What Are the Management and Maintenance Costs?

Before you can judge whether Tbilisi’s headline 8–9% gross rental yield actually works for you, it helps to have a realistic sense of the recurring costs that sit between gross rent and what you actually keep.

Property management fees

If you use a professional management company or agency — the common route for owners who live abroad, as covered in our companion article — expect an ongoing percentage of monthly rent as the primary cost. The exact rate varies by provider and scope of service (basic rent collection vs. full-service including maintenance coordination and tenant sourcing), so it’s worth getting written quotes from a few providers, including established local agencies, before committing to one.

Building and common-area fees

Most modern apartment complexes in Tbilisi charge a monthly or annual building maintenance fee covering shared services — elevator upkeep, common-area cleaning, security, and building infrastructure. This is a fairly predictable, modest cost but should be factored into your net calculation, particularly for newer complexes with amenities like gyms, parking, or 24-hour security, where fees tend to run higher than older, no-frills buildings.

Repairs and wear-and-tear

Ongoing maintenance — appliance repairs, plumbing issues, minor fixes between tenants — is an unavoidable, if irregular, cost of being a landlord. It’s sensible to budget a modest annual reserve (commonly modeled as a small percentage of annual rent) rather than treating each repair as a surprise expense.

Turnover costs

Every time a tenant leaves, there’s typically some cost to prepare the unit for the next one: cleaning, touch-up painting, minor repairs, and sometimes re-photographing the listing. Districts and unit types with faster tenant turnover (studios, short-term rentals) will accumulate these costs more frequently than long-staying family tenants in a two-bedroom.

Furnishing upkeep

If your unit is furnished — which, as covered elsewhere, meaningfully helps leasing speed in expat-facing districts — furniture and appliances depreciate and eventually need replacement. This is a lumpier, less frequent cost but should be budgeted for over a multi-year holding period.

Putting it together

A reasonable way to model your net position: start with gross rent, subtract the 5% flat income tax (assuming you’re properly registered as a landlord), subtract your management fee if applicable, subtract building fees, and set aside a modest annual maintenance reserve. What remains is a far more honest picture of your actual return than the gross yield figure alone.

The takeaway

None of these costs individually is large, but stacked together they meaningfully narrow the gap between an 8.5% gross yield and what you actually bank each year. Owners who budget for these costs from day one tend to make far better pricing and management decisions than those who discover them reactively.

Data referenced: General cost structure commentary for Tbilisi residential rental management (2025–2026); Georgian landlord tax registration framework.