How to start a Real Estate Company In Kenya
How to start a Real Estate Company In Kenya – Real estate is undoubtedly a very lucrative sector in Kenya. Real Estate deals with the buying, selling and managing operation or investment of lands and buildings. Its a lucrative venture but its not as easy to start.
When looking to start a real estate company in Kenya, there are several factors you need to consider before deciding on the path to take. Some of those factors include the available Capital, Risk appetite, Location constraint etc.
Kenya has a very promising real estate market that is slowly progressing from the big cities to tier II and tier III cities. Opportunities are abundant for both domestic and foreign investors to start the venture.
Below we highlight what you need to start a real estate company in Kenya.
1. Define Your Niche
Real estate is a fairly broad market and before getting started you should find the niche that you would want to invest in. Perform a SWOT analysis on the market, see what your competitors are doing and find out how you would stand out from the competition. Establish the segment of people you want to sell to, You have a better chance at success if you narrow down your audience.
2. Conduct Significant Search
With the real estate market growing at a high rate, there are a lot of people looking to make a quick buck. Coming across those who sell such properties three or four times the buying price in less than a day makes it sound easy. However, it’s important to understand that a lot of research, effort and groundwork goes into such deals.
3. Take Time to Build A Team
When looking to start a real estate company in Kenya for the first time, You should spend time scouting the market for a prime property that would suit your niche market. Next you should have a lawyer who specializes in real estate and property law as property contracts can be complex and you should know what you are getting yourself into.
A contract that lists all the agreed upon terms and protects your assets and interests is a must-have before any money goes through. It’s equally important to look for a qualified lawyer in the field so as to avoid expensive mistakes in your legal issues going forward. Also make sure your lawyer has experience handling other real estate clients as experience is important.
4. Real Estate Company Registration and Branding
Come up with a unique name for your business and start the process to register a company in Kenya. A limited company is a type of business structure where the company has a legal identity of its own, separate from its owners (shareholders) and its managers (directors).
Registering a limited company has several advantages.
- You are able to run your own show. As of 2015, one can register a company as an LLC even as a sole proprietor.
- It limits personal liability as it’s a legal entity separate from its owners.
- You are able to avoid double-taxation as well as passthrough deductions
- There is ease of succession when the director passes on or wants to exit the company as it is a legal entity of its own.
- It offers a company credibility as opposed to a sole proprietorship a limited company sounds more credible even to investors as they know their money is legally protected from risks and liabilities.
Requirements to start a Real estate company in Kenya include the following
- Three preferred names of the proposed company
- Valid Travel passport / ID Card copies of all the Directors/Shareholders.
- Notarized Copy of the Parent Company Certificate of Incorporation (If Parent Company will be a shareholder in the subsidiary)
- Passport size photographs of all the Directors and Shareholders
- Postal, physical and e-mail address, Telephone number and occupation of all Shareholders/directors of the proposed company
- Share Apportionment percentage
Once the company is registered, you can go ahead and reserve your domain name, design your logo, business cards and other marketing materials to help you stand out from the crowd.
5. Come Up With A Business Plan
A business plan is a document that outlines your ideas and defines your objectives as well as provides information on how your business will achieve the goals you have set. A business plan does not have to be 100 pages long, You just need key information which we can help you with. Studies show that businesses with professional business plans are 2.5 times more likely to achieve their goals as they have their plans written down as they have a stipulated direction to follow.
6. Setup an Accounting And Bookkeeping System
It is important to keep track of your finances when starting a real estate company. You will need to set up an accounting and bookkeeping system so as to understand your business’s cash flow and also for tax filing purposes. This will help you track the monthly and annual taxes to maintain your tax compliance. Do not neglect doing this because non compliance is very expensive in the long run.
7. Plan Your Marketing Strategy
Having a successful real estate company is directly proportional to your branding and marketing strategy. This is also the time to settle on a logo, mission statements and core values. After creating a foundation for your business it’s time to create a marketing plan for your business which we will help you with as well.
8. Build a Support Network
This has been said so many times in the past that it may sound like a cliché, but its not. No man is an island”. You will need connections and networks especially since you are starting out in Real Estate. Most deals will come from the networks you cultivate, whether its from friends, business partners or competitors. Make sure you take time to cultivate and foster these key relationships.
Summary;
The Process to start a real estate company in Kenya might sound so complex, but with these tips as well as help from us, the entire process will be seamless. Make sure you do extensive research on the industry, get your finances right as well as foster meaningful networks with people in the industry and you will be on your way to having a successful Real estate business.
Incase of any queries reach out to us we will be more than willing to help you.
