How to Convert Your Home into Airbnb and Earn Extra Income in Kenya
By Benard Onyango
Benard is the CEO and founder of Marble Engineering, the leading design and build company for residential and commercial construction in Kenya.
With the rise of short-term rental platforms, many Kenyan homeowners are discovering the financial benefits of listing their properties on Airbnb. Whether you have an extra room, a guest house, or an entire apartment, turning your home into an Airbnb can provide a steady source of income. However, success requires proper planning, marketing, and compliance with local laws.
In this guide, we’ll walk you through how to list your Nairobi home on Airbnb and attract guests, legal considerations, furnishing tips, and marketing strategies to maximize your earnings.
Why Consider Airbnb in Kenya?
The short-term rental market in Kenya, particularly in Nairobi, has grown significantly over the past few years. Tourists, business travellers, and digital nomads are increasingly choosing Airbnb over hotels for affordability, privacy, and local experiences.
The appeal of Airbnb lies in its ability to offer a more authentic and personalized travel experience, allowing guests to immerse themselves in the local culture. This trend is not just confined to international visitors; domestic travellers are also increasingly opting for Airbnb stays, seeking a home-away-from-home experience. The flexibility and convenience that Airbnb offers, such as access to kitchen facilities and laundry services, are also major draws.
Some of the best Nairobi suburbs for Airbnb rentals in 2024 include Kilimani, Westlands, Kileleshwa, Lavington, and Upperhill. These areas attract a mix of international visitors and local professionals, ensuring high occupancy rates throughout the year.
These neighbourhoods are popular due to their proximity to business centres, shopping malls, restaurants, and entertainment spots. They also offer a higher sense of security and better infrastructure compared to other parts of the city.
For instance, Kilimani and Westlands are known for their vibrant nightlife and cosmopolitan atmosphere, while Lavington and Kileleshwa offer a more serene and residential environment, appealing to families and those seeking a quieter stay. Upperhill, being a major business district, attracts corporate travellers.
Read Also: Profitable Rental Property Investments in Kenya
How to List Your Nairobi Home on Airbnb and Attract Guests
Setting up an Airbnb listing is straightforward but requires strategic planning to ensure visibility and bookings. Here’s a step-by-step process:
- Create an Airbnb Account – Sign up on Airbnb, verify your identity, and register your home.
- Take High-Quality Photos – Listings with professional photos get more bookings. Showcase well-lit and clean spaces.
- Write a Compelling Description – Highlight unique features, location advantages, and amenities.
- Set Competitive Pricing – Research similar properties in your area to determine competitive rates.
- Enable Instant Bookings – This increases your chances of securing reservations quickly.
- Offer Discounts for New Guests – Promotions encourage first-time bookings and positive reviews.
Optimizing your listing is crucial. If you’re wondering how to optimize your Airbnb listing for more bookings in Nairobi, ensure that your title and description include popular search terms like “modern Airbnb in Nairobi” or “affordable stay near Westlands.”
Read Also: Trends in the Nairobi Rental Market
How Much Can You Earn from an Airbnb in Nairobi?
Your Airbnb income depends on location, property size, and occupancy rates. In prime areas like Kilimani and Westlands, occupancy rates can reach 70-90%, making Airbnb highly profitable.
Here is a breakdown of typical Airbnb rental prices in Kenya:
- Studio Apartments: KSh 3,000 – KSh 5,000 per night
- One-Bedroom Units: KSh 4,500 – KSh 7,500 per night
- Two-Bedroom Apartments: KSh 6,000 – KSh 12,000 per night
- Luxury Villas: KSh 15,000+ per night
Duration matters too, generally, short-term rentals generate higher returns than long-term leases. Understanding short-term vs. long-term rental income in Nairobi helps homeowners choose the best approach based on their financial goals. While long-term rentals provide a stable income stream, short-term rentals offer the potential for higher earnings, especially during peak tourist seasons. However, short-term rentals also require more active management and can have higher vacancy rates if not marketed effectively.
Airbnb-Friendly House Designs for Rental Success in Kenya
The design and layout of your home can significantly impact guest experience and ratings. Consider:
- Open-Plan Living Areas: Creates a spacious and welcoming atmosphere. Open-plan designs are popular as they allow for better interaction and flow within the living space.
