Batumi apartment will actually earn once it is rented out, because that depends on rent, costs and occupancy, none of which a brochure controls. This guide sets out the gross and net yield method, the specific costs that apply to a rental in Batumi, and a worked example using numbers explicitly invented for the exercise, not a projection. For the general method in more depth, see our guide on how to calculate gross and net rental yield; this one applies it to Batumi specifically.

Gross yield: the easy number, and its limits

Gross yield is annual rent divided by purchase price. It is the number most often quoted, and the least informative one, because it ignores every cost between the rent you collect and the amount you actually keep. A gross figure can still be a useful starting filter when comparing two units at a glance, but it should never be the number you base a buying decision on.

Net yield: what actually sits between rent and profit

Net yield subtracts the real costs of owning and renting the unit from the rent, then divides by the full cost of acquiring it, not just the sticker price. For a Batumi apartment, the costs to account for typically include:

Management. A fee charged by whoever handles bookings, guest turnover and day-to-day issues, whether that is a hotel operator under a branded scheme or an independent manager.
Furnishing. A unit delivered "white frame" or unfurnished needs a fit-out budget before it can be rented at all; a unit delivered furnished, such as Radisson Blu Residences Gonio or Wyndham Residences, starts from a different cost base.
Maintenance and upkeep. Ongoing repairs, cleaning between short-term stays, and wear on furniture and fittings.
Vacancy. Periods with no tenant or guest, which a seaside resort city experiences unevenly across the year.
Tax. Georgia taxes rental income from a residential unit at 5% without expense deduction under article 81.2 of the Tax Code, against a 20% standard rate; confirm which regime applies to your situation with a tax adviser.
Acquisition costs. NAPR registration fees and any other cost incurred to close the purchase, added to the price when calculating the denominator.

Seasonality: a qualitative factor, not a quoted occupancy rate

Batumi is a Black Sea resort city, and a resort city's rental demand typically moves with the season rather than staying flat year-round. That is a structural feature of the market worth planning around, not a number to quote: no specific occupancy rate or seasonal split is published here, and any adviser who quotes one as a guarantee is overstating certainty the market does not offer.

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Developer projections are commercial, not a yield calculation

Several developers in Batumi publish return projections, expressed in various forms and percentages, attached to their projects. These are commercial marketing figures, not a substitute for the gross/net calculation above, and not a guarantee of any kind. If a developer or an adviser presents a projected return, the right response is to ask how it was calculated, run the gross/net method yourself with your own assumptions, and treat any gap between the two as a question worth raising before you reserve, not a detail to let pass.

A worked example, with invented numbers

To show the method rather than quote a real forecast, suppose, purely for this exercise, you bought a unit at Olympus Residence's published entry price of USD 62,000, and suppose, entirely invented for this example and not a real published figure, that it rented for a hypothetical USD 4,500 a year.

Gross yield: 4,500 ÷ 62,000, a purely hypothetical result that is not a forecast for this or any unit.
Now subtract a hypothetical management fee, a hypothetical maintenance allowance, a hypothetical vacancy adjustment for the off season, and the 5% rental tax under article 81.2, each one assumed for the exercise rather than quoted from any source.
The resulting net figure would sit meaningfully below the gross number, which is exactly the point: a net calculation, built on your own realistic assumptions rather than a developer's marketing figure, is the number that should actually drive a buying decision.

Run this same exercise with your adviser using your own rent assumption for any specific unit, not the invented numbers above, before you decide.

Working with Orven

Orven can walk you through the gross/net method for any specific unit in the Batumi collection, using your own assumptions rather than a developer's projection. Message Orven on WhatsApp at +971 52 776 1939 or by email at sales@orvenproperties.com with the project you are considering.

FAQ

What is the difference between gross and net rental yield? Gross yield is annual rent divided by purchase price, with no costs deducted. Net yield subtracts management, furnishing, maintenance, vacancy and tax from the rent, then divides by the full acquisition cost, giving a more realistic figure.

Should I trust a developer's published return projection? Treat it as commercial marketing, not a calculation. Ask how it was derived, then run the gross/net method yourself with your own rent and cost assumptions.

Does the 5% rental tax apply to every owner? It applies to a private individual renting a residential unit without deducting expenses, under article 81.2 of Georgia's Tax Code. Confirm which regime applies to your specific situation with a tax adviser.

Is Batumi's rental demand the same all year? No, as a Black Sea resort city it typically varies by season, though no specific occupancy rate is published here. Plan for seasonal variation qualitatively rather than around a quoted number.

Were the numbers in the worked example real? No. The rent figure and every cost in that example were explicitly invented to illustrate the method. Run the same calculation with your adviser using real numbers for any specific unit.