How Covid-19 Has Affected Landlords in Kenya
Coronavirus pandemic has shaken the glory of the term landlords significantly. The term which symbolizes might and great ability has faded in the past year as covid-19 heat, hit the real estate industry among many other businesses.
With lessons from the last year's lockdown Kenyans sort to move upcountry at the beacon of this year's lockdown announcement. Many termed it as an escape from the city's heat due to the high cost of living. Seeing that most people could not afford meals how about rent?
The third wave came at a time where most people were trying to get back on their feet in re-opening businesses and re-employing workers in companies. As the statistics proved an increased rate of infections, more landlords mourned. With an instability state in 2020 of reduced rental charges, high vacancy rates, and not forgetting loans at the back of some of the landlords, their lands seem to be lording them.
More than 50% of rental house investments are built on loan with an aim of clearance with the occupation of tenants. However, most banks have rescheduled loan payments for them due to the pandemic state.
Rental high rate occupants are students, young nuclear families, middle-aged professionals, with the highest percentage being in the metropolitan area. Rental houses for businesses have also felt the heat with the loss of customers in the sector.
However, with the flattening curve, a ray of light shines on them as schools and other business operations will start running as normal. The question however appears will they come back after Covid-19 pay up the rising rates of loan settlement?