The Kenyan Dream for most people definitely involves owning some apartments and getting paid rent every month. The security and predictability of rents as an income stream beats many investments hands down. However, while many people fantasize about this, very few talk about the problems that come up during operationalizing of the property. The myth out here is that rental properties are a “set-it and...
According to statistics, over 75% of Kenyan landlords prefer to self-manage their properties. A big reason being the cost savings made when they take over the operations of their own property. However, this is not without its share of stress. Countless landlords I have spoken to quickly tell me how stressful self-management can be. On inquiring further, many of them lack a system that can help them ease...
Many people have been sold to the idea that real estate is a passive investment. However, once you dip you toes into the world of rental property, you discover how far from passive real estate is. I normally tell my clients that the work starts after construction. This work is called property management and it could make or break your investment. I have seen many beautifully built apartment blocks that...
If you are a landlord, then one of your monthly obligations is paying the Monthly Rental Income (MRI) tax. This is simply a 7.5% cut from your gross residential rent and it applies to individuals and corporate tenants earning yearly rents of about KES 288,000 – KES 15,000,000. For clarity, if you rental units combined bring in a gross of KES 24,000 – KES 1,250,000 monthly, then you are eligible for MRI...
Most landlords and property owners I have spoken to always seem to have some tenants who are causing them sleepless nights. Whether this is due to difficulties in paying rent or engaging in activities that cause disturbance. The truth is that all this could have been prevented if proper screening had been done. Tenant screening refers to the process used by landlords and property managers to evaluate...
I have spoken to many landlords in Nairobi who keep on reiterating one common problem when we meet. The issue normally goes to the tune of, “the rental business isn’t profitable” or “my tenants are always moving out.” Most of these issues and complaints are symptoms of a larger problem called high tenant turnover. In simple words, this is when many tenants move in and out of your property in...
What are land rates? Land rates is simply a form of property tax paid yearly to the local county government by a land owner. It is based on the unimproved value of your land and the amount varies depending on; your location, land size and amenities provided. Unimproved value means, the value of the land without buildings or any improvement – when bare. Rates are paid as a statutory obligation...
What is Airbnb? Airbnb is a platform where property owners choose to rent out part of their houses, like a DSQ. You can also choose to rent out the entire property on a short-term basis. It is majorly used by travelers who don’t want to stay in a hotel and would rather have a ‘home-like’ experience. It also helps property owners make money from parts of their house that are...
Why understand Real estate taxes Investing in real estate needs knowledge in some key areas. This includes understanding the construction process, laws surrounding real estate, financing structures & TAXES! Most people I have met understand all key areas apart from taxation. For many, it feels like being robbed by the government. And it is the reason most people shy away from educating...
Compare listings
Compare