Investing in rental properties in Kenya and how to get started

Investing in rental properties in Kenya

February 7, 2023

Investing in rental properties in Kenya can be a lucrative and rewarding experience, providing steady passive income, long-term financial stability, and the opportunity to grow your wealth. With its fast-growing population, expanding economy, and a shortage of affordable housing, rental properties are in high demand and can provide a stable and profitable investment. In this article, we will look at the benefits of investing in rental properties in Kenya, as well as the steps you need to take to get started.

Why invest in rental properties in Kenya?

There are many reasons to consider investing in rental properties in Kenya, including:

  1. High demand for rental properties: With a fast-growing population and a shortage of affordable housing, rental properties are in high demand in Kenya. This means that, as a landlord, you can expect to have a steady stream of tenants and reliable rental income across the country.
  2. Potential for steady passive income: Renting out a property can provide you with a steady passive income, which can be used to supplement your other sources of income, such as a salary or savings.
  3. Potential for long-term capital appreciation: Real estate values typically increase over time, so investing in rental properties can help you steadily grow your wealth in the long-term.
  4. Tax benefits: Investing in rental properties can also offer tax benefits, including the ability to write off mortgage interest, property taxes, repairs, and maintenance costs as well.
  5. Diversification of investment portfolio: Adding rental properties to your investment portfolio can help diversify your investments and reduce your overall risk.

Getting started with investing in rental properties in Kenya

If you’re interested in investing in rental properties in Kenya, there are several steps you need to take to get started:

  1. Conduct market research: Before investing in rental properties, it’s important to conduct thorough research to determine the demand for rental properties in the areas you are interested in. This will help you determine the rental rates, the competition, and the types of properties that are in high demand.
  2. Develop a budget: Determine how much you can afford to invest in rental properties, including the cost of the property, repairs, maintenance, and ongoing expenses such as property taxes and insurance.
  3. Get financing: If you don’t have enough cash to purchase a rental property outright, you will need to secure financing. There are several options available, including a mortgage, a home equity loan, or a line of credit. Our preferred financiers include KCB Bank Home Loans, Housing Finance Homes & Mortgages, NCBA Mortgages and ABSA Home Loans.
  4. Find a property: Once you have your budget in place, you can start looking for properties to invest in. Consider working with us; we specialize in rental properties and can help you find the best properties for your needs and budget.
  5. Conduct due diligence: Before purchasing a rental property, it’s important to conduct due diligence to ensure that the property is in good condition, has no liens or outstanding debts, and is in compliance with all relevant laws and regulations.
  6. Close the deal: Once you’ve found the right property and conducted due diligence, you can close the deal and become a landlord.

Investing in rental properties is a smart and profitable way to build wealth and achieve your financial goals. Take the time to consider the benefits of this investment opportunity and consider making rental properties a part of your investment portfolio today. With years of experience and a deep understanding of the Kenyan real estate market, Touchstone Properties can help you find the right property to invest in, navigate the purchasing process, and manage your rental property effectively.

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