Serviced apartments with an operator
You buy the unit, a hotel rents it: chances and risks.
The rental guarantee. A promise is only as good as whoever makes it.
In short
A rental guarantee in Georgia is a promise in a contract, not a form of state protection. Its value depends on the assets of the company giving it and on any security behind it, such as a bank guarantee. Check exactly who guarantees, what the percentage is calculated on, how long it runs and what happens afterwards. If the price is above that of similar flats without a guarantee, you may be paying for the guarantee yourself.
The clauses one by oneHow serviced apartments with an operator work is covered in a separate guide. This one deals with the guarantee alone.
Serviced apartmentsClause by clause
Nine questions for any guarantee.
Read the guarantee as you would a loan agreement in which you are the lender. Every answer belongs in the contract, not in the sales presentation.
Who is the obligor
The developer, the operator or a company set up for the purpose. If the contract names a different company from the purchase agreement, that is a separate debtor. Check the NAPR business register for its date of incorporation, shareholders, directors and whether it is in liquidation.
What stands behind it
A newly formed company with no assets of its own can sign a guarantee but may not be able to pay it. Ask for accounts, for property it owns and whether the parent company is jointly liable. Without answers, the guarantee is a promise with nothing behind it.
Is there security
The Civil Code treats suretyship and guarantees as distinct forms of security. A bank guarantee from a bank licensed in Georgia normally protects you better than the developer's word alone. Ask to see any security in the original and have the issuing bank confirm it.
Term
Depending on the contract, the guarantee starts on purchase, on handover or when operations begin. With a new build, years can pass between purchase and handover with nothing paid. Check the start, the end and what applies if construction is delayed.
What the percentage is based on
The purchase price, the price excluding furniture or some other figure. If the base is smaller than what you paid, the guarantee is smaller than it sounds. Work out the annual amount in lari or dollars and have that figure written into the contract.
Gross or net
If the operator or manager deducts the service charge, cleaning, furniture replacement or tax before paying out, less is left. Ask which costs you bear on top and who pays the tax on the income.
Own-use blackout days
Many guarantees limit when and for how long you may stay yourself, often with blackouts in high season. Use more and, depending on the contract, you lose part of the guarantee. Ask for the rule with dates and consequences.
After it expires
When the guarantee ends, many schemes pay only a share of actual results. Ask how that share is calculated and what occupancy the building achieves without a guarantee. The guaranteed period says nothing about what the flat earns afterwards.
Price, termination and resale
Compare the price per square metre with similar flats without a guarantee. If it is higher, you may be prepaying the guarantee yourself. Check also who can terminate the contract, whether it passes to a buyer on resale and what happens if the obligor becomes insolvent.
Frequently asked questions
Questions about rental guarantees.
Legitimacy, security, term, tax and exit.
Is a guaranteed rental return in Georgia legitimate?
A guarantee is not illegitimate in itself, but it is only a contractual promise. Its value depends on the obligor's assets and on security such as a bank guarantee. BaFin, the German financial regulator, names high returns with almost no risk as a warning sign.
Who pays if the guarantor goes bust?
Without security you are an unsecured creditor. You file your claim in the insolvency proceedings and receive only what the estate yields after creditors who rank ahead of you. With a bank guarantee you can claim against the bank within its terms. That is why the question of security matters more than the percentage.
Is the guaranteed yield gross or net?
Only the contract says. Check whether the service charge, management, cleaning, furniture replacement and tax are deducted before payment, and work out what actually reaches your account.
What happens when the guarantee ends?
In many schemes you then receive a share of actual rental results. Ask for the formula and for the building's occupancy without a guarantee. Selling a flat tied to an operator contract can be harder than selling one without.
Is guaranteed rental income taxable?
Yes, guaranteed payments are taxable income. Whether Georgia treats them as rental income and whether the payer withholds tax is a question for a local tax adviser. Tax in your home country may also apply.
Last reviewed on November 2, 2026. Sources: Civil Code of Georgia (matsne.gov.ge): obligations, suretyship and guarantees, National Agency of Public Registry (napr.gov.ge): business register, BaFin (bafin.de): Investments: how to recognise fraudulent offers (warning signs: high returns with almost no risk, time pressure), Financial Conduct Authority (fca.org.uk): Protect yourself from scams. This guide is not legal or tax advice.
Read next
More on returns and promises.
The operator model, an honest yield calculation and how to test the claims in a listing.
Check the obligor, not the percentage.
Every project page names the developer. Who gives a guarantee is something you check yourself in the register.