Batumi rental yield: how to compute NOI and IRR instead of the advertised percentage

Line 1. Gross potential rent

This is income at 100% occupancy at the actual nightly or monthly rate. Take the rate from booking history rather than from the listing: platforms show the achieved price, not the desired one.

Line 2. Paid occupancy and seasonality

Peak demand in Batumi runs from mid-June to the end of August; off-season occupancy and rates are noticeably lower. Annual occupancy of 60–70% for short-term rentals is a realistic benchmark for a well-managed property, not a guaranteed floor. Ask for monthly data for the last twelve months.

Line 3. Management, utilities and reserve

A management company takes a share of revenue (a 15–25% benchmark for short-term rentals), plus cleaning, consumables, utilities, internet and building maintenance fees. A reserve for repairs and furniture replacement is budgeted separately; otherwise the first broken air conditioner eats a month of income.

Line 4. Taxes

Individuals renting out residential property in Georgia can use a reduced 5% rate after notifying the Revenue Service; without registration the standard rate applies. Rates and procedures change, so confirm them on the Revenue Service website or with an accountant; we state the assumption explicitly in the model.

Line 5. Net operating income (NOI) and yield

NOI = paid rent − management − utilities and maintenance − reserve − taxes. NOI divided by the purchase price including transaction costs is the honest current yield. According to Galt & Taggart research, the average rental yield in Batumi compressed from 8.8% in 2024 to 7.4% in 2025 as supply grew, which is why fresh actual data matters more than last year's presentations.

Line 6. Exit and IRR

IRR accounts not only for rent but for the exit price, purchase and sale costs and the holding period. A moderate appreciation scenario (say 4% a year) with 2% costs on entry and 2% on exit paints a very different picture from "plus 30% in two years". Run base, conservative and optimistic scenarios, and see at which point the deal stops making sense.

What to request from the seller or the management company

A refusal to share this data is itself a verification result.

• Booking export with achieved rates by month for a year.
• The management agreement with tariffs and reporting rules.
• Utility and maintenance bills for winter and summer.
• Repair and equipment replacement history.

The GeoTrust calculator

The calculator on the home page breaks the return into these lines on your inputs: budget, holding period, occupancy, management, reserve, appreciation and transaction costs. It is illustrative and does not replace verification of a specific property, but it shows where every number comes from.