How Rogue Landlords Make Easy Millions in Kisumu
Shortage of houses in Kisumu has attracted rogue agents and dealers who are fleecing residents through inflated viewing charges.
The dealers are said to collude with some landlords who leave some of their units deliberately vacant to attract viewing charges, at times several times the monthly rent.
Wycliffe Abok, an official of a real estate firm, says some landlords in low- and middle-income areas collect up to Sh20,000 per month for units that would otherwise fetch about Sh8,000 in monthly rent.
“There is a housing shortage in Kisumu, so an unoccupied house can attract up to 10 views in a day and the agents charge between Sh1,000 and Sh2,000 per view,” explains Mr Abok.
The viewing fee is non-refundable.
Prospective tenants are either shown a house in a bad state of repair or told the units have been occupied when they are prepared to seal the deal.
Mr Abok said tenants should deal with licensed estate agents. Under the Estate Agents Registration Act, registered agents should have a certificate from the Estate Agents Registration Board. They should charge a viewing fee based on the rental value.
Bruce Odeny, a property lawyer, cautions against engaging services of informal agencies when intending to lease or buy. The rule of the thumb is to always involve a genuinely registered property advocate, he advises.
Mr Odeny says registered advocates have a professional indemnity cover and clients can sue for a compensation in case a deal goes sour. This means the advocate would conduct due diligence before committing a client’s money.
“Unfortunately people yearn for short-cuts which eventually see them lose millions of shillings to quacks,” says Mr Odeny.
Source: Business Daily Africa
How Rogue Landlords Make Easy Millions in Kisumu
