Starting an Airbnb is a lucrative venture that involves developing spaces and renting them out in the form of a house or apartment to those traveling, on holiday, wanting to have a party and fun, or just going out. It’s a growing business across the country, becoming an excellent opportunity to earn extra income. In Nairobi, there are more than 1000 listings, indicating its growing potential.

Is Airbnb business profitable in Kenya?

With good management and proper marketing strategies, Airbnb can be profitable in Kenya. Kenya has seen rapid growth in the Airbnb market in recent years, with the number of Airbnb listings in Kenya increasing by more than 300% from 2017 to 2023. With competitive prices, a wide range of local amenities, and a wealth of scenic attractions, many travelers now choose to book an Airbnb in Kenya as their accommodation of choice. For instance, a one-bedroom (1br) Airbnb in Mtwapa can charge an average of Ksh 3000 per day, which equates to about Ksh 69,000 per month, considering that you rent for only 23 days per month.

Requirements to Register an AirBnB in Kenya

• Register your AirBnB with the Kenya Tourism Board and obtain a valid business registration certificate by filling in the application form from the website and paying a one-time application fee of Ksh 1000.

• Pay the annual license fee of KES 26,000 per unit.

• Register the business with the Kenya Revenue Authority.

• Comply with safety and health regulations in Kenya, including fire safety, evacuation plans, and building inspection.

• Original deposit slips for both the application and license fees.

• Ensure your property meets the minimum requirements for short-term rental accommodation, such as adequate space, appropriate amenities, and good physical condition.

• Obtain a valid Kenyan residential rental license, usually issued by the local county or city council.

• Ensure that the rental arrangement is fair and transparent, including the terms of occupancy, rates, and the duration of the let.

• Your establishments’ tariff/rack rates.

• Obtain insurance cover for your rental property.

• Comply with any applicable regulations related to renting private accommodation, such as registration with the Kenya Accommodation Alliance.

• Apply for a bank account in your or your business’s name to facilitate payment and other financial transactions.

How to Make Money With Airbnb: 5 Unique Ways

Host Experiences

Earning from Airbnb doesn’t necessarily mean you have to own a rental space. Each traveler is looking for adventure. You can take them to fantastic places in the area, possibly nearby landmarks, ranches, and farms, or get them into creative activities.

You can offer local experiences to your visiting guests through Airbnb Experiences. These can range from activities like city tours, cooking classes, and bike rides to full-day excursions. You will earn a commission from each experience booked.

Hosting

This is the best way to get money from rental spaces in Kenya. You need to own a rental space you wouldn’t mind renting out to strangers. Currently, there are many platforms that you can use to market your listing. They include Jiji, Bookings, Airbnb, and social networking sites like WhatsApp, Facebook, and Instagram. Take good pictures of the place and post them.

Choose the ideal pricing for your listing. However, this may vary depending on the location, period, house’s interior design, services, amenities offered, and extras available. You can charge different prices on daytime, nighttime, weekdays, and weekends. Set something that fits into your terms.

Try using smart hosting tools to optimize your bookings. You can earn extra revenue by increasing your occupancy rate, offering discounts, and setting up payment plans.

Become a Host Ambassador

Become a Host Ambassador, and you can make money by referring new hosts to Airbnb. As a Host Ambassador, you’ll receive a commission for each successful referral.

Manage Airbnbs

Not many people can manage their rental spaces on their own, which creates an opportunity to make some money. The good thing is that you don’t need to own a rental space. All you need is experience in managing rental spaces.

If you want to manage multiple Airbnb listings, consider becoming a property manager. A property manager will help manage guests, handle maintenance requests, market your listings, and more. You can earn a commission from each booking that you manage.

Offer Services

Offer add-on services to your guests to help make their stay more enjoyable. This could be anything from grocery shopping, airport transfers, housekeeping, or yoga classes. You’ll earn an extra income from each service that you provide.

Conclusion

Airbnb businesses can be highly profitable in Kenya, depending on several factors. The property you want to lease out matters. In some places, the property markets itself as people want to be there. The location of Airbnb also matters. In remote areas, you will require to embrace more marketing skills. You can set up your rental space in cities like Nairobi, Nakuru, and Mombasa or near amenities like parks and beaches in Watamu and Mtwapa and along the lakeside. Next, adopt an aggressive marketing strategy. You don’t necessarily need to own space to make some money from Airbnb. Look for creative ways to make a nice pay by offering experiences, services, or managing property.