Top 4 characteristics to consider when choosing a profitable rental property in kenya
There are different features that are
attached to different types of real estate investment. That is why it is easier
to identify a rental property from commercial property or industrial property.
in this article we are going to talk about the various characteristics/features
of rental property. They include;
Location/ Neighborhood
Neighborhood determines the type of tenants
you may have. It also determines the value of property. in Kenya, high end
areas like Kilimani and Kileleshwa will have high earning people living in such
areas. Low end areas may also attract middle class income people as well as low
income people. The population is always higher in low end area. Low end areas
may mean areas that are composed of slums. Owning a property in areas such as
Kibera (low income region) would be cheaper than owning one in Westlands which
is a high end area.
Amenities
The type of amenities found in rental
property zone include; schools, hospitals, churches as well as parks. It would
not be advisable to have a park in the middle of an industrial area where there
is noise pollution and air pollution. Neither could schools work in such
regions. Rental property is characterized by access to amenities in a calm and
safe manner.
Ps. As a tenant if you need to rent out a
place, consider the quality of education offered in the area you are moving to.
Also consider the size of the house and your family needs. Security is also
paramount when it comes to renting out. As an owner, consider purchasing
properties in places with good social amenities and security. Such attracts
renters and creates a pull of demand in rental property. it can also encourage
you to have a higher rate of return.
Future Development
The mind of an investor should be focused on
how their property affects or will be affected by future developments. In
Kenya, it is essential to learn the spatial plans of an area (now county
development plans). This can help you determine how to adjust your property at
the time to suit the future. A good rental property investment region can be
equated to a region with high constructions which means potential growth of
such a place.
Job Market
Employment is one of the features that
determine the fate of rental property. Regions that have high growth in terms
of employment have a higher chance of having tenants than the rest of the
regions. It is necessary to check job listings such as Brighter Monday, My Job
Mag among others and see the frequent job locations in Kenya. This can help you
understand that the regions that appear the most are attractive to tenants and
also determine that in few years, the prices or value of property may rise.
The final word,
Rental property maybe one of the best types
of real estate investments but if not well determined during investment time,
the whole process may lead you to incur expenses that were not planned about
such as vacancy costs in the first place. It is wise to determine how well
investing in rental property gives you returns.
