Property management company: a contractor whose powers come only from its contract
A property management company (მმართველი კომპანია) is a business that runs a flat, a building or a pool of hotel units for the owner or owners in return for a fee, with whatever powers its contract gives it and no others.
No Georgian statute defines the phrase, and we found no licence or permit for it in the Law on Licences and Permits (Matsne, Arts. 7 and 24, consolidation of June 2026). The legal substance comes from three texts: the Civil Code's mandate (დავალება, Art. 709) and trust ownership (საკუთრების მინდობა, Art. 724); the Law on Homeowners' Associations, which lets owners pass the management of the common parts to an "invited manager" (მოწვეული მმართველი, Arts. 23(1)(ი) and 26(4)); and the Tax Code, which lists "management right" (მართვის უფლება) among the contracts a tourist enterprise signs with hotel-unit buyers (Art. 26-1).
The same two words cover a firm letting one flat, a firm running a whole block and a hotel operator, each with its own contract and payer. Fees firm by firm are in our guide to property management in Georgia; here we read the label itself.
Rental manager, building manager, hotel operator: three jobs behind one label
| Point | Rental manager | Building manager | Aparthotel operator |
|---|---|---|---|
| Works for | One owner, one or a few flats | All owners of a block, via the association or the developer | Unit owners in one hotel building |
| Paid by | A share of rent, or a fixed monthly fee | A monthly charge, shared by floor area | A share of the units' revenue |
| Usual legal form | Mandate, service contract or lease to the manager | Contract with the association; the chair may be an invited manager | Lease, right of use, management right, trust ownership or agency |
| Owed when the flat is empty? | A percentage of no rent is nothing; a fixed fee stays due | Yes, Art. 21(2) | Depends on the pool terms |
The building charge follows each owner's share of the area (Art. 7(3)); Housebook reported GEL 20 to 40 a month for basic service and USD 0.4 to 1.5 per m² with a concierge and 24-hour security (28 November 2025); see building maintenance fee. Operator commission is usually 25 to 35%, wrote the Batumi broker BD Group on 11 February 2026; see rental pool and aparthotel.
Mandate, lease, trust ownership or invited manager: what the form changes
| Form | Georgian heading | Who acts, in whose name | What it changes for the owner |
|---|---|---|---|
| Mandate | დავალების ხელშეკრულება | The manager, in the owner's name and at the owner's expense (Art. 709) | Owner keeps the income; either side may end it at any time (Art. 720(1)) |
| Lease to the manager | იჯარის ხელშეკრულება | The manager, as lessee, in its own name | Owner receives rent from a company |
| Trust ownership | საკუთრების მინდობის ხელშეკრულება | The trust owner, under its own name; risk and cost remain with the settlor (Art. 725(1)) | Property is transferred (Art. 724) |
| Invited manager | მოწვეული მმართველი | The association's chair or contractor | Liability set by the contract (Art. 14(4)) |
| Tourist enterprise contract | Lease, use, management right, trust or agency | The hotel company | Payment to an individual owner taxed 5% at source, final (Art. 133-2) |
Mandate. The agent must render account (ჩააბაროს ანგარიში), and limiting that duty needs written form (Art. 713); it hands back everything received (Art. 715). An owner who ends it pays necessary expenses and, if the mandate is paid, a fee for work done (Art. 720(3)).
Trust ownership. The Code says the settlor "transfers" (გადასცემს) the property. Our terminology list's "trust management" (მინდობილი მართვა) undersells that, so have a lawyer read such an agreement.
Lease to the manager. If the owner pays the fixed short-stay tax (GEL 10 per m² a month, a regime open until 1 January 2028) and leases the flat to a company that lets it short-term, Art. 309(30) exempts that lessee from profit or income tax on its short-term letting income. Whether the owner's rent from that lessee is taxed at 5% or 20% we could not confirm; see rental income tax and ask an accountant.
Who checks a manager in Georgia: tourism law, money-laundering rules, tax
- Tourism law. Law No 1630 of 28 May 2026 deleted the registration rules in Art. 11(1) to (3) of the Law on Tourism; its Art. 11-1 database covers only guides, tour operators and travel agents. We found no registration or licence duty for accommodation providers or their managers.
