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.
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.