Tuesday, February 20, 2024
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Having a residential Plot in Kenya? Why You Should Consider Building an Airbnb

Airbnb is one way of investing in real estate to build wealth and generate passive income. Some common ways to invest in real estate include buying plots, investing in rental properties, flipping houses, etc. As the real estate grows and diversified, the hospitality industry has grown immensely and most investors are now considering investing in Airbnb.

Airbnb rentals are profitable ventures that have numerous advantages to the owners when done right away. Airbnb rentals refer to the properties or accommodations that are listed on the Airbnb platform and available for short-term rental by guests. These rentals can include entire homes, apartments, rooms, or even unique spaces such as treehouses or boats. Rentals are typically owned and managed by individuals, known as hosts, who list their properties on the platform and set their own prices.

Guests can search for and book rentals based on location, price, and other criteria. The platform also provides a messaging system for guests and hosts to communicate and coordinate details of the rental. In this blog, we will share some advantages of investing or building in Airbnb in your rental property. Before we share the advantages, it is important to research the local market and regulations, as well as consider the costs that come with maintaining and managing the property.

Advantages of building airbnbs in your residential plot

  1. Additional income

Building Airbnbs rentals can provide a steady stream of income, particularly if the house is located in a popular tourist destination. The amount of income earned will depend on factors such as location, size of the property or room and the number of bookings. Further, hosts can also increase their income by offering additional services such as providing meals, offering airport transportation or renting out equipment such as bicycles.

  • Flexibility

Airbnbs allows the owners to have more control over their schedules and to be involved in the day-to-day operations of the business. They are flexible for both hosts and guests. As the owner you can set your own availability and prices. You can also choose to rent out the entire property, a private room or a shared space.

  • Airbnbs gives you room for creativity

You can add unique features to your airbnb and make it stand out from the competition e.g. custom decor, unique amenities or local experience or tours. However, it is also important to be aware that running a BnB also involves hard work, long hours and potential ups and downs, if not managed correctly it could result in financial loss. As with any business venture, it is important to conduct thorough research and have a well-thought-out business plan before starting a BnB.

What to Consider When Setting Up an Airbnb

When setting up an Airbnb, there are several things to consider to ensure a successful and profitable experience. Below are a few things that you need to put into consideration before you invest in this type of rental house.


The location of an Airbnb property can have a significant impact on its popularity and earning potential. Here are a few things to consider when choosing the location of an Airbnb property:

  • Tourist attractions – Properties located near popular tourist attractions, such as beaches, historical landmarks and cultural destinations, tend to be more in demand.
  • Transportation – Properties located near public transportation, such as subway or bus stations, airports and train stations can be more convenient for guests and increase demand.
  • Local events – Properties located near popular events such as music festivals, sporting events and conferences, can see a spike in demand during those events.
  • Safety – Properties located in safe and secure neighbourhoods are more likely to attract guests.
  • Amenities – Airbnb located near grocery stores, restaurants and other local amenities can be more convenient for guests.

By carefully considering the location of your Airbnb property you increase the property’s earning potential and attract more guests

Property type

The type of property listed on Airbnb can also have an impact on its popularity and earning potential. Some popular types of properties include:

  • Entire home/apartment – Renting out an entire home or apartment can provide guests with more privacy and space and can be more profitable for hosts.
  • Private room – Renting out a private room within a home or apartment can be a more affordable option for guests and also allows hosts to earn additional income while still living in the property.
  • Shared space – Renting out a shared space such as a common area or shared room can be a more budget-friendly option for guests, and can also be a great way for hosts to meet new people.
  • Unique properties – Some hosts list unique properties such as treehouses, these can be very attractive for some guests and can command higher prices.
  • Luxury properties – High-end properties with high-end amenities and luxurious features can attract guests looking for a more upscale experience.
  • Multi-unit properties – Hosts who own multiple properties can list them on Airbnb, increasing their earning potential and diversifying their portfolio.
  • Co-hosting – Hosts can also partner with other hosts to manage multiple properties, expanding their offerings and increasing their earning potential.

The type of property that a host chooses to list on Airbnb will depend on factors such as their personal circumstances, location and budget. By considering these factors and researching the competition, hosts can make an informed decision about the type of property that is right for them.

As the property owner, decide what type of property you want to list on Airbnb. It could be a private room, a shared space or an entire home.


Pricing is another factor you need to consider in your airbnbs. The best way is to research similar listings in your area to get an idea of what the market will bear. Further, you can have more added value that will make yours stand out from the rest.

Challenges of setting up an Airbnb


There may be a lot of other Airbnb listings in your area, which can make it difficult to stand out and attract guests. There are several strategies that can be used to compete with other companies in the short-term rental market like Airbnb:

  • Differentiation – Offer unique and desirable amenities or services that set your properties apart from others.
  • Pricing – Analyse the prices of your competitors and adjust yours accordingly.
  • Location – Focus on renting properties in high-demand areas or tourist destinations.
  • Marketing – Use social media, email marketing, and other digital marketing techniques to reach potential customers.
  • Customer service – Provide excellent customer service to attract repeat customers and positive reviews.
  • Optimize your listing – Make sure your listing is complete, visually appealing and with good descriptions which will help you to stand out and be more attractive to potential renters.
  • Develop a loyalty program – Reward frequent renters with discounts, perks, or other incentives to encourage repeat business.
  • Keep an eye on the competition – Keep track of what your competitors are doing, and adapt your strategy accordingly.

Price fluctuation

It can be difficult to determine the optimal price for your Airbnb, as demand and competition can fluctuate.

Guest expectations

Guests may have certain expectations of your Airbnb, and if these expectations are not met, they may leave negative reviews.

Legal issues

There may be local laws and regulations that govern short-term rentals, such as zoning laws and business licenses. It is important to familiarize yourself with these laws and ensure that your Airbnb complies with them.


As a host, you have a responsibility to ensure that your Airbnb is safe for guests. This may involve implementing safety measures such as smoke detectors and carbon monoxide detectors.

In conclusion, investing in airbnbs in your plots is an ideal way to increase the value of the property and also generate consistent income. If you have a property in Nakuru, Kisumu, Ngong or any other area, you can consider building airbnbs and have an income from your real estate investment.

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