Business Rent:An Impediment to Enterpreneurship?

For every entrepreneur who is isn’t deep pocketed enough to own a business premises,the issue of rent is a thorny one because in most cases it determines whether your business will stay afloat or go under.I have observed several start ups choking under this complex web,yaani mmeelewana rent ni 40k pm,biz imeanza kushika mdogo mdogo then after a lets say 10-12 months down the line landlord anaamua kupandisha hadi 50k citing tough economic times.Is there a law against such a practice juu sana sana mi uona the increase is just based on jealousy,the thought of seeing another young nigga succeeding.

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Nairobi Garage. Watu waanzie huko

kwani hakuna agreement ume sign ?

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Future rent increase should be in your lease terms.

This month an uncle of mine closed business due to unsustainability brought about by sudden increase in rent from 80k to 100k.En to make matters worse the new buyers of the business would have to part with 20k more bringing total cost of rent per month to 120k.Some gready mafuckers called landlords cannot let u prosper

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vile @Ice_Cube amesema, a lease agreement is the way to go, stop entering into contractual agreements based on word of mouth, you cant get any legal redress incase the terms are broken by either party. in the event that for any justifiable reasons the original terms change and both parties are in agreement, also make sure to add an addendum to the agreement and resign. always make sure you cover all angles

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the “greedy MoFo” is hoping to max on his investment and is working with market forces…

Kenyans always have a way of spoiling good things. Ilianza na goodwill. I guess no one saw the rate at which hii goodwill itakuwa tu a scheme to rip off innocent businesspeople. Skuizi unaulizwa ulipe vitu fchingafichinga sana.

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hii mambo ya goodwill sijawahi elewa, unakuta even a new stall bado wanataka goodwill, alafu goodwill si inafaa ipewe the outgoing tenant ama? cz you will most likely ride on his reputation

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goodwill is one of the most abused costs, its only applicable when you are buying an existing business or trying to ride on an existing brand name for your business, saa zingine wakenya huwa wanaibiwa virahisi sana

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I thought there’s a Rent Tribunal for such disputes? But yeah, I get your point. Kwanza this nonsense of 500k goodwill for a new building, aaiih!!:frowning:

The building is not new tho so hii mambo ya rushing to make a return on investment is out of question. Market forces? I might partly agree, but it does not dictate you increase rent by insane amount.

Hizo stall za moi avenue huwa za kukamua wasee and you would have to really struggle to recover your cash. Unapata mtu amechukua loan kuanzisha business and after enquiries ana ambiwa simu ndio ‘zinabakisha’. A guy pays goodwill, increased rent, stocks up with phones like everyone else on the street, gets a yellow yellow to sit there and smile and attract customers and six months later goes bust and vacates.
The next idiot comes along, pays say 20% more goodwill and rent na saa hii ameambiwa viatu ndio ‘zinabakisha’. Gets a yellow yellow to smile and attract customers and six months later…

So here you can see the only beneficiary is the stall owner and the yellow yellow

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True that. Goodwill is the abused business practise in Kenya. Premises ni mpya na bado unaitishwa goodwill…

Nakumbuka last year niliuliza a stall hapo tom mboya street nikaambiwa goodwill 750k

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i almost became that idiot

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:eek::eek::eek:

Bado hujaweka stock, na rent ni 40k, nilijaribu ku project returns lakini hesabu haikuwa ina ingiliana

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Stalls za Goodwill inatakanga mtu ako na biashara zingine kathaa so that you are not dependent on the new project.This way you let the new biz to become stable and with time you start to reap the benefits.Shida inakuanga you put all your savings and even borrow to start the biz therefore you dont even give the biz time to stabilize before you start drawing out money from it.Hiyo ni recipe for failure.Business requires patience and consistency and most often than not its successful.

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Kuna jamaa i know alipata ka room ka biz kamechapa akairent akajijenga landlord kuona hivyo aka muongezea rent luckily lease ilimsaidia akavumilia so its very important kujipanga kirent