Author: Peris Gachago

Do you fear investing in real estate to avoid losing your hard-earned cash to con sellers? Well, no one loves to lose their money to cons, not even a single coin.

Or are you a property seller but let opportunities slip because you don’t want to risk your property to cons? So, what do you do to secure your funds or properties? 

I’ll give you the correct answer, and henceforth, you’ll be free to do transactions worth millions, if not billions, of money. 

This post clearly explains escrow’s meaning and how it can help you close real estate deals.

Keep reading.

Escrow Meaning 

An Escrow is a third party who holds money for two parties engaging in a business transaction. Once the seller agrees on the final price with the buyer, they request the buyer to deposit the funds in an escrow account.

Escrow is usually a legalised arrangement that foresees the success of transactions. Escrow returns the money to the buyer if the seller doesn’t meet the sales agreement requirements. 

Escrow also holds homeowner’s mortgage repayment funds. However, this is usually an agreement between the lender and the borrower (homebuyer).

10 Key Steps to Close a Real Estate Deal

How does Escrow Operate?

For Property Buyers

If you are buying a home, apart from proof of funds letter, the seller will request you to deposit some funds in escrow to serve as a down payment. This will act as good faith, and you will show the seller that you are willing to buy their property.

Once you complete signing the home transfer documents, you are free to release the funds to the seller.

However, that’s not always the case if you find some wrong things that need the seller to fix. Escrow holds the buyer’s funds until the seller does what they ought to do if this is the case. 

For Taxes and Insurance 

This escrow account works for the new homeowner and the mortgage lender. After buying the property, the lender opens an escrow account where they’ll take portions of your monthly mortgage repayments to pay your taxes and insurance. 

10 Steps to Achieving the Dream of Home Ownership

The funds stay in escrow until tax and insurance payments are due. However, the tax and insurance amount can change annually due to adjustments caused by things like inflation.

When the tax and insurance payments increase, the lender requests you to add more funds to your monthly mortgage payments. On the other hand, when the taxes and insurance reduces, the lender gives you an escrow refund.

Who Manages Escrow Accounts?

It’s a third party responsible for releasing funds to the right owner, where the buyer if the sales agreement is void or the seller when the agreement is signed.

In Kenya, we have Escrow Kenya that can help you in making big purchases and sales.

An escrow agent manages the account if you don’t need a mortgage. In comparison, a mortgage lender manages the account if you are using a loan to buy the property.

During mortgage repayment, a mortgage servicer/lender manages the escrow account until you completely pay off your loan.

They will be responsible for depositing the right amount for taxes and insurance in the escrow account. They are also responsible for all payments.

Benefits of Escrow Accounts 

• For property buyers 

An escrow account will protect you from potential scams. Once you feel something is not adding up about the property you are about to buy, you can leave the contract and get your deposit back.

• For property sellers 

An escrow account helps buyers to pay taxes and insurance without much pressure. The lender gets that from the lump sum mortgage payment and sets apart money for taxes and insurance.

In addition, the mortgage servicer keeps all records about when tax or insurance premium is due. So less stress on your side.

• For lenders 

Lenders are in the first line to ensure you pay all taxes and insurance premiums concerning borrowers’ homes. And escrow helps them manage that.

If the buyer doesn’t pay the property taxes, KRA will come after the property, and the lender will lose. In addition, if buyers don’t pay the insurance and anything happens to the property, the lender still loses.

So escrow helps them avoid such inconveniences.

Disadvantages of Escrow Accounts 

• The mortgage repayment has a higher monthly instalment due to included taxes and insurance. So the buyer will have to put in more money.
• Wrong tax and insurance estimates that are subject to annual changes can get the buyer off-guard, especially if it’s an increase.

Bottom Line 

Always consider using escrow accounts when selling or buying property. That will save you from unnecessary damages caused if one party breaches the sales agreement. 

Frequently Asked Questions 

1. Is an escrow account safe for buyers?

Yes. Legitimate escrow accounts should protect buyers from scammers. Buyers cannot lose money to scammers masquadarring as property sellers. Once a buyer notices some fishy details, they can pull out from the sales agreement and get their money back.

