Starting A Real Estate Company In Kenya
To start a real estate company in Kenya, you must clearly understand the industry. The Kenyan government welcomes anyone aged 18 and above to start a real estate company in Kenya. As we will show, you must be registered after being vetted and approved. The real estate business is very profitable because land grows in value daily. The demand for land is also always high. Starting a real estate company in Kenya, therefore, is worth it.
Although land appreciates daily, having a real estate business plan to maximize profits is important. Researching in the field is where you begin when you wish to start a real estate business in Kenya. There are other important steps you should take that we will show you. We will first have to know how to start a real estate career before looking at how to start a real estate company.
Starting A Real Estate Career In Kenya
Starting a real estate in Kenya is simple. You have to ensure you meet the following requirements:
- Be of legal age: To practice a real estate career in Kenya, you must be 18 or above.
- Register with the estates’ agents’ registration board: The real estate regulatory board is set up to control realtor activities. It ensures that all realtors in Kenya carry out their duty by the law.
- Certification to practice real estate. This is different from one employer to the next. It is, however, not a mandatory requirement but only an added advantage. Employers that ask for certification accept a degree and diploma in real estate.
- Real estate job experience: This is important but not mandatory. Some employers will ask for this when hiring for a real estate career in Kenya. There are, however, employers that will interview you to determine whether you are fit for the job and whether you have job experience or not.
How To Start A Real Estate Company In Kenya
1. Conduct thorough research on real estate business in Kenya
Research on the real estate industry is mandatory before starting a real estate company in Kenya. You should gather the necessary knowledge on the real estate business knowledge. This is not book knowledge but real-time knowledge on:
- What is needed to start a real estate company in Kenya?
- How much capital is needed to start a real estate company in Kenya?
- What are the legal requirements for starting a real estate company in Kenya?
- What are the types of real estate companies in Kenya?
- How much labour force do you need to start a real estate company in Kenya?
- How can you run a real estate company successfully in Kenya?
These are just some of the questions you should find answers to when researching to start a real estate company in Kenya. The research is wide; the best way to learn about this is by observing firsthand how a real estate company operates. Those who’ve worked in real estate companies will have to research managing a real estate company. Without job experience, we would advise you to apply for an internship. When interning, note down everything and ask where you don’t quite understand. A thorough research prevents future mistakes when you start your own company.
2. Decide on the type of real estate company to specialize in
Different types of real estate companies serve purposes. From the research you conducted, you have to understand what each type entails. You should have also discovered the type of real estate company you can run effectively. The following are the types of real estate companies in Kenya:
- Real Estate Investment Company: Buying property and then selling at a profit.
- Real Estate Development Company: Taking worn-out properties, repairing them, and selling them at a profit.
- Real Estate Holding Company: Buying property and earning profit by selling or leasing them out.
3. Gather Capital
You already know what the real estate business entails and have settled on the type of real estate company you want to open. The only thing remaining is gathering the adequate capital required to start a real estate company in Kenya. The amount of capital you need depends on the following:
- The scale of the real estate company.
- The location of the real estate company.
- Your business structure.
4. Make a budget plan
With the capital, construct a budget to know whether you have enough money to start a real estate company. List all the mandatory requirements first in your budget plan. If the capital you have acquired is enough to satisfy this, then you are sure you can handle starting a real estate company. If there is a balance, you can leave it for unknown future circumstances or add some things that you feel are important to a real estate company.
5. Create a brand and logo
Choose the best title for your real estate company and a logo. The name of a real estate company should not be personal. It should represent what the company is about. You should pick a name that describes the type of real estate company you are running. Apart from that, you can also choose a name for your real estate company considering the following factors:
- The location of the company.
- The company’s goal.
6. Clear with the government
With a name and logo for your real estate company, the remaining and final step is to clear with the government by registering your company. To register your company, you have to be approved by the estates’ agents’ registration board (EAGB). After getting approved, you will apply for registration of your real estate company and a license to start operating officially. The chances of not being approved after EAGB approval are very minimal.
FAQs
Yes. The real estate business is highly profitable in Kenya with the right plan and following through. Apart from that, real estate is still profitable because lands are always in demand in Kenya. Lands also consistently appreciate every year.
Real estate agents earn a commission of 5% to 10% of the property’s total price. The higher the value of the house, the more they earn. Real estate earnings depend on the company. Different real estate companies in Kenya have different commissions for their agents.
1. Research thoroughly the Kenyan real estate industry.
2. Use modern marketing means to get clients, for instance, social media platforms.
3. Motivate your workers to increase input.
4. Re-invest profits back into the business so that it may grow.
5. Treat your clients to get good reviews.
Apply for a loan from your bank of choice. They only need collateral and a good reason to approve you for the loan. Real estate is a good enough reason to be approved for a loan. The land is usually the best collateral that assures loan approval in any bank.