How to start a real estate business in Kenya is one of the million-dollar questions we have seen online recently.
The property market in Kenya is expanding rapidly. The proliferation of new condo complexes and gated communities proves this trend.
Even in remote parts of the country, numerous advertisements touting the benefits of land ownership exist.
Most Kenyans, however, have yet to realize that there are alternative, modern ways to invest in real estate that do not involve purchasing land.
How to Start a Real Estate Business in Kenya
1. Investigate the Market
If you dive headfirst into a business venture, you will inevitably fail. Before making any real estate purchases in Kenya, you need to take some time to learn about the market. You must also know the legal hurdles you will need to jump.
Use books, newspapers, and magazines for your research. However, a lot less time-consuming option is to read the blogs posted on the websites of real estate agencies.
2. Come Up With an In-Depth Business Plan
Since real estate investments typically demand sizable sums of money, a well-thought-out business strategy is essential for attracting the necessary funding.
A company strategy can serve as a guide to accomplishing your building objectives. Additionally, it aids in letting others know what you do for a living and how you make money.
3. Come Up With a Catchy Title
The cutthroat nature of the market necessitates a distinctive and easily remembered brand identity. The name must convey that if you want people to take you and your business seriously.
You can cultivate trust and confidence in your company through a strong brand identity. In this approach, satisfied clients will feel comfortable referring you to their friends and family.
4. Obtain Initial Funding
After some preliminary investigation, you have an excellent notion of how much money will be required to launch your real estate firm.
Putting money aside is one option for getting cash. However, there is often a shortfall in savings, even after investing in branding and market research.
You can also ask a bank for a loan if you have collateral, another capital-raising option. Sharing costs with other investors is a more cost-effective strategy.
5. Make a Beautiful Website
One in two Kenyans now owns a smartphone, so having a solid web presence is just as crucial as word of mouth.
Your brand name and contact information will be prominently displayed on your website. You can also promote your listing by making your social media accounts public.
You can also make the sorting process more accessible by including images of the property and a detailed description.
Kenya Property Choices
Real Estate Options In Kenya
After doing some research on the topic, we present the following real estate business opportunities;
1. The Landlord and Property Owner
Acquiring land in Kenya is easy. After receiving land, you can lease it or construct a rental structure. You must see a lawyer and get a lease agreement to rent the property. The lessee must sign the lease.
You can now enter the landlord business if you construct rental properties. You can now legally charge rent. But before you start construction on a rental property, you’ll need a permit from your city or county.
Pros
- You would keep all the rent money if you built the rental property without a loan.
- You will never again have to worry about money.
- Depending on several factors, rent for properties typically increases.
Cons
- Sometimes renters need to arrive on time with their payments.
- When tenants cause damage to the properties, you end up footing the bill.
- Tenants can cancel their lease if they experience an unforeseen problem.
2. Supervising Tenant
In some cases, landlords will hire property managers to handle rent collection. Property managers must have expert knowledge of real estate law and finance.
In addition, you need to have a minimum quantity of cash on hand to make a rent prepayment to the landlord. Now it is up to you to collect rent from your tenants.
If you want to work in real estate in Kenya, you must join the Kenya Professional Realtors Association.
Pros
- Setting up shop will take little time if you’ve done your homework.
- Profits can be relatively high, depending on the terms of your lease with the landlord.
- If you manage multiple homes, this might be a source of revenue for years to come.
Cons
- Tenants can be challenging to work with.
- It’s possible to get sued if you try to evict a tenant without following the law.
- The length of time a property can sit empty is extended.
3. A Property Broker
If done correctly, real estate sales can provide a comfortable living for the seller. In this section, you can post ads for potential buyers or renters. Land and structures alike are fair game.
However, to succeed in Kenya, you must join the Kenya Professional Realtors Association. Moreover, the Land Registry’s approval and license are prerequisites for doing business.
Pros
- Real estate sales can provide a comfortable living for the right person.
- Selling real estate allows you to travel throughout the country.
- The learning curve is low, making this a promising field for financial investment.
Cons
- The industry is risky and rife with con artists.
- You need to join KPRA to rely on the organization for representation in court.
- You must be familiar with the legal requirements of selling real estate.
4. Developer
This is one of the most lucrative segments of the Kenyan property market. Acquiring property in various locations to resell is a common strategy.
But before they can profit from the land, developers must increase its worth. A developer must create a building plan, advertise the site, and secure necessary permits and licenses from local, state, and federal agencies.
In addition to these requirements, a developer must be a Kenya Property Developers Association member.
Pros
- In Kenya, land is a hot commodity.
- In recent years, most Kenyans have come to respect land with additional value and even carefully planned developments.
- If you manage your money well, you won’t have to worry about it.
- Possibilities for cross-country travel are virtually limitless.
Cons
- Obtaining the necessary licenses and permits from the government can be lengthy.
- Corruption is pervasive in the business world.
- The initial investment required is high.
- If you don’t do your homework, con artists and crooks will try to sell you contested land or road reserves.
5. Property Management Advice
Without purchasing physical property, one can start a consulting firm. To operate legally and establish a solid reputation, you must first obtain a registration certificate, just like an agent or agency would.
Having an office and employees is also required. You will be providing advice to clients in the areas of real estate transactions, development, and financing.
Pros
- If you want to be your boss, you can.
- When you have a solid reputation, getting large contracts is simple.
- It’s a thrilling profession with the potential for exposure on major networks.
Cons
- Reputation is something that takes years to build.
- It’s costly to get going.
- Long hours spent prospecting for customers are a reality for many self-employed workers.
- To legally conduct business, you must have the appropriate certifications and licenses.
6. A property blogger
Because so many Kenyans now reside in cyberspace, property searches are conducted exclusively electronically. Because of this, numerous real estate websites directly provide blogs devoted to discussing various property-related topics.
Freelance writing is a viable career option for those with solid research skills, an extensive understanding of the real estate sector, and the necessary writing equipment.
Pros
- You can choose your hours since you do most of your job from home.
- It’s thrilling to go on a nationwide interviewing tour.
- If you’re a freelancer, you have the flexibility to work for multiple clients at once.
Cons
- Working from home all day might be exhausting.
- Good writing tools can be pricey.
- When conducting research, you may have to cover your travel costs.
7. Producer of a Real Estate Show for Television
Starting a real estate television show is another fruitful way to enter the industry.
All you need is the required filming gear, the appropriate permissions to film on various properties, and extensive familiarity with the Kenyan real estate market.
You also need a fantastic team composed of well-versed individuals in their roles.
Pros
- It can be rather profitable.
- You get to see some of the most impressive works of architecture in the United States.
- You get to know and mingle with the affluent.
It’s a great way to broaden your understanding of the real estate market.
Cons
- Investing in the proper machinery and hiring qualified personnel is costly.
- Due to the intense competition in the industry, getting your show picked up by a significant media outlet is challenging.
- The process of making a television show is lengthy.
- In some regions, you need the proper authorization to shoot, or you could face criminal charges.
In Conclusion
Before launching your company in Kenya, arm yourself with the aforementioned real estate investing opportunities. While the majority are simple, some may necessitate official sanctions before you can move on.