2. What happens to the escrow balance after repaying the mortgage completely?

The mortgage lender issues an escrow refund. So you won’t lose your money.

You’ll agree with me that a business name contributes to a percentage of success, especially if it’s a start-up. The name you choose for your real estate business can draw clients into your property, either renters or buyers.

As long as you are free to name your business whatever you need, you can choose a good title that will draw customers. The good thing is that there is no law in Kenya restricting how you should name your business.

So what do you consider? Well, this guide has everything you need to know when choosing a real estate name in Kenya.

Keep reading.

Tips to Choose a Good Name for Real Estate Business 

1. Keep it short 

Most people are lazy when it comes to reading and capturing names. So bombarding them with a long name will not do any good for your real estate business. 

In addition, a long name may force you to use abbreviations, and most individuals may get the name wrong and end up in other destinations.

In addition, make the name very catchy so that it can quickly draw the attention of passersby.

Remember you are targeting home buyers and renters with your real estate business. A short and catchy name related to real estate will do just fine.

You can choose a short name that can easily stick in people’s minds. That will help you get good results if you advertise your property on Television, radio, or social media.

For instance, choose a name like smart home, Feel at home, Get home, and many more interesting short real estate names.

2. Do you need confidentiality?

If you don’t want anyone to know you are the actual owner of the real estate, don’t use your official name in the naming process. However, you can use a son/daughter or a pet name to get more attached to the ownership.

Beginner’s Guide to Real Estate Investment in Kenya

3. Consider a street address. 

No one owns street or town names. Therefore, you can name your real estate business after a street name without restrictions. For instance, you can choose a name like Ruiru Realty Homes. 

As long as the name is not another registered business, you can own it.

4. Use Your Name 

You can use abbreviations, part, or your full name in naming your real estate business. For instance, use a name like J.K.M homes or John Kamau Homes. 

However, this naming technique is not always the best when you grow. For example, a website by that name can be a little bit weird, and it can take a long before getting noticed.

5. Ensure your name is unique. 

Do not use a name close to another real estate name. That puts you on the wrong side of the law concerning company naming and confuses your customers. 

Potential clients might settle in the other business, thinking it’s yours. As a result, all advertisement funds may benefit your competitor, which is a bad idea.

Therefore, research the area you want to buy your real estate and know the names of the neighbouring estates. That will help you come up with a unique name.

6. Consider using synonyms 

Make Google your friend, and you’ll find synonyms of every existing word. That will be an excellent resource for getting a unique real estate name. In addition, ensure you understand the name you choose. And it should not have other disturbing meanings far from real estate.

7. Check for available website domain names. 

When your real estate business grows, you may consider getting its website. Check whether your desired name is available for purchase. You can check available domains using the Whois website. 

Furthermore, check the name availability inthe eCitizen government portal to ensure you are not buying a domain for another registered real estate name.

8. Choose a marketable name 

A marketable name should be able to tell a customer what the business does. For instance, Homes For You indicates that the business deals with selling homes, making it a marketable name.

Conclusion 

A good name will contribute to how people will see your real estate business. So choose a short marketable name that will stick in people’s minds. 

Frequently Asked Questions 

1. Which name is best for real estate?

An excellent real estate name enables a potential customer to know what the business entails without asking. It’s also a short name that is easily memorable.

2. What is a property name?

It’s a name that identifies certain buildings or land. 

3. What does the term realty or realtor mean in a business name?

Realty or realtor in a business name means the business deals with real estate. 

4. Can a good name promote business stability?

Yes. A good name that explains the business motive can promote stability. Such a name ensures you don’t do anything outside what you’ve promised in the business name. Therefore, your business will be stable since there is no swaying around.

Like any other business, the real estate business requires strict bookkeeping procedures. That’s the only way to realize an excellent return on investment.

In addition, one thing you should know about rental income is that it’s now taxable in Kenya. And that calls for precise bookkeeping.

