The Airbnb business is booming in Kenya, and entrepreneurs are heavily investing in the sector due to the rising demand for short-term rentals.
Yvonne Kagondu, a Kenyan entrepreneur and co-founder of ICP Hub Kenya, a tech company, says running the accommodation business is not a walk in the park.
Yvonne, who ventured into the Airbnb business as a side hustle in 2022, says starting the business is capital-intensive.
She notes that setting up a fully furnished two-bedroom unit cost her Sh200,000 against her savings of Sh100,000.
“I started my Airbnb in August 2022. It’s a 2 bedroom in Utawala (Nairobi). Initially, I had saved Kshs 100,000. This wasn’t enough though. I had to bootstrap a lot. I got help from family, I collected old beds from relatives and repainted them a gas cyclinder, and a small fridge that I used in Uni.
I also got some house accessories like artificial flowers from my mom. The rest I bought. I also set up my Airbnb in a relative’s house, and I was able to get a discount on the first rent and deposit, which helped a lot. So my own money was KSh 100,000, but all costs would be about KSh 200,000,” she told Tuko.
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While the business has proven to be highly paying over time, Yvonne says some mistakes can make an entrepreneur go belly up.
Among the mistakes she says costed her a lot include providing too much extras to please clients.
She explained that in addition to the typical amenities, she would provide clients with cooking items such as flour, rice, sugar, coffee, diapers, sanitary towels, Vaseline, and snacks.
Sadly, her kind gesture did not translate to returning customers, but she instead ended up losing some of the items to clients.
“I also felt like I gave too much to my Airbnb at the beginning. I wanted my house to be homely, and I wanted the guests to come in and never leave. But Airbnb guests are not your relatives.
A good number are good guests. However, others are looking for an escape. I have learnt to treat it as it is: a business. Don’t put anything sentimental there; it won’t be valued,” added.
Another mistake Yvonne highlighted that is costing investors in the Airbnb sector is doing business with clients outside the booking app.
“The biggest mistake I made was probably allowing my Airbnb customers to do business off the app. When I was using the app, my Airbnb would never be empty. Some customers are bad people. They intentionally take you off the app with the intention to scam you,” She added.
She advised investors intending to enter the business to team up with other individuals already running it for insights.
