The Core Functions of a Property Manager
A full-service property manager in Georgia acts as your local representative. Their responsibilities include finding and vetting tenants, collecting rent, and handling maintenance requests. They serve as the tenant's primary contact, preventing you from receiving calls at 3 AM about a broken water heater.
Managers also handle the financial and administrative aspects of your property. This involves paying utility bills, or ensuring the tenant pays them, managing security deposits, and providing you with monthly financial statements. A key service for foreign owners is filing the 5% rental income tax with the Georgian Revenue Service on your behalf, a task challenging to manage from abroad.
Finding and Screening Tenants
Tenant sourcing is a core function of property management. Managers advertise vacant properties on local portals such as myhome.ge and ss.ge, in addition to using social media and their own networks. They conduct showings and manage all inquiries.
Tenant screening in Georgia differs from practices in many Western countries. Formal credit history checks are not standard. A good manager instead verifies a potential tenant's employment, requests references, and conducts an interview to assess reliability. A well-drafted, bilingual lease agreement provides your primary protection and is a standard part of a manager's service.
Managing Finances and Rent Collection
Managers collect monthly rent, typically paid in GEL via bank transfer. They then deduct their fee (usually 10-15%) and any expenses incurred for repairs. The remaining balance is transferred to your bank account.
Most owners open a Georgian bank account to simplify these transactions. Receiving rent in GEL and then transferring it to a foreign currency account will involve conversion fees. Your manager will provide a monthly statement detailing all income and expenditures. They must have your tax identification number to register your rental activity and pay the 5% tax for you.
Maintenance, Repairs, and Utility Bills
When something breaks, the tenant calls the manager, not you. The manager will have a network of trusted handymen (`khelosani`) for plumbing, electrical, and appliance repairs. The management agreement should specify a spending limit for repairs; anything above that amount requires your direct approval.
While tenants are usually responsible for paying their own utilities, the manager oversees this process. They ensure bills for electricity, gas, water, and internet are paid on time to prevent service interruptions. This is important because utility accounts are tied to the property and ultimately the owner's responsibility. Payments are often made through local pay-box terminals or online banking apps.
How to Choose a Management Company
Selecting a good manager requires careful consideration. Referrals from other foreign owners often provide the most valuable leads. Many large real estate agencies maintain in-house management departments, offering a potentially reliable option.
Before signing any contract, ask for references from current clients, especially other foreigners. Confirm the company is a registered legal entity, not an individual. The contract should clearly outline the fee structure, included services, termination clauses, and the process for authorizing expenses. Clarify what happens during vacant periods; most firms do not charge their percentage fee without a tenant, but some may apply a small flat fee for oversight.
FAQ
Can I manage my Georgian property myself from abroad?
It is extremely difficult. While you can pay some bills online, you cannot effectively show the apartment, vet tenants, handle emergencies, or deal with administrative tasks that require a local presence and fluency in Georgian.
What happens if a tenant needs to be evicted?
The lease agreement is the basis for any action. If a tenant violates the lease and refuses to leave, a formal eviction requires a court order. This process can be slow. A good manager minimizes this risk through careful tenant screening and clear communication.
Do I need a Georgian bank account to own a rental property?
It is not legally required, but it is highly recommended. It simplifies receiving rent in the local currency (GEL), paying taxes, and managing other property-related expenses. A manager can often assist in setting one up, sometimes via a Power of Attorney.
Are short-term (Airbnb) and long-term management different?
Yes, very different. Short-term rental management is more intensive, involving frequent cleaning, guest communication, and managing bookings. Fees are also higher, typically ranging from 20-30% of the gross rental income.
This article is for informational purposes only and does not constitute legal or tax advice. You should consult with a professional for advice specific to your situation.