- Money laundering. MONEYVAL's follow-up report of 7 May 2024 found no anti-money-laundering rules for real estate agents in Georgia; we could not confirm any change since.
- Tax. In a mandate the rent stays the owner's income. A company withholds tax at source only when it pays the owner itself: a tourist enterprise does (Art. 133-2), and a lessee may have to (Tax Code Art. 154(1)(d), with exceptions such as owners on a fixed tax).
- VAT on the fee. VAT at 18% becomes compulsory for a manager once its taxable turnover passes GEL 100,000 over 12 months. We found no Georgian manager that says whether its percentage includes VAT.
The label on a listing, a sale contract and an owner statement
Listings. Realting.com shows "Management company" as a bare tick-box under "Property characteristics", naming no firm or fee. In listing 3738390, a 51 m² flat at 9 Navtlughi Street, Tbilisi, the description lists concierge, cleaning, fire safety and security: a building manager. Batumi sale listings use the phrase for an operator, with owner and operator splits such as 60/40 or 70/30, and some promise a fixed 8% return for 5 years: a seller's promise, not a feature of the flat.
Developer contracts. Look for a service charge per m² and an operator the developer appoints until the owners meet. Whether that binds buyers before the first members' meeting we could not confirm; the homeowners' association guide flags it for a lawyer.
Owner statements. The agent's duty to inform and render account (Art. 713(1)) is the legal root of the statement; how often it comes is for the contract. Expect these lines:
- gross bookings or rent collected;
- the platform fee (Airbnb's host-only fee is 15.5% for most hosts);
- cleaning, utilities, the service charge and repairs within the agreed limit;
- the management fee, with its base stated;
- VAT on the fee, if the manager is VAT-registered;
- the net payout, its currency and date.
On 2 November 2026 Wehost said it pays "once a month, in GEL, with one consolidated statement"; Tbilisi Home promised a "detailed monthly financial statement" plus an annual report.
Worked example: the same percentage, a different fee
AirROI puts the median yearly gross bookings of a Batumi one-bedroom listing, October 2025 to September 2026, at GEL 5,220, before platform, cleaning and management costs. Wehost charged 25% for one standard apartment on 2 November 2026, without stating the base. We assume Airbnb's 15.5% host-only fee on every booking; the arithmetic is ours.
| Line | Fee on gross bookings | Fee after the platform fee |
|---|---|---|
| Gross bookings | GEL 5,220.00 | GEL 5,220.00 |
| Airbnb fee, 15.5% | GEL 809.10 | GEL 809.10 |
| Management fee, 25% | GEL 1,305.00 | GEL 1,102.73 |
| Owner keeps, before cleaning, utilities and tax | GEL 3,105.90 | GEL 3,308.17 |
The base alone moves GEL 202.27 a year, about 3.9% of gross bookings.
A long let has its own trap. Galt & Taggart's December 2025 weighted average rent for Saburtalo, USD 11.3 per m² monthly, gives USD 678 a month for 60 m²; the 60 m² is our assumption. Tbilisi Home published 8% of monthly rent plus one month's rent for placing a tenant on a 12-month lease. Year one: USD 54.24 x 12 = USD 650.88, plus USD 678, makes USD 1,328.88, or 16.3% of the year's USD 8,136 rent. See net yield.
Management company, association, operator or agent?
| Term | What it is | How it differs |
|---|---|---|
| Homeowners' association | Arises by law where a block has more than two owned flats (Art. 11(1)) | It is the owners themselves; the company is their contractor |
| Tourist enterprise | Hotel company with tax status under Art. 26-1 | Withholds 5% final tax (Art. 133-2); a mandated rental manager withholds nothing |
| Asset management company | The Tax Code's აქტივების მმართველი კომპანია (Art. 154 list) | A pension or investment-fund asset manager, unrelated to flats |
| Real estate agent | Finds a buyer or tenant for a one-off fee | Managers often bill tenant-finding separately, as Tbilisi Home does |
In new buildings, "the developer's management company" is often taken for the association; the homeowners' association entry explains why it is not.
