RENTING: UNLOCKING THE RENTAL MARKET IN KENYA

by Ravi Homes Kenya
April 2, 2024
Building, Real-estate
(0)
04 Mins

RENTING: UNLOCKING THE RENTAL MARKET IN KENYA

HOW TO NAVIGATE THE RENTAL MARKET .

Rent can be defined as a sum or amount agreed in the lease or tenancy agreement, to be paid by the tenant to the landlord, for exclusive possession of the property leased for the period of the lease

The Nairobi rental market

Rapid urbanization has increased demand for rental properties all over the country. Rental properties have been on a rise and are proving to be a very profitable investment.

Investing in the Nairobi rental market can be a lucrative venture if done right. The city’s growing population and urbanization trends create a constant demand for rental properties. However, like any investment, it’s not without risks. Potential investors should consider factors such as location, property type, and market trends before making an investment decision.

FAQs

Is Nairobi a good place to invest in rental properties?

Yes, Nairobi can be a great place to invest in rental properties due to its growing population, urbanization, and increasing demand for housing. However, it’s essential to conduct thorough market research and consider factors such as location and property type before investing.

What are the average rental prices in Nairobi?

Rental prices in Nairobi vary widely depending on the location, property type, and amenities. On average, a one-bedroom apartment in the city centre can cost around KES 80,000 ($740) per month, while a similar property in the outskirts may cost as low as KES 15,000 ($140) per month.

What are the challenges of the Nairobi rental market?

Like any market, it has its challenges, including high vacancy rates and fluctuating rental prices. Understanding these factors and conducting thorough market research is key to successfully navigating the Nairobi rental market. Whether you’re a potential investor or a tenant, understanding the Nairobi rental market can help you make informed decisions and get the best value for your money.

FACTORS INFLUENCING DEMAND FOR RENTAL PROPERTY IN KENYA:

Unit Pricing / Value of rent; Rental prices can range from affordable to high-end. Depending on affordability, you can choose rental units within your price range.
Location: Units in high demand areas such as those closer to the Central Business District, might be more expensive than units further out.
Security: People might opt to focus renting in areas with good security as compared to insecure regions.
Demand and Supply of rental property: Within the rental market, too many houses available for rent and not enough demand can lead to a decrease in rental prices for property. When demand for rental property is high, lots of people would be looking to rent property and not enough rental property on the market will usually result in an upturn for rental values for property.
Neighbourhood amenities: Areas with necessary amenities including Hospitals, schools, etc will fetch a higher rent value compared to other areas that do not have access to them.

Pros of Renting:

You get more flexibility and freedom. You can make a quick decision to move out, especially if you have a month-to-month lease.
You have no responsibility to maintain the rented area. You can tell your landlord, and he or she will do all the repairs and maintenance for you.
Renting may be cheaper than owning a house. Also, because you aren’t footing the bill for repairs or maintenance, you know exactly how much you will be spending at the end of the month.
If you work or travel frequently, then renting a house or an apartment is the best decision as you won’t have to burden yourself with the responsibility of maintaining the property.

Cons of Renting:

Your landlord can increase the rent at any time.
You cannot build equity if you’re renting a property. It will be your home, but it won’t be your asset.
There are no tax benefits to renting a property.
You cannot make any changes to your house or your apartment without your landlord’s approval.
Many houses available for rent have a “No Pets” policy. So if you’re an animal lover, finding a place to rent that allows pets can be hectic.
Your landlord can evict you at any time. They can put the property up for sale to make a profit if real estate values increase.
You are bound by the rules and obligations in your lease agreement.

Renting vs Buying a home

Although money plays the most important role in deciding whether to buy or rent a home, it is not just about the money. There are many other factors that play a part in deciding which to choose. How long you plan to live in a certain location, your plans for the future, your career goals, etc., all play a role in your decision.

Just make sure you’re willing to commit to long-term homeownership before making any decisions. If you think it’s time to settle down and start a family or build a career in a specific company or location, then you should start saving for a home.

If you still think that there is much to see in this world or if you aren’t sure about your career choices, then renting is most likely the best option for you, as it provides you with greater flexibility.