How a 28-year-old achieved financial freedom as an Airbnb host in Nairobi

Homestays like Airbnb have disrupted the hospitality sector in ways that major hotel chains did not expect. The flexibility and freedom in a home-away-from-home kind of setup have seen some frequent travelers ditch traditional hotels.

There is also the cost factor, as most consider homestay rentals cheaper than hotels. While there’s growing concern that (as a business) the Airbnb/Homestays market is flooded, some proprietors have been able to earn a decent living.

Businessempires.Africa sat down with Laura Chricencia, 28-year-old Airbnb businesswoman in Nairobi, Kenya to talk about her Airbnb business. She pointed out challenges and issues that people who are thinking of entering the business might find insightful.

What pointed you into this business?

Back in March 2021, I hosted my friends from abroad for almost two weeks in my house in Westlands, Nairobi, Kenya. They didn’t want to book a hotel as they felt they wanted to prepare their own meals and just enjoy living like a Kenyan.

At first, I didn’t think they were going to pay me, because I hadn’t asked for payment. But when they left they paid me around KES 7,000 ($60) per night. (They had stayed for almost two weeks!) That was quite a lot of money, not even close to what I was paying for rent back then.

After this, I started looking into it. If for about two weeks I got almost double the rent, isn’t this a business worth pursuing? That’s when I started researching more on this business and actualized it in September 2021.

How much did you use as capital to set up?

When starting, I actually didn’t use a lot of money for the house because it was initially my own house. Since it had two bedrooms and a detached servant quarters and I was staying alone, I used the main two-bed house as the Airbnb.

I however spent around KES 200,000 ($1500) on decors and a little furniture upgrade to make it look homely. Also, the cost included hiring a photographer to take pictures of the rooms and get registered on the Airbnb website.

My portfolio went up in September 2021 but my first customers came around December, of the same year.

How much do you make in a month from this business?

What I earn in a month range with seasons. There are months when the house is fully booked while there are months when it can go days without bookings.

In the beginning, I charged about KES 5000 ($39) per night but currently, the charges range from KES 7,500 – KES 12,000 ($58 – $117) per night.

It all depends on the season of the year. Sometimes, the demand is such that I have to also give up my side of the house in cases where the guests need all three bedrooms.

Averagely, my monthly earnings range from KES 120,000 – KES 300,000 ($936 – $2340). I think it’s important to add that Airbnb (website) charges a brokerage commission of about 3% of the total paid by the guest, though I do get quite several clients outside the Airbnb platform.

With the biggest cost on the Airbnb business being a monthly rent of KES 110,000 ($858), I basically make money from the apartment while still pursuing my online gigs.

Why this industry?

I think I like interacting with new people and the concept of getting side money from these people was such a thrill for me.

Also, I liked my house and didn’t want to move. The fact that I would have paying guests coming over from time to time when I still maintain the lease was enough motivation for venturing into Airbnb business.

What drives you to keep going?

The satisfaction of seeing guests enjoy their stay and the positive impact on their travel experiences is immensely rewarding.

Additionally, the continuous learning and innovation required to stay competitive keep me engaged and motivated.

What are the major challenges you’ve had to deal with?

Dealing with difficult guests or unforeseen problems like property damage requires patience and effective problem-solving skills.

Personally, I have established house rules, proper communication, and having insurance policies have been key strategies in mitigating these issues

Secondly, the short-term rental industry faces constant scrutiny and regulatory changes. Navigating these regulations and ensuring compliance can be challenging. I handle this by staying informed through industry associations and legal advisors.

What sets you apart?

With the rise of Airbnb, the market has become saturated with listings. To stand out, I focus on providing unique, high-quality experiences, and maintaining excellent reviews through exceptional customer service.

I also create personalized experiences for guests, offering local insights, and unique amenities that make their stay special. Ensuring high standards of cleanliness, comfort, and customer service has helped build a strong reputation and repeat business.

Offering unique properties, such as themed homes, attracts niche markets and differentiates my listings from standard options. I also offer fast Wi-Fi services, 24hr security, and complete home office.

Additionally, I go the extra mile on my guidebook to offer guests with activities they can do within the city. It somehow makes guests look forward to staying here because they are now assured of what they’d do.

Simply, what sets me apart is making my guests feel like they are getting value for their money in the little ways possible.

What is the typical work day of an Airbnb owner?

Besides the Airbnb business, I work on various freelance online jobs that take most of my time. On the Airbnb front, however, my day involves reviewing new bookings, responding to guest inquiries, and updating availability.

Occasionally, I conduct a check-in with the property management team to address any maintenance or operational issues.

Then at the end of the day, I analyze booking trends and adjust pricing strategies. This also involves reviewing guest feedback, address any concerns, and prepare for upcoming check-ins and check-outs.

What does the future look like for your business?

I plan to expand my portfolio by leasing and furnishing more properties in diverse locations in the city to cater to a broader audience.

I also plan to invest in eco-friendly practices and properties to appeal to environmentally conscious travelers and reduce the carbon footprint.

Therefore, in 5 years, I envision my business being a leading provider of unique and memorable travel experiences.

If you were to start all over again, what would you do differently?

I would invest more in property quality and unique features from the start to attract higher-paying guests.

I would also market my business on social media platforms from the word go. I am not a social media person so in the beginning, most of my customers were from close friends and recommendations.

What advice would you give someone who wants to venture into this business?

For the Airbnb business, location is everything. It doesn’t matter what you are offering. Is it accessible? Ensure your location is easily accessible to people from the main roads and relevant attractions or amenities that travelers looking at your area will prefer. I am lucky to be located at an area where lots of expatriates stay.

Thoroughly research the market, understand the regulations, and prepare a detailed business plan before diving in. Prioritize customer satisfaction and build strong relationships with guests to encourage repeat business and positive reviews.

Also, keep your books straight. Account for every coin you use in the business. Track the records to know the profits and losses.

Additionally, network with fellow hosts in the business to expand possibilities of referrals whenever they are overbooked and vise versa.

Lastly, do not let a good season trick you into redecorating or opening new apartments too fast. Don’t rush this business. Give it time and you will finally get the grip of it.