If you keep the wrong records, the Kenya Revenue Authority (KRA) will be on your neck, and you can’t hide.

Now, this guide will help you learn about bookkeeping in real estate. In addition, you’ll know the critical records you should keep enabling you to calculate the actual profit or loss.

What is Bookkeeping in Real Estate?

Bookkeeping involves recording all transactions happening in a business. You take note of all purchases, sales/rent, payments, and other business expenses. Every record should be against the date it happened to enable more accurate calculations.

In this digital era, you can keep long-lasting records via free-to-use Google tools like photos, Docs, or Sheets. Alternatively, if you prefer physical documents, you can still maintain them. But digital records on Google are safer since you can access them wherever you are.

3 Important Records to Keep in Real Estate Business in Kenya 

1. Rental income 

Rental income is among the main benefits that lead you to real estate investment. A good flow of rental income accompanied by proper bookkeeping can help you retire early with real estate. 

Beginner’s Guide to Real Estate Investment in Kenya

Rental income is any income you receive from your property occupants every month. Sometimes you may not have 100% occupancy, but you should keep the records regardless of the situation. 

A clear record of this income is vital in determining your cash flow. It will also determine whether you are making a profit or loss. For instance, use the 50% rule to determine your rental business cash flow. 

2. Expenses Records 

It’s crucial to keep records of all expenses incurred on the property. This is an excellent plan to help cut taxes you should have paid. Remember that KRA will be after your profits. And you only get profits by subtracting expenses from the monthly rental income. So the higher the difference, the higher the taxes, and the reverse is true.

Always ensure that everything you buy concerning the property has a VAT receipt. These records help in validating the tax you should pay.

Examples of real estate expenses:

• Repairs and maintainable 
• Electricity 
• Utility bills 
• Cleaning bills 
• Water costs 
• Property insurance 
• Mortgage repayment
• Staff (you, accountant, and property manager) salaries
• Legal fees and any other fees related to the business

All those expenses should be deducted from your gross rental income. After that, you can file returns on the KRA portal itax on the remaining income. Rental income returns are not similar to salary returns. This is because rental property owners file returns before the 20th of every month. For instance, September rent should be filed before the 20th of October.

Since it’s a short filing period, you should keep dated expense records to help in proper bookkeeping. 

If you got no rental income in a particular month, you’d file nil returns for that month. Remember, fines are associated if you don’t file your returns on time, whether nil returns or not.

3. Bank statements 

You should request bank statements regarding the property from the bank and keep them in a safe place. Always ensure you get your bank statements after a month or a few months. 

A bank statement will be proof of income flow and expenses payments if you pay using the property’s debit card. 

You should avoid mixing personal with business expenses because that will lead to unclear records and wrong results. That’s why you should have a separate business account.

If you manage your business account well, you can get a business or a mortgage loan to help you expand your rental business. 

Benefits of Bookkeeping in Real Estate Business

• You have clear records that help you during the monthly filing of rental returns.
• With a separate business account, you’ll build a credit score, which you can use to get a blanket mortgage to expand your property business.
• You will have clear records of your rental cash flow if you use the 50% rule. One-half goes to expenses, part of the remaining half goes to the mortgage, and the rest is cash flow.
• You’ll also learn about the performance of your rental business. If you continue getting losses, you can find something else to do. Clear financial records help analyse your business during ups and downs. 

What Next?

Bookkeeping can be challenging unless you have accounting knowledge. Therefore, ensure you get a qualified professional to help you keep clear records that will help you make critical decisions. Proper bookkeeping can help your business grow towards the right direction.

Frequently Asked Questions

1. What does a property bookkeeper do?

They will record all business transactions and the dates they happen. They also keep track of all expenses related to business. In addition, they can help the owners to tax file returns at the required time.

2. What are essential bookkeeping records in real estate?

The primary skill that a bookkeeper should have is attention to detail. Remember that a simple mistake can lead to wrong results affecting the business. Other essential skills are time management, critical thinking, being an expert in numbers, and good communication skills, among others.

