AZE.US
Short-term apartment rentals in Baku are increasingly looking like a small business of their own. Tourists, business visitors, forum guests and families arriving for a few days are not only looking at hotels. Many also search for apartments in central areas where they can stay together, cook, do laundry and move around the city easily.
The most attractive locations are familiar: 28 May, Nizami Street, Sahil, the Seaside Boulevard, Port Baku and areas close to major malls and metro stations. Listings usually emphasize the same things: central location, Wi-Fi, air conditioning, a kitchen, washing machine, self check-in and enough space for several guests.
Online ads show how this market works. One three-room apartment near 28 May Mall is listed on BakuRent for 70 manats per night, or about $41, and says it can host up to six people.
On paper, the numbers can look attractive. If an apartment rents for 70 manats, or about $41, per night and is occupied for 20 nights in a month, gross revenue reaches 1,400 manats, or about $824. But after a 10% rental tax, that falls to 1,260 manats, or about $741. From that amount, the owner still has to cover cleaning, laundry, utilities, platform fees, small repairs, furniture wear and nights when the apartment is empty.
A tax advisory explanation of the rule says that if a contract states rent of 600 manats, or about $353, the tax is calculated directly on that amount.
Tax is an important part of the calculation. In Azerbaijan, income earned by individuals from renting residential property to other individuals is taxed at 10%, excluding hotels and hotel-type accommodation facilities. If the tenant is not registered as a taxpayer, the landlord or an appointed tax agent must pay the tax and file a declaration.
The tax is calculated on the rental amount, not on the owner’s remaining profit after expenses. A tax advisory explanation of the rule says that if a contract states rent of 600 manats, the tax is calculated directly on that amount. That matters for landlords who include utilities or other costs in one total rental price.
Demand for short-term housing in Baku has a real base. Azerbaijan received 2.57 million foreigners and stateless persons from 189 countries in 2025, according to the State Statistical Committee. The largest groups came from Russia, Türkiye, Iran, India, Georgia, Saudi Arabia, Kazakhstan, Pakistan, Israel, China and Uzbekistan.
For some of these visitors, an apartment is more convenient than a hotel room. A family or group can stay together, use a kitchen and washing machine, and avoid booking several separate rooms. For owners, that creates a chance to earn more than from a standard long-term lease.
But short-term rental is not passive income. It is closer to running a small hotel without a reception desk. Owners need to answer messages, manage check-ins and check-outs, maintain ratings, clean the apartment, replace linens, handle neighbors and respond quickly when the air conditioner, water, internet or door lock stops working.
Vacant nights are the real test. If an apartment rents for 70 manats per night but is occupied only 8 to 10 nights a month, the attractive Airbnb-style business quickly becomes a cycle of cleaning, messaging and uncertain income. In that case, a long-term tenant may bring less excitement but more stability.
The result depends heavily on the specific property. A renovated apartment near 28 May, Sahil or the boulevard, with clear check-in, honest photos and good reviews, can perform well. A weaker location, old repairs, difficult access, unhappy neighbors or poor service can turn the same idea into a headache.
That is why owners should compare short-term rental not with an abstract “average rent,” but with the real long-term value of their own apartment. The same flat may earn more during tourist seasons, forums and major events, but perform worse in quieter months.
Airbnb-style rentals in Baku can be profitable, but only for owners who treat the apartment as a small hospitality business, not as spare square meters. For everyone else, long-term rent may be less fashionable – and far less stressful.
AZE.US