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Rental houses Advice
migi
#1 Posted : Friday, May 31, 2013 7:10:23 AM
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Joined: 11/19/2009
Posts: 3,142
Iam in the process of constructing rental houses in Kitengela. For those familiar with the market, which is the best between 2Broom or 1Broom rentals.Best implies which has high demand. the plot is near main bus station next to slaughter hse.
a4architect.com
#2 Posted : Friday, May 31, 2013 8:45:23 AM
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Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@migi. this will help. http://a4architect.com/2...ject-for-rent-at-thika/

Return on Investment is the same, around 7 years if your units are designed with viability in consideration.
Ensure you dont mix the2 due to social conflict. 2 bdr renters usually hava families while 1 bdr renters are single hence social clash.
As Iron Sharpens Iron, So one Man Sharpens Another.
migi
#3 Posted : Friday, May 31, 2013 9:20:38 AM
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Joined: 11/19/2009
Posts: 3,142
a4architect.com wrote:
@migi. this will help. http://a4architect.com/2...ject-for-rent-at-thika/

Return on Investment is the same, around 7 years if your units are designed with viability in consideration.
Ensure you dont mix the2 due to social conflict. 2 bdr renters usually hava families while 1 bdr renters are single hence social clash.


@a4architect,
Thank you very much for great advice.
I was thinking of mixing the 2 such that one row is 1br while another is 2br. but i will heed your advice to separate.
The building is projected to be 4 storeys floor building.Is it advisable to separate per floor rather than rows in the same floor.?
a4architect.com
#4 Posted : Friday, May 31, 2013 11:04:04 AM
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Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@migi..welcome. Since return on investment is the same for all, my advice is just stick with all 2 bdm or mix only 1bdm and bedsitter units for the whole block.
As Iron Sharpens Iron, So one Man Sharpens Another.
migi
#5 Posted : Friday, May 31, 2013 11:32:34 AM
Rank: Member

Joined: 11/19/2009
Posts: 3,142
[quote=a4architect.com]@migi..welcome. Since return on investment is the same for all, my advice is just stick with all 2 bdm or mix only 1bdm and bedsitter units for the whole block.[/quote

Asante sana . your advice highly appreciated.
will be visiting you soon.
stock.enigma
#6 Posted : Friday, May 31, 2013 12:42:21 PM
Rank: Member

Joined: 8/14/2009
Posts: 244
migi wrote:
Iam in the process of constructing rental houses in Kitengela. For those familiar with the market, which is the best between 2Broom or 1Broom rentals.Best implies which has high demand. the plot is near main bus station next to slaughter hse.



My opinion. Not professional. I will go for 1 bedroom, targeting single occupants. Singles pop is increasing as many young people are not keen on marriages any more.
a4architect.com
#7 Posted : Friday, May 31, 2013 1:09:47 PM
Rank: Veteran

Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@stock.enigma. Very true. Kitengela area has a very high population of singles due to the EPZ factories. Along thika road, the singles population is again very high due to Universities, namely KU, JKUCAT and KSMS/USIU etc.
Same is replicated in lesser scale along Ngong road, Mombasa roa and Waiyaki way.
As Iron Sharpens Iron, So one Man Sharpens Another.
Rahatupu
#8 Posted : Friday, May 31, 2013 2:55:54 PM
Rank: Veteran

Joined: 12/4/2009
Posts: 1,982
Location: matano manne
a4architect.com wrote:
@stock.enigma. Very true. Kitengela area has a very high population of singles due to the EPZ factories. Along thika road, the singles population is again very high due to Universities, namely KU, JKUCAT and KSMS/USIU etc.
Same is replicated in lesser scale along Ngong road, Mombasa roa and Waiyaki way.



@Migi, heed a4arc, and welcome to my neighborhood around slaughter house near the water tanks opp Ashut.

here is My experience:

1. Single units are in high demand but the costs associated with their management is an issue to consider before embarking on brick and mortar. One such cost is septic exhausting and water management. Compare this a flat with say 50 units will fetch you 8000 per unit per month on the higher side. The cost of such a building will be over 40 million. Cost of management could be about 50k per month. Compare with:

2. Two bedroom self contained units on a similar sized plot will fetch you about 20 units each generating 15,000 per unit per month. Will cost less than 30 million to build and monthly expenses may not exceed 30k.

I have 2 bedroom units and don't envy my neighbours with their many singles.
kazee
#9 Posted : Friday, May 31, 2013 3:45:08 PM
Rank: Member

Joined: 9/18/2006
Posts: 131
I personally build bedseaters and 1 bedroom units. With 2 bedroom units, note that these are people who can afford rents of 25k+ and would therefore need parking too. So with 2 bedroom units, consider leaving space in ground floor, which translates to reduced income. Just my 2 cents
migi
#10 Posted : Monday, June 03, 2013 12:42:29 PM
Rank: Member

Joined: 11/19/2009
Posts: 3,142
@ Rahatupu. Im just opposite Ashut near water tanks. We must be neighbors. Your advice and guidance highly appreciated.
- how much is 2BR rent in that area? Demand?
- Im thinking ground floor facing the road to design such that tenant can operate as a shop. but have reservation.reasons is security concerns as I prefer the two main doors only as enterance . what is the advice .
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