The Do’s and Don’ts of Furnished Apartment Business In Kenya
The furnished apartment business is booming in Kenya. Statistics show how this business is gaining momentum like never before. According to the Kenya National Bureau of Statistics, demand for serviced apartments has been on the rise, recording relatively high occupancy rates of above 70.0% in 2017, compared to hotels in Nairobi at 35.5%, as published by Vaal Real Estate. Furnished apartments are becoming a trend as most visitors in big towns and cities opt out of hotels for convenience and affordability. While this business is undoubtedly lucrative, things can go south, and you hit a snag trying to make a fortune.
Yes, if you are looking to invest in this business or already running one, you need to understand the things that can make or break your business. This will help you avoid mistakes and identify opportunities for growth and success.
In this article, we give you the do’s and don’ts for the success of your furnished apartment business in Kenya.
The Dos of Furnished Apartment Business In Kenya
For the success of your furnished apartment business, you need to get several things right. The good thing is that you don’t need to break the bank or crack your brain to understand and execute them. Some of the top picks for a successful furnished apartment business in Kenya include:.
Conduct Thorough Market Research
The first step in the right direction for the success of any business is conducting thorough market research. The furnished apartment business is not an exception because your findings will help you understand your customer needs and tailor your apartment to meet their needs.
Consider practical research methods such as surveys to understand your customer preferences. You can even ask them directly or find ready data from other researchers and curve them to suit your business.
Secure the Right Location
Location can make or break your business and you don’t want your furnished apartment business to crumple just because of inappropriate location. A good location attracts more customers. Check the customer preferences and confirm whether your target location meets their needs. You can go to high-end places such as Kileleshwa, Kilimani, Lavington, Muthaiga, Parklands, or Westlands. Research and find the best locations to put your furnished apartment business. If you are not sure, statistics won’t lie. Find some relevant statistics and choose areas that thrive with this business.
Focus on Quality Furnishings
As the name suggests, a furnished apartment should be exquisite. Yes, the interior décor should be eye-catching and seamlessly impress visitors. The best way to furnish your apartment is to use quality furnishings. Prioritize quality furnishings and amenities to attract and retain tenants.
Remember, you don’t have to drain your financial muscle to make your apartment exceptional. You can use top-grade household selling platforms like Corido Marketplace to find unique and stylish household items that set your apartments apart. You will get second-hand furniture, decor and electronics at an affordable price. Don’t limit your thoughts to those expensive household items.
Offer Additional Amenities
Your customers want the best experience while staying in your apartments. Whether they are going to stay for a short time or longer, you have to transform their experience to unforgettable levels. Just be unique and provide additional amenities like free Wi-Fi and security, then watch how your tenants will talk well about your apartments.
Utilize Technology such as CCTvs and Lock Doors
Technology paints a good impression about you and you would want to be the first to get that good image. Stay ahead of the game and utilize technologies like CCTvs and smart door locks. These initiatives show the tenant that you value their well-being. However, don’t overdo it because some technologies might infringe on their privacy and cause inconveniences.
Maintain a Strong Online Presence
Nowadays, it is hard to trust a business that doesn’t have an active website or active social media accounts. Customers want to reach you unanimously while being convinced they are dealing with a legitimate business. Simply create a professional website and utilize online listing platforms to showcase your apartments and attract tenants.
Remember, your strong online presence will give them confidence because they can find you and access your services whenever they need them.
Develop a Clear Rental Agreement
With the furnished apartments business, you deal with people of diverse backgrounds and professions. Others have ill motives and if you don’t tie them with an agreement, you will count losses if they don’t honour verbal agreements. Don’t trust anyone.
Just develop a clear rental agreement outlining the terms, conditions, expectations, and penalties. You can look for a With a rental agreement, you can confidently walk into a court of law to seek compensation for damages or breach of agreements.
Provide Excellent Customer Service
Customer service is a litmus test of how you value your customers. Make sure your customer service prioritizes customer needs. Your team should be responsive to tenant inquiries and address any issues promptly to maintain positive relationships.
The Don’ts of Furnished Apartment Business In Kenya
For the success of your furnished apartment business, there are certain things you need to avoid. Here are some of them.
Skimping on Location
Skimping on location is a terrible mistake and you should never do it. Remember, location impacts your occupancy rate and consequently, your rental income. If you choose a bad location, you might struggle to attract tenants. This will translate to low income.
Cutting Corners on Furnishings
As aforementioned, quality furnishing attracts tenants, and you cannot afford to cut corners on furnishing. Low-quality furniture reflects poorly on your business and discourages potential tenants.
Neglecting Essential Amenities
Tenants, like other customers, love uniqueness and comfort. Wi-Fi and security for example, are becoming essential amenities for tenants. If you overlook these basic amenities, you will probably make your apartments less competitive.
Ignoring Maintenance Needs
Tenants want a seamless experience. They want every gadget and system to be in good condition. If you ignore the maintenance of your systems say electricity, drainage, and other systems, they will not function optimally and your tenants will be dissatisfied and discouraged from renting your apartment.
Pricing Your Units Incorrectly
Pricing is key in any business and so does furnished business apartments. Overpricing will chase customers, while underpricing can bring you losses. Just conduct proper research to ensure your rental rates are competitive while still generating profit.
Overlooking Legal Considerations
The last thing you want to try is to be on a collision course with the authorities. Yes, if you don’t comply with legal requirements, authorities can give you a rough time and make your business extremely difficult to run. Check and comply with all relevant regulations and tax requirements related to rental properties.
Underestimating Marketing Costs
Marketing is a tool that introduces you to potential customers. If you want more and more customers, then you have to market. Marketing requires a budget and if you underestimate marketing costs of your apartment, you will struggle to reach your target audience effectively.
Forgetting about Selling Surplus Furniture
Perhaps you might need to close your business or refurnish it to meet evolving customer needs. One mistake you would probably make is to dispose of surplus furniture. Remember, furniture is expensive, and disposing of is a loss. If you want to sell your surplus furniture, consider Corido Marketplace because this platform will allow you to effortlessly find a suitable buyer for your furniture.
You can sell them from the comfort of your house or book an agent to sell them on your behalf. Eventually, you will earn money and use it to buy new furniture or simply add to your revenue.
Conclusion
There are many dos and don’ts if you are to run a successful furnished apartment business in Kenya. Nevertheless, you don’t need to grab them all at once. Find the options that work for you and implement them without hesitating. However, be smart in how you stock and sell your household items, because this is where you can save yourself a lot of money. Visit Corido Marketplace today and buy unique second-hand household items or sell yours to declutter.