3. Can Quickbooks software manage a property?

Yes. Quickbooks is easy-to-use accounting software that can help you keep precise and reliable real estate records.

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Real estate investment in Kenya has a bunch of benefits. It’s the only investment with appreciating power. That’s why tycoons focus on property investment across big towns in Kenya with great returns.

However, to succeed in real estate investment as a beginner, you need to have enough money, a reliable mortgage lender, and a professional real estate agent. An agent will help you get houses in areas with huge returns due to the demand. 

Once you invest in real estate, you can gain financial freedom due to a steady cash flow.

Now, what do you stand to benefit from when you invest in a real estate business in Kenya? Let’s have a look.

Benefits of Property Investment 

1. Real estate appreciates in value

This benefit is the greatest of all since there are no other appreciating investments apart from real estate. 

You all know that property investment is a long-term investment plan that could help you retire early if you do it right.

The land will never depreciate, no matter what happens. However, it takes longer to feel the fruits of property investment. 

A property worth Ksh. 1 million today can be worth 5 million in 30 years to come. Thus, you need lots of patience to invest in real estate.

2. Hedge against inflation 

It’s like inflation will always keep going high if nothing is done. However, high inflation might mean an advantage to property owners. This is because their property will increase in value and yield higher returns. 

Apart from that, realtors suffer an equally high cost of living regardless of the return on investment they get from their property. But they can cope better with inflation than employed people with constant salaries.

Beginner’s Guide to Real Estate Investment in Kenya

3. Steady Income 

If you have a commercial property in a busy area, you will experience a steady income flow throughout the year. Rental income also serves as passive income you can rely on to retire by 40.

However, factors like location and the occupancy rate contribute much to how you will get income.

In Kenya, areas with high occupancy rates are near universities, colleges, and urban centres. These areas could give you a steady rental income with high yields.

4. It’s long-term financial security 

After the inversion of the Covid-19 pandemic in Kenya, thousands of individuals closed their businesses, and others lost their jobs. 

However, property owners were stable since nothing big happened to their rental property. Instead, they faced the small problem of losing some of their renters.

Property investment needs lots of money, but it will save you in the future when other businesses and investments are drowning.

5. Tax benefits 

Another benefit of real estate investment is that the government won’t charge you tax on the whole e rental income. Instead, they will charge tax after all expense deductions, including property insurance and mortgage repayment. That’s better compared to PAYE taxes. 

6. Your tenants pay the Mortgage Loan 

If your rental property has a high occupancy rate, your tenants will take care of all expenses, including mortgage repayments and insurance. 

You even benefit from the cash flow you gain after the 50% rule and mortgage repayment. 

7. Property equity 

Property equity is the property’s value after deducting the remaining mortgage repayment. For instance, if your total mortgage repayment is Ksh 100 million, and you’ve already paid Ksh. 60 million, your property equity is Ksh. 60 million.

You can use the property equity to get a loan to expand your real estate business or invest in other ventures.

Real Estate Vs. Other Investments 

• Real Estate vs Cryptocurrency/ stock market

Real estate investment is way much better than cryptocurrency in terms of risk. Crypto investment is increasing day by day due to little startup costs, but that doesn’t make it less risky.

Real estate has a great future, but no one knows about the future of cryptocurrency. After all, it can die at any time. 

Real estate is a physical asset, but crypto is a virtual asset, and hackers can hack it and leave you with nothing. 

• Real estate vs Money mutual funds 

A mutual fund is a company that invites investors to pool money together and invest in different markets, such as stocks, bonds, or short-term debts. When the funds make profits, investors get their share. However, predictions go wrong, and investors lose their money. 

Mutual funds can have high returns on investment of around 12% annually, but they are very volatile as the market changes every time. Real estate can give you up to 10% ROI, but it’s better than mutual funds.

Mutual funds only beat real estate with their easy liquidity. You can redeem your mutual funds into cash with a few clicks, but it will take time to liquidate real estate property.

• Real estate vs Fixed deposits 

If you want to invest your money in a fixed deposit account, you choose the period you want the bank to hold your money. Within that period, you cannot withdraw the funds, and if you request, you can lose interest. As a result, you will benefit the bank for nothing in return.

