Airbnb is one of the businesses to start in Kenya and earn profits but of late, the business has been saturated. Airbnb business is now like Mpesa business where almost everyone wants to invest and share the little money which is circulating in the sector.
If you want to start this business, you better do it in your own house you built because you will not be paying rent. But if you are going to rent a house and then rent it out as Airbnb, you will in most cases make losses.
If you go every town, you will notice that there are many banners for Airbnb all over yet there are also hotels and guest houses offering the same services. The competition is now stiff.
Airbnb is mostly profitable in places like Nairobi and Mombasa where the population is high especially for foreigners.
Best season for Airbnb business in Kenya
The best season for Airbnb business in Kenya is December, during holidays and special events. Weekends are also good for the business. But during weekdays and mid-month, the business is not much profitable.
If you start Airbnb business in Kenya at the moment, target Nairobi, Mombasa and Kisumu. Below are the estimated profits from the business.
Bedsitter—Ksh 5,000 to Ksh20,000 per month
1 bedroom—Ksh 7,000 to Ksh25,000 per month
2 bedroom—Ksh10,000 to Ksh30,000 per month
One bedroom and bedsitters are the most common and profitable. When starting,you should consider bedsitters first.
Cost of starting Airbnb business in Kenya
You need at least Ksh150,000 to start the business. There is the aspect of license, listing it on Airbnb, equipping the rooms with seats, bed and cooking items. You also need to install security systems and hire someone to clean the room and take care of your guests.
A bedsitter will cost Ksh150,000 to start. You need a capital of Ksh200,000 and above to start one bedroom Airbnb business.