This week’s column, from the desks Givi Pantsulaia & Daniel Klein, explores the ease with which you can rent a flat in Georgia.
As we have mentioned in two columns, immigrants can enjoy super low tax rates in Georgia (see Legal insights with Klein Law: 1% tax rates for entrepreneurs and other Georgian attractive tax rates). Georgia is a cheap country to rent an flat in. Signing a lease and renewing a Georgian visa with just a 1-day departure or re-entry for another 365 days are both very simple.
One Month Security Deposit and a Tenant-Friendly Market
Tbilisi is the vibrant capital city of Georgia. Its low-tax and low-regulation advantages, as well as its rich cultural heritage, attracts entrepreneurs and expatriates. This guide will give you valuable insight into the rental market in Tbilisi, as well as the tenant-friendly policies that are in place.
Renting a great apartment for $600 per month is not difficult. Tenants in Tbilisi will be happy to learn that they only need to pay a one-month deposit to rent an apartment. No additional realtor fees are needed. This means that tenants will have a lower initial financial burden than in other cities, where additional fees might be charged. Renters in general don’t pay brokers fees. Renters are not able perform background checks because credit rating agencies do not exist. However, landlords still only ask for a month’s security deposit. In mature markets such as the US, landlords may ask for a security deposit of up to six months or more from tenants who have no local rental history. According to Mr Pantsulaia “it is not easy to evict tenants who do not pay rent.” Technically, the landlord must bring a court case which could take several years to process. Tbilisi tenants also benefit from pro tenant legislation. This is a good thing for tenants, as it provides them with protection. However, it is important to note that in some cases it can be difficult for landlords to get a tenant to move out of the apartment. It’s a great city to live in as a tenant, but not so great for landlords.
It is best to have the contract translated into both Georgian and a language that the renter is comfortable with. You might want to check the translation since the Georgian part of the contract will apply in the event of a dispute. Before signing a lease it is advisable to check with the government’s real estate registry that the landlord actually owns the property. It is also a good idea to ask to see the original passport of the landlord and to keep a photocopy.
Opening a Georgian Bank Account
It is not surprising that opening a Georgian bank account is quick, easy and free.
Compare Yerevan
For Russians, Yerevan will be their first choice as they do not require a passport to live in Yerevan for a long period of time. For others, they are only allowed to stay for 180 days in a year without a visa. Rents are slightly higher in Yerevan than in Tbilisi. The laws regarding eviction and deposit requirements for renting an apartment in Yerevan are also similar. Tbilisi is more attractive to Westerners, but the visa situation makes it less so.
Georgia is an attractive destination for those who are looking for a place to relocate that offers value for money and has few hassles in terms of renting a house, visa rules, establishing a company, or banking.
By Givi Pansulaia & Daniel Klein
Read More @ georgiatoday.ge