Buying an Apartment With a Tenant in Tbilisi, Georgia
Yes, you can buy an apartment in Tbilisi with a tenant already living in it, and for a lot of investors it's a good move. The apartment starts generating yield the day you buy it, and you skip the search for a tenant. One cost catches many buyers off guard, though: the last month of rent that the tenant paid in advance. It's usually negotiable, but you have to raise it yourself.
STRATOS is a property management and real estate investment company in Tbilisi, Georgia. We manage residential apartments for foreign owners and help them buy in the city, so tenanted purchases come up regularly. What follows comes from the deals we've worked on.
Can a foreigner buy an apartment in Tbilisi that is already rented?
Yes. Foreigners can buy residential property in Georgia, rented or empty. If you're new to buying in the country of Georgia, our guide on whether foreigners can buy property in Georgia covers the basics.
Why do investors buy apartments with a tenant?
The obvious reason is income. Rent comes in from the first month, and you don't carry an empty apartment while you look for someone to rent it.
The less obvious reason is the commission. Finding a tenant in Tbilisi usually costs money: an agent typically takes one month's rent for a 12 month lease and half a month for a 6 month lease, and it's normally paid out of the tenant's last month. Buy an apartment that's already rented and you skip that cost. Some investors choose tenanted apartments for exactly this reason, especially the ones who'd rather not work with an agent at all.
However, the last month is where buyers often get caught.
What is the "last month" trap when buying a rented apartment?
Here's how renting usually works in Tbilisi. The tenant prepays the first and last month, and the landlord passes that last month to the agent who found the tenant as commission. It means that in the final month of the lease, the tenant lives in the apartment and pays no rent. Not every lease works this way. Some landlords take a deposit instead, some take both, and in the end it depends on what the owner and the tenant agree.
Now the problem. The owner treats that last month as already spent, because the agent got it. The tenant treats it as paid, because he did pay it. So when the apartment is sold before the lease ends, the new owner collects rent for every month except the last one, and the tenant lives there free for that final month.
Many sellers present this as a fact of life: the tenant prepaid, so he won't pay again, and that's the buyer's problem. This comes up often when we negotiate for clients we are helping to buy an apartment.
What it looks like in a real deal
We've seen this happen many times. In one recent deal the seller mentioned that the apartment was rented and that the tenant needed to stay. The prepaid month came to one month's rent, and left alone it would have landed on the buyer. However, we didn't think that was fair to the buyer, so we negotiated on behalf of our client.
The argument that works is simple. The agent was the seller's choice, so the cost is the seller's. The buyer didn't hire the agent and shouldn't lose a month of income because a tenant lives in the apartment. Sellers can be convinced, as long as you explain it thoroughly and make it obvious that it makes no sense for the buyer to carry the cost. However, it can cost you a lot of energy, as some sellers can be stubborn.
Who should pay the last month, the seller or the buyer?
There's no law that decides this, so it comes down to negotiation. In our eyes, it should be the seller.
The seller is the one who used an agent, and the agent was paid with the tenant's last month. That cost belongs to the person who incurred it. A buyer who gets an apartment with a tenant shouldn't end up worse off than a buyer who gets an empty one.
Many owners don't want to carry the cost, and you shouldn't expect them to volunteer it. Bring it up yourself and explain why.
How do you handle the last month and the deposit in the deal?
The simplest way is to deduct the last month's rent from the agreed purchase price.
If the tenant also paid a deposit, it should pass to you, and it can be handled the same way: deducted from the agreed price.
Raise both during the negotiation, as soon as you know the apartment is rented. Then put the result on paper. Written is always better than a verbal promise, though how much to formalize depends on the negotiation, because sometimes making things too complicated costs you leverage. Ask your lawyer to reflect the agreement properly in the contract.
What should you ask the seller about a tenanted apartment?
These are worth asking for:
The lease agreement. Ask for it first. It gives you a general idea of what was agreed.
How it was really done. Don't stop at the document. Some lease agreements are poor, and sometimes what the seller claims doesn't match what was actually done. It depends a lot on which agent the previous owner used and how thorough they were. We've seen some horrible contracts over the years.
The tenant's side. If the contract and the seller's story differ, ask the tenant directly.
Proof. Ask for proof of what was paid and when, including the prepaid month and the deposit.
Whether the tenant is staying. It decides what else you need to negotiate.
Should you keep the tenant?
Usually, yes. If the tenant is staying, you can simply buy the apartment and the rent keeps coming, with no empty months and no commission for finding someone new.
If he's leaving, there's more to negotiate: when you buy, how long he stays and when exactly he moves out. Get that in writing.
The one thing that can change the answer is the rent itself.
What if the tenant pays less than the market rent?
It depends on the gap. Before you buy, look at the market: the area, similar apartments, what they're listed at. Asking rents aren't what people end up paying, and you can usually expect to land around 10% to 15% below whatever is listed, because everyone negotiates.
Say a tenant pays $650 a month and comparable apartments in the area rent for $850. That's a real gap, and buying with that tenant may not be a good idea. In that case you'd want to look at how to end the lease safely before you commit.
How big a gap you accept is up to you. Some investors want stability and take the lower rent. Others accept more risk for a higher return. If you're still comparing areas, our guide to the best districts for rental investment in Tbilisi is a good place to start.
Frequently asked questions
Can a foreigner buy an apartment with a tenant in Tbilisi?
Yes. Foreigners can buy residential property in Georgia, whether it's rented or empty.
Does the tenant have to leave when the apartment is sold?
Not necessarily. If the tenant wants to stay, you can simply buy the apartment and start collecting rent right away. If he's leaving, agree the move-out date with the seller in writing.
Who pays the tenant's last month when a rented apartment is sold?
The seller should. There's no law that decides it, so it comes down to negotiation, but the most logical answer is that the seller chose to use an agent, so the cost is theirs. Bring it up early and explain why.
What happens to the tenant's deposit when I buy?
It should pass to you. The best way is to deduct it from the agreed purchase price.
How much does an agent charge for finding a tenant in Tbilisi?
Usually one month's rent for a 12 month lease and half a month for a 6 month lease.
Is buying with a tenant a good investment?
It can be. You get rent from the first day and skip the cost of finding a tenant. It stops making sense when the tenant's rent is well below the market, so check the rent against the area first.
Thinking of buying a rented apartment in Tbilisi?
If you're looking at a tenanted apartment, we can read the lease with you, check the rent against the market and help negotiate the last month. After the purchase we can also take over property management. Start with a free consultation or write to info@stratos.ge.
This article shares general information, not legal advice. Please confirm contract details with your own attorney in Georgia.
Published by STRATOS. Updated October 2026.
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