In addition, fixed deposits have very low-interest rates. For example, return rates in most Kenyan banks range from 2% p.a, which is very low compared to real estate returns of 7-10%, depending on location.

The good thing with real estate, it will appreciate, though at a lower rate, and you can sell it whenever you want without breaking any contract rules. 

The Bottom Line 

From the comparisons above, real estate stands as the best long-term investment plan. The risks are lower than most online investments, which are booming nowadays. The only drawback of real estate is you will need lots of cash to invest in property, but it’s a better choice than betting on your money with stocks.

Frequently Asked Questions 

1. What’s the main disadvantage of investing in property?

You need a lot of money to buy and hold real estate. Alternatively, you’ll need an excellent credit score to get a mortgage loan to help you finance the purchase. 

2. What’s the main benefit of investing in real estate?

Security 

Guarantee of appreciation

A real estate mentor differs from a real estate agent. A mentor should be someone who has already made it in the real estate world. While a real estate agent is someone who has learned how to get good property in excellent locations and at affordable prices.

As a beginner in the real estate industry, you should have someone you look after, someone who can answer your questions when you desperately need the answers. 

A real estate mentor can be a family member or a friend with several years of experience as a real estate investor. Alternatively, you can search for successful real estate investors and befriend them. You can also attend seminars that talk about real estate investment. 

Having a real estate mentor from your town or country is not compulsory. Instead, you can link with international real estate investors via YouTube videos, real estate blogs, webinars, and social media.

This post will show you how to get a good real estate mentor. 

But first, let’s see the benefits. 

Benefits of Real Estate Mentors 

• You build a reliable network. 

A network of people with common investment goals is good for everyone. An excellent mentor will help you get new contacts where you can sell or buy property. Within the network, you can get trending industry tips to help grow your real estate business. Therefore, you’ll be among the first few to know about properties on sale or buyers. And those are very good insights to grow your commercial real estate business.

• You’ll develop professionally.

Remember, you need professional knowledge to run a complex real estate business. You should know how to handle mortgages, insurance, and other property-related expenses best. A mentor can help you learn or link you to a coach to help you know how to handle your business.

• A good mentor will give you property industry insights. 

Indeed, in every sector, there are secrets to success. So, a real estate mentor can give you tips to succeed. The good thing is it would have helped them before they showed you.

• You could become partners. 

In real estate, there emerges deals that require a lot of money. For instance, someone can be willing to sell a very excellent property at a good location. If you can’t get enough funds to buy it, you can partner with your mentor and buy the property together with the help of an attorney.

• You get a coach. 

It feels good when learning from someone who has made it in the same business as you. A mentor can lift you from a startup to a big enterprise. You only need to follow their proven guides to help you succeed. 

Now,

How Do You Get a Real Estate Mentor?

1. Through Social Media 

Social media has become the home of millions of individuals. People meet to have fun, exchange ideas, and sell products and services.  For instance, on Facebook, some groups have people with common interests. So, you can search for real estate groups in Kenya and get multiple results. In those groups, people will post a lot about real estate. You’ll also learn who’s the best in the industry, and you can inbox them to see if they could help. However, be careful not to land in the hands of fraudsters.

2. You can get a real estate mentor on blogs and websites. 

One thing you should be good at today is reading. The more you read blogs and books, the more you’ll get new ideas. So, be a good reader and google real estate blogs in Kenya. You can follow this blog to learn much about real estate, even if you are a beginner. 

Most websites will also help you to get excellent properties at affordable prices. Always ensure you join the mailing lists to be among the first people to know about new offers and deals.

3. Through YouTube videos 

YouTube is an underrated search engine, but it’s the second biggest after Google. On YouTube, you can search for real estate investment in Kenya. You’ll get multiple channels talking about how you can succeed in the industry.

Those channels can give you real tips to help you out. Again, the channel owners can coach you on what to do and when to do it. They are good researchers who will give you facts about the industry. 

