Starting the business
Starting an Airbnb business in Kenya is easy. This is because the Government has set up measures encouraging real estate investments in Kenya.
- First, you have to register as required by the Kenya Tourism Regulation Authority (KTRA).
- Second, you have to be inspected and licensed by KTRA before you can begin operating as an Airbnb host for security purposes.
- You have to pay a one-time initial registration fee and annual license fees to KTRA, among other fees required for licenses.
- There are also other contracts and rules that Airbnb hosts should look out for. These include their lease agreements, protocols that tenant organizations set, the Government as well as property policies.
- Airbnb hosts should also ensure they have active insurance. This is for coverage such as damage protection and liability insurance.
Types of Airbnb rentals in Kenya
There are different types of Airbnb rentals here in Kenya. They include:
1. Apartments
This is where you find most Airbnb spaces. For apartments, owners can choose to rent their apartments as Airbnb instead of leasing to tenants. Also, hosts can rent or lease single units in the apartment and then use it as an Airbnb, where they rent to clients charging per night.
2. Houses
Investors build homes, especially in gated communities, for the sole purpose of using them as Airbnb. Also, sometimes homeowners who are looking to sell their homes opt to rent them for use as Airbnb.
3. Unique stays
These include vacation rentals. For example, villas, cabins, cottages, private and shared rooms. People mostly look to stay in these while on vacation.
Factors to consider when starting an Airbnb business
1. Location
To ensure you are chasing success in the Airbnb sector, you have to consider the location in which you set up your business. It is advisable to consider areas that experience a lot of human traffic. For example, the Coast, areas near the Masai Mara, Areas within Nairobi, which is Kenya’s capital, and areas that tend to host seasonal events such as the WRC in Naivasha. These areas have a high demand for accommodation because of tourism and this ensures that your business is moving all year round.
2. Amenities
Also, consider factors such as amenities. The properties you rent out should have proper drainage and sanitation, air conditioning, electricity, an internet connection, work-friendly and safe environments, etc. Also consider how close they are to hospitals, towns, and roads, among other infrastructure. This puts your business in a more likely to thrive position.
Nairobi has the highest number of Airbnbs in Kenya. Areas such as Kilimani, Kileleshwa, Westlands, etc are especially very popular when it comes to Airbnb. This is because not only are they fancy, but are also secure, and close to the CBD. They cater to tourists and businessmen/women who are operating within Nairobi. Areas on the coast such as Kilifi, Diani, and Watamu follow suit. They experience high tourism all year due to the fair coast weather and therefore a good opportunity for Airbnb owners to make profits. The top-rated vacation Airbnb in Kenya is a villa in Diani.