- Minimalist and Modern Interiors: Neutral colours, stylish furniture, and high-quality finishes appeal to guests. A clean and modern aesthetic is generally preferred by guests as it creates a sense of sophistication and comfort.
- Smart Home Features: Keyless entry, high-speed WIFI, and streaming services enhance convenience. Smart home features can significantly enhance the guest experience and make your property stand out.
- Outdoor Spaces: Balconies, patios, or gardens improve guest satisfaction. Outdoor spaces provide guests with a place to relax and enjoy the surroundings, adding value to their stay.
Read Also: Affordable Flat Designs for Nairobi Investors
Legal Requirements for Running an Airbnb in Nairobi
Before listing your home on Airbnb, ensure compliance with Kenyan laws and regulations:
- Business Registration: If operating multiple units, register as a business. Operating multiple units may be considered a commercial activity, requiring formal business registration.
- County Permits: Obtain approvals from the Nairobi City County if required. Some counties may require permits for operating short-term rentals. Check with the local authorities to ensure you comply with all regulations.
- KRA Tax Compliance: Declare your income and pay applicable taxes. Income from Airbnb is taxable in Kenya. Ensure you understand your tax obligations and comply with the Kenya Revenue Authority’s requirements.
- Security and Safety Standards: Install fire extinguishers, smoke detectors, and CCTV where necessary. Ensuring the safety and security of your guests is paramount. Install necessary safety equipment and consider adding security measures like CCTV cameras.
- Lease Agreement Review: If renting, confirm that subletting is allowed under your lease agreement. If you are renting your property, check your lease agreement to ensure that subletting is permitted.
Failing to meet these requirements could result in fines or listing removal. It’s crucial to be aware of and comply with all legal requirements to avoid penalties and ensure the smooth operation of your Airbnb business.
Read Also: Why Work with a Design and Build Company in Kenya
Furnishing Tips for Profitable Airbnb Apartments in Kenya
Guests choose Airbnb for comfort and convenience, so investing in good furnishings boosts occupancy rates.
- Comfortable Beds: High-quality mattresses and fresh linen are non-negotiable. A good night’s sleep is essential for a positive guest experience. Invest in comfortable mattresses and provide fresh, clean linen.
- Fully-Equipped Kitchen: Include essentials like a kettle, microwave, and cooking utensils. Many Airbnb guests prefer to cook some of their meals. Ensure your kitchen is well-equipped with all the necessary appliances and utensils.
- Reliable WIFI and Entertainment: A fast internet connection and Smart TV enhance guest satisfaction. Reliable Wi-Fi and entertainment options are essential for keeping guests connected and entertained.
- Local Touches: African art, cultural decor, and a guidebook with Nairobi attractions create a memorable stay. Adding local touches can enhance the guest experience and make their stay more memorable. Provide a guidebook with information about local attractions, restaurants, and transportation.
Read Also: Cost-Effective House Plans in Kenya
Best Marketing Strategies for Airbnb Rentals in Kenya
With increasing competition, effective marketing is essential. Here are proven best marketing strategies for Airbnb rentals in Kenya:
- Leverage social media: Use Instagram, Facebook, and TikTok to showcase your property. Social media platforms are powerful tools for showcasing your property and reaching a wider audience. Use high-quality photos and videos to highlight the best features of your home.
- Encourage Reviews: Positive guest reviews improve visibility and credibility. Reviews are crucial for building trust and attracting new guests. Encourage your guests to leave a review after their stay.
- List on Multiple Platforms: Besides Airbnb, try Booking.com, Expedia, or direct rental websites. Listing your property on multiple platforms can increase its visibility and attract more bookings.
- Offer Discounts for Extended Stays: Long-term guests provide stable income. Offering discounts for longer stays can help reduce vacancy rates and provide a more stable income stream.
- Invest in SEO: Optimize your listing title and description with high-ranking keywords. Search engine optimization can help your listing rank higher in search results, making it more visible to potential guests.
Final Thoughts
With proper planning, an Airbnb business can be highly lucrative for Kenyan homeowners. From choosing the best Nairobi suburbs for Airbnb rentals in 2024 to optimizing your listing and furnishing your space, every detail matters.
If you’re ready to turn your home into a profitable short-term rental, Marble Engineering can help you create Airbnb-friendly house designs for rental success in Kenya. Contact us today for expert guidance on home renovations and smart rental investments.