4. Walk around. 

You’ll see a lot of real estate investments from different people once you walk your neighborhood. Which flats seem to be doing good in the business? Can you see or contact the owner? If yes, you can start by inviting them for a coffee in town. If they agree, the next step will be seeing whether they can open up about their investments and what has made them successful. They may even be willing to share more, but don’t take things so fast. They may think otherwise.

5. How about your landlord? 

If you stay in a rented apartment, is your landlord a good person who can serve as your mentor? If yes, you can start talking with them about property investment. But be a trustworthy friend first. Otherwise, they may withhold information from you.

Your landlord can link you to good property agents who help you search for the best houses in certain locations. 

Finally 

Getting a real estate mentor should be the first thing to do once you realize your passion for property investment. Mentors can help you achieve your dreams faster since they will give you a blueprint to follow 

Frequently Asked Questions 

1. How do I get a local property mentor?

Try joining local Facebook groups and attending local seminars that talk about the real estate business. And you may as well meet your mentor there.

2. What should I ask my real estate mentor?

At least you were sure that the new mentor can really help you. So ask questions like

• How long have you been in real estate investment?
• Which strategy has helped you grow to the current state?
• Do you have a property manager, and what takes do you assign them?
• How long can I start seeing profits?
• How do you deal with mortgage, insurance, and taxes?

With those questions, you can know the experience level of your mentor. 

3. What does a real estate mentor do?

A real estate mentor’s main job is coaching beginners so they won’t make costly mistakes in the industry.

4. Do mentors charge money?

If it’s mentorship alone, they don’t charge since they are just helping you. However, you might have to pay for that information when it comes to consultancy about deeper real estate activities.

Do you want to be a real estate blogger but don’t know where to start? We’ve all been there before, but our passion pushed us toward where we are now.

Real estate blogging can earn you lots of money once you do it perfectly. So, what do you do? How do you know the best profitable idea to follow? How do you monetize your real estate blog to start earning? 

Well, this post will answer all those questions and everything you need to know to succeed. A good idea will always fill a gap in the real estate blogging industry. 

How to Choose a Real Estate Blogging Idea 

An idea generates from your subconscious mind. That’s why Napoleon Hill, in his book ‘Think and Grow Rich’ insinuates the power of our minds. Hill says that every significant investment you see around was once an idea. 

Therefore, a relevant idea is a great tool when starting a real estate blog. That’s the first step to your success in blogging. 

When naming a real estate blog, choose a name related to the property. You can check available domains using the Whois website.

So, how do you get that idea?

1. Reading 

Reading is an excellent asset for generating ideas, regardless of the niche you are focusing on. If you are a frequent reader of other real estate blogs, chances are you will get several ideas. However, it would help if we’re open-minded to get ideas from reading.

You can also read books about property investment and passive income ideas. That will build your mind to accommodate the views you get.

2. Are you passionate about real estate?

Your passion for homes and rental properties can be a good content source. At least you’ll be blogging about something you love and enjoy doing. 

You could create blogs explaining to people the best places to buy a home or commercial property. You’ll realize that more people will love your tips if you are passionate about property investment.

3. Are you a real estate investor? Talk about it 

If you have experience in real estate investment, open a blog and talk about your journey. Talk about how you acquired your first property and how you’ve managed to grow the business.

New investors would also like to know the common mistakes they should avoid when doing property business. 

4. Local real estate events 

To be a successful real estate blogger, you need to know all upcoming local events regarding property investment. Everyone loves to know what’s happening in society and the benefits associated. 

7 Expert Tips for Choosing the Perfect Real Estate Name in Kenya

Therefore, ensure you follow relevant channels to know what property events are coming up and how they should help investors.

5. Focus on trending news affecting real estate 

Some things affect the real estate business, either short-term or long-term. For instance, the Coronavirus pandemic has been trending since 2020, and it has hurt real estate investment in Kenya.

You could also talk about housing trends affecting sellers or buyers. Your blog should help them make informed choices when buying or selling property.

So, talking about such issues can get you a massive following of those who wish to know what their property will face due to trending issues.