Management company, invited manager and mandate in five languages
| Language | Management company | Invited manager (HOA law) | Contract of mandate |
|---|---|---|---|
| Georgian | მმართველი კომპანია (also: მართვის კომპანია) | მოწვეული მმართველი | დავალების ხელშეკრულება |
| English | property management company | invited manager | contract of mandate |
| Russian | управляющая компания | приглашённый управляющий | договор поручения |
| Hebrew | חברת ניהול | מנהל שכיר | חוזה שליחות |
| Arabic | شركة إدارة | مدير متعاقد | عقد الوكالة |
We found no Georgian statute that uses მმართველი კომპანია for real estate: legal texts write მოწვეული მმართველი for a building, დავალება or საკუთრების მინდობა for a flat, and მართვის უფლება for a hotel unit.
Warning signs in a management offer
- A percentage with no base. 25% of gross bookings and 25% after platform fees are different fees.
- A transfer dressed as management. A საკუთრების მინდობა heading moves the property to the manager.
- A clause giving up your right to end a mandate. Art. 720(1) makes it void.
- A clause limiting statements. The duty to render account can be cut only in writing.
- An unnamed "management company" on a listing. Ask whether it is the building's service firm or a rental operator.
To be added by the team: scans for the team to add: a redacted owner statement from a rental manager showing the fee base and payout lines, the first page of a redacted management agreement with its Georgian heading, and a screenshot of a listing with the "management company" tick-box. Remove names, addresses, ID numbers and bank details.
Checking which management company you are dealing with
Name the job
Rental, building or hotel operation.
Read the heading
Mandate, service, lease or trust ownership.
Find the fee base
Gross, after platform fees, or profit.
Ask about VAT
Is the 18% inside the percentage or on top?
Check the exit
Notice period and what is owed on leaving.
Agree the statement
Lines, currency and payout date in writing.
Frequently asked questions
Does a property management company need a licence in Georgia?
We found none in the Law on Licences and Permits.
Does Georgian law define a management company?
No. The HOA law speaks only of an "invited manager".
Can I end a management mandate early?
Yes, at any time; a waiver of that right is void (Civil Code Art. 720(1)).
Is the building's management company the association?
No. The association is the owners; the company is their contractor.
Do I pay the building charge if my flat is empty?
Yes. Non-use does not release you (Art. 21(2)).
Does the manager pay my rental tax?
Not in a mandate. A tourist enterprise that pays you itself withholds tax at source; a lessee may have to, with exceptions.
Do accommodation managers register with the tourism authority?
We found no such duty in the Law on Tourism as amended by Law No 1630 of 28 May 2026.
What fee do rental managers charge?
On 2 November 2026 Wehost published 25% for one apartment, 20% for 2 or more and 10% for long lets; Tbilisi Home, 8% of monthly rent.
Sources
- Law of Georgia on Licences and Permits, Matsne (accessed 2 November 2026)
- Law of Georgia on Tourism, consolidated 28 May 2026, Matsne (accessed 2 November 2026)
- Law of Georgia on Homeowners' Associations, consolidated 15 July 2020, and English text, Matsne (accessed 2 November 2026)
- Civil Code of Georgia, Arts. 709 to 729, Matsne (accessed 2 November 2026)
- Tax Code of Georgia, publication of 15 October 2026, Matsne (accessed 2 November 2026)
- What we do: pricing, Wehost (accessed 2 November 2026)
- Property management, Tbilisi Home (accessed 2 November 2026)
- Listing 3738390, Navtlughi Street, Tbilisi, Realting.com (accessed 2 November 2026)
- Passive income from real estate in Batumi, BD Group, 11 February 2026
- How much does property maintenance cost in Georgia in 2025-2026?, Housebook, 28 November 2025
- Airbnb service fees, Airbnb help centre, article 1857
- Batumi Airbnb data: revenue and occupancy, AirROI, updated 1 October 2026 (accessed 2 November 2026)
- Tbilisi Residential Real Estate, December 2025, Galt & Taggart, 30 January 2026
Change log
- - Glossary entry published from the Law on Licences and Permits, the Law on Tourism, the Law on Homeowners' Associations, the Civil Code, the Tax Code, Wehost, Tbilisi Home, Realting.com, BD Group, Housebook, Airbnb, AirROI and Galt & Taggart.