Undoubtedly, the Air Bed and Breakfast (AirBnB) business holds significant profit potential for investors who are ready to rent their extra bedrooms or idle units.
In Kenya, many entrepreneurs have heavily invested in Bed Only Accommodation (BOA) as they do not provide breakfast to their clients. Only a few have started providing breakfast to their clients to stand out given the high competition.
So booming is the business given the vibrant tourism scenes in Kenya, offering entrepreneurs a promising return. A large number of BOA hosts in Kenya rent an apartment, furnish it, and then give it out to tourists for short stays.
This is the case with Stella Kasyoka, a Business and Administration Manager. The bold businesswoman has listed a property in the South B area in Nairobi.
Kasyoka revealed she started the business in October 2021 as a part-time job, a journey that has so far been good. She explains that her business took three months to break even crediting this to intense marketing.
According to her, intense marketing is the only secret to thriving in the accommodation business. She markets her units through word of mouth, Facebook, Airbnb apps, and WhatsApp.
Kasyoka owns several units that go at between Sh2,000 to Sh5,000 per night depending on the size. There are studios, one bedroom, and 2bedroom, depending on the customer’s needs.
Most profitable areas for BOA business in Kenya
She notes that the homestay business service is pretty straightforward to start all one needs is to look for a prime area that is business-oriented, a room with the basic amenities needed, and highly invest in marketing.
”Have a budget,  furnish the unit, take professional photos, and market the unit on Facebook, Airbnb apps, WhatsApp, etc.’’ she explained.
According to her, the cost of starting the homestay business service varies depending on the size of the unit, location, and amenities provided.
She notes that for a studio unit, one needs a seed capital of about Sh250,000, and Sh350,000 and Sh450,000 for 1-bedroom and 2-bedroom units respectively.
”The monthly income ranges between Sh50,000-55,000 for a studio unit, 1 bedroom Sh70,000-to Sh75,000 and 2 bedroom Sh100,000 to Sh120,000,’’ she explained.
Like any business, the accommodation business has a fair share of its challenges. Kasyoka says the major challenge hosts encounter is unruly guest behavior.
”Some guests damage property, steal items, cause disturbance, check out without paying, and extend check out time without notice,’’ she added.
Some other hosts have complained of guests using resources carelessly, eating away the profit margins.
Many travelers and revellers prefer these facilities as they provide more benefits compared to hotel rooms.
The units are more of a home away from home as they are fully furnished. One can make a meal, throw a party with friends, work, and relax, unlike a hotel where you just get to access a TV and are limited to a certain number of people per room.