6. Best location for 

You can create a blog that goes deep into highlighting the best locations where certain businesses can thrive. 

For instance, talk about the best locations for buying residential properties in Nairobi. 

It could also be the best location for commercial property aimed at gyms, offices, yards, warehouses, etc. 

Another thing you could write about is the best locations to accommodate pet lovers and many more.

Remember, these are just tips, so you can go deeper into each idea and develop excellent blogs that your audience will love.

7. Home maintenance 

You can also create a blog to write about home maintenance tips. Many people like to stay in neat homes and would appreciate any information to help them. 

Write about cleaning, painting, and fixing broken doors, windows, roofs, or cabinets in the house. With this idea, you can even affiliate with businesses that offer those services, and you’ll earn through every customer referral.

8. Moving services 

Everyone gets overwhelmed when moving to new areas. It’s all challenging, from searching for the best house or home to moving into them. 

You can first tell your audience how to choose the best houses to move to. 

Second, tell them where they can get the best moving services. That will make their work easy, and they’ll trust your content.

9. Rent or buy 

Most people are stuck deciding whether they should rent or buy houses. Therefore, you can enlighten them by giving them the advantages and the disadvantages of renting or buying. 

Afterward, tell them about the best areas to rent and the best areas to buy houses. That will help them make informed decisions, and they will like and share your content.

10. All home services 

Write about all services a good home needs. Tell them how they can get those services at affordable costs. 

In addition, you could also affiliate with companies offering services like cleaning, plumbing, wiring, roofing, and others. 

How to Monetise your Real Estate Blog 

• Google Adsense 

When your blog has several unique and helpful content, you can apply to Google Adsense via the Search Console account. Once they approve your account, they’ll start running relevant ads on your blog. You’ll earn some cents if a reader clicks any of the displayed ads.

• Affiliate marketing 

Affiliate marketing is the most reliable way to earn lots of money with a real estate blog. With affiliate marketing, you will display tracked ads or links on your blog from property sellers, property maintenance buy-to-let properties, and many more.

Once your reader clicks on the ads or links and makes a purchase, you’ll earn a percentage.

However, the more people you have on your site, the more likely you are to link customers to merchants.

• Sell your property 

If you own property and would like to sell, you can display them on your blog to attract potential buyers. 

In addition, if you have rental apartments and single-family houses, you can get clients via your blog. All you need to do is write to your audience explaining the goodness of your apartments. 

Conclusion 

To succeed in real estate blogging, you need to be aggressive in posting new content, which will hook more readers. Remember, all three monetization criteria mentioned in this blog depend on high traffic. 

Frequently Asked Questions 

1. Is real estate blogging in Kenya worth it?

Yes. If you put in the right effort, you will earn a lot of money with a real estate blog through affiliate marketing, Google Adsense, and selling your property or advertising your rental property.

2. How frequently should I post real estate blogs?

To succeed in real estate blogging, you should update posts each week. This trick also works for all other types of blogs.

3. What should I include in my real estate newsletter?

The first aim should be to help your subscribers with information helping them make sober decisions about property. Afterward, you can send them listings of affordable properties in different locations. 

4. How often do successful bloggers post?

Successful blogging involves updating your blog with helpful information weekly. Some blogs require less content than others. For instance, a news blog is updated more frequently than a real estate blog.

Are you torn between starting residential, commercial, or industrial real estate? It’s overwhelming to decide what to create, mainly due to the different returns on investment with each type of real estate. As a result, most investors have decided to come up with a mixed-use property that serves at least two purposes.

Mixed-use properties have been rising recently in Kenya, especially in Nairobi metropolitan area. Chances are, residential estates should be near commercial real estate because the residents will need to visit retail stores frequently. That’s why investors have thought of combining residential and commercial real estate.

This guide will explain everything about mixed-use developments in Kenya and how you can succeed with the investment.

What is a Mixed-use Development?

A mixed-use development consists of single property with multiple purposes. For instance, you can combine residential with retail stores. It’s rare to get vacant mixed-use properties since it has many clients. 

