Recently I've been working on the Tbilisi Airbnb property management service and with the help of this article, I decided to take a quick look at the overall Tbilisi Airbnb market. The size, revenue, occupancy rate, and more.
According to AllTheRooms, the average daily rate for hosts earned in Tbilisi was $40, which is a +5.26% growth if compared to the previous month. while the occupancy rate was 27% (a -10% decrease compared to the previous month)
- There were 6,435 listings in Tbilisi during the month of May (-1.74%)
- The average earning per listing is $339 (+0.3% growth)
Taking all those data together, it seems that the Tbilisi Airbnb property market in the month of May was worth about $2,16M
As I'm looking to rent to sublet an apartment in Tbilisi, these numbers are good to know and might help get basic general.
To make it worth the effort I've decided to focus on popular and highly demanded areas in Tbilisi for letting entire apartments for short-term rent. Looking to rent a newly built apartment in Vake, Saburtalo for a budget of $500-600 per month. i couldn't find exact data for Vake or Saburtalo on the AllTheRooms website, but it looks like the occupancy rate for the entire apartment could go slightly above the average (looks between 36-75%), I guess it all depends on how good is the apartment and how you market it on Airbnb.
Here is an example of something I'm looking at myself - a one-bedroom apartment with an average daily rate of $43 and an occupancy rate of 74%. This might be a good example.
In a case of renting it out for $43 daily with a 74% occupancy rate, it would return about $900, which is actually quite a good return on investment, in case we are renting for $500/mo - Our profit would be about $400 but form this money we should also pay the utilities, maintenance, cleaning, etc. Still, the income should be good. Smarter of course might be buying property and keeping all of the profit.
The situation changes drastically if we have an occupancy rate of just 27% (the average in the month of May in Tbilisi) - that would yield us just $344 and leave us with some losses.
Anyhow, there are too many variables and ifs to give a clear answer, use the data just for a rough estimate. In case you need help with managing your property in Tbilisi, I'm here to help