More often than not, there is someone somewhere in Kenya looking to find accommodation for their next getaway. It could even be international guests, seeking more than just the typical hotel experience. Airbnb business platform is one of the most sought-after platforms when guests find themselves in a new city or town. One such town is Eldoret. True to it, several people in Eldoret are reaping well from listing city apartments as well as countryside homes as vacation rental spaces.
With over 300 registered rental spaces on Airbnb, the business in Eldoret is increasingly becoming popular. It doesn’t help that Eldoret is the leading growing town in Kenya hence a lot of organizations are moving here. To some degree, being the city of champions has contributed to this big time.
Making the business successful and maintaining good ratings, however, requires a slightly different type of business understanding. And from what I’ve gathered, here is a breakdown of what you need to consider in starting and managing an Airbnb business in Eldoret.
Airbnb Business’ Location
A paramount feature when it comes to the business is the location. How convenient is the location in terms of providing the ultimate destination experience?
According to a property investor here in Eldoret, the Eldoret-Kisumu highway, especially Pioneer, Langas and Kapseret areas is popularly known by investors as a lucrative location to establish a space for your Airbnb business. The main contributing factor is its proximity to the CBD which is equally proportional to its proximity to the Eldoret International Airport. The route is also popular for its convenience when it comes to shopping malls as well as entertainment joints, hence providing the full city of champions’ ultimate experience.
Amenities for the Airbnb Business
Talking of convenience, how sufficient are the amenities provided within the space?
Spaces that offer necessary amenities such as security, parking, Wi-Fi, Netflix, and a fully functional kitchen are most preferred. Other advanced amenities such as a gym and swimming pool can further command higher rates on the accommodation spaces.
The Spaces’ Running Costs
Think of the establishment and the running costs as well. Great investment should go into the furniture, electronics, the necessary permits, a good housekeeping plan as well as maintenance of the space.
A word from an expert; you should be able to deduct your expenses from the returns, to establish the running costs of your space in case they rise or perhaps drop. That way the receipts can ensure that you are running your Airbnb business at a constantly fair profit.
Where is the space located? How many guests can it accommodate? What is the number of rooms available? And finally what are the amenities provided? The best way to look at this is by evaluating similar spaces for the average rates while ensuring you still make a profit. The pricing, however, can also be flexible depending on seasons and the demand rate.
It is established that August and September, as well as December, are considered the high season for visitors in Eldoret; while January to July is relatively lower. The high season therefore could be a great time to capitalize on your Airbnb business.
Little tip: Smart Pricing feature on Apps such as Airbnb can also come in handy to help set a price considering it puts several important factors into consideration.
The Platform to List your Space
The best platform in terms of visibility; from what I’ve gathered, is social media. Facebook, Instagram, and Twitter. Facebook was highly seconded as there are groups as well as pages dedicated to Airbnb business for clients looking to find.
Platforms such as the Airbnb App and other websites are also effective. Especially if you have great reviews, the system recommends your space among the most sought-after.
As great as they are, other factors can only go so far. Taking it a step further and capitalizing on the marketing could add major value to your space offering.
Consider using a marketing agent, especially when starting the business. Agents engage their potential customer base and connect them to their desired spaces. After all, word of mouth works more effectively than applications.
And on that note, ensure good reviews about your space; because that’s going to influence whether client books or not.
Permits and Licensing
Legally, any Airbnb business is required to be registered and licensed by the Tourism Regulations Authority (TRA) before it goes on the market. This regulation attracts a one-off application fee of Kshs.1, 000 from the host as well as an annual license fee of Kshs. 26,000 per unit owned.
Furthermore, like any other business regulated by the given county government; a single business permit is mandatory. Depending on the location, and size among other factors the cost varies.
Other costs that could be incurred are the National Environment Management Authority (NEMA) license fee, a home insurance plan, and possibly a Digital Service Tax (1%) that applies to every other service offered in the digital marketplace.
That concludes the most important factors to consider in starting and running effectively an Airbnb business in Eldoret. Airbnb business, therefore, is a competition for superiority in the accommodations offered really! And together with the right marketing and real positive reviews; the business should be nothing short of a success.
What are some of the things you look at when considering booking a space? Engage with us!