These developments can consist of a wide area or just a few houses. The bottom line is that residential dwellings will be in the same area as commercial properties. 

The commonly used mixed-use development is commercial at the front and residential houses at the back; this setup is known as horizontal development.

Other investors prefer ground floors for commercial use, and the rest of the building accommodates residents; this setup is called vertical development.

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Benefits of Mixed-use Properties 

1. Proper management 

Once you have all your property in one place, it will be simple to manage. You won’t have to travel to different locations to collect data because it’s all in one place.

In addition, when doing repairs, it will be cheaper because you’ll pay for bulk services.

Furthermore, you’ll also be closer to your tenants, and you can answer questions with ease. For instance, if there is a water shortage, you can organize more water for your tenants without going to separate properties.

2. Broad client base 

With mixed-use property, you will not stay long without tenants. If you don’t get a residential tenant, you’ll get a commercial one. 

In addition, since it’s an area serving a more significant population, more people would like to settle in places close to social amenities and retail shops. In addition, the business people would also like to set up a business in the area since there are ready customers.

3. Closer social amenities 

Nowadays, everyone likes to stay in places with schools, security, hospitals, proper transport, and communication channels.

When an area has lots of mixed-use developments, it will attract the establishment of better social amenities.

Furthermore, due to the high cost of living in the country, most people would prefer walking to and from work, school, hospitals, etc. At least, they’ll save some coins by doing so. And that’s a big reason they would prefer staying in an area serving all their needs. 

Areas with mixed-use properties like Athi River, Kitengela, Huruma, Kiambu, and Ruiru, among others, tend to develop faster than areas set for residential or commercial property alone.

Mixed-use property triggers the growth of small and medium businesses. As a result, your property returns grow from time to time.

4. Less risk to investors 

You can survive with the booming side when one investment type goes down.

For instance, in 2020, most businesses closed down due to the pandemic. As a result, commercial real estate went down in terms of ROI. However, the residential sector was not affected that much. So, whoever had mixed-use property managed to pay their mortgage and bills using residential income.

Therefore, mixed-use property poses a lesser risk to the investor if one side subsides in returns.

5. Higher returns 

Indeed, commercial property has higher returns because the charges are usually high. A single retail storeroom in Nairobi could cost above Ksh. 20,000, while a single residential house costs at least Ksh.3000. Such a huge difference. 

Mixed-use property owners gain from commercial and residential houses. And the overall ROI is usually higher than that of single-use properties.

Shortcomings of Mixed-use Property 

• They are very costly to set up 

Since you need two types of properties, you may have to dig deeper into your pockets. Whether you buy undeveloped land or a complete property, you’ll need a lot of money. In addition, the down payment is also huge. 

• Conflict of interest among the tenants 

Residential and commercial tenants may have different interests like cleanliness and usage of shared things like water and electricity.

As an investor, you’ll have a hard time reconciling tenant disputes, still due to congestion. The only sure way is to ensure everyone has their metered water and electricity. That will reduce conflicts during the usage of those amenities.

• In case of a fire breakup, you may lose. 

Fire breakups are common in congested areas. When little fire is not prevented from spreading, it can affect multiple properties, causing losses to owners.

However, insuring your property against such risks can help you. But once a regular income source is dormant, you can reconstruct it.

Is Mixed-use Property Investment a Good Idea?

Well, the benefits outdo the demerits, so yes, mixed-use is an excellent idea that can help you have huge returns.

You’ll also have a humble time managing all your property in one area.

Frequently Asked Questions 

1. What’s the main benefit of mixed-use development?

Diversification proves to be the main benefit of mixed-use investments. With mixed-use property, you will thrive, even when one side of the property is doing poorly.

2. Why do people love mixed-use rentals?

People like places where they can access everything they’ll need to survive. That calls for more tenants in mixed-use areas. In addition, the residential part tends to be cheap compared to residence-only property.

3. What comes under a mixed-use development?

Modern mixed-use properties have residential and commercial spaces such as retail stores, offices, industrial, hospitals, hotels, and other recreational areas.