Property Guide
Common words used by Kenyan landlords, agents, valuers, developers, banks and property lawyers—explained for everyday users.
These explanations help you understand property conversations. They do not replace legal, valuation, tax, survey or financial advice on a specific transaction.
The price the seller or landlord is advertising.
It is the advertised price, not necessarily the final price agreed in a sale or lease and not automatically the same as a professional valuation.
Use it as a starting point. Compare similar properties and complete due diligence before deciding what the property is worth to you.
An estimate of what a property may reasonably exchange for in the market.
A market valuation considers evidence such as location, size, condition, comparable property transactions and other relevant characteristics.
A seller's asking price can be above or below market value. A lender or professional valuer may arrive at a different figure.
Rent earned compared with the property's purchase price.
Gross rental yield is normally annual rent divided by the property price. Net yield also deducts relevant ownership costs.
Service charge, vacancies, maintenance, taxes and financing costs can reduce the real return.
An increase in the value of a property over time.
If a property becomes more valuable over several years, the increase is capital appreciation. It is different from rental income.
Property can generate both income and long-term value growth, but neither is guaranteed.
Ownership of land without a fixed lease term, subject to Kenyan law.
Freehold generally means the registered interest is not limited to a specific number of remaining years in the way a leasehold interest is.
The nature of the title affects ownership rights, due diligence and sometimes financing or redevelopment decisions.
A right to hold and use property for a defined lease period.
Leasehold title has a term. Buyers should check how many years remain and whether obligations such as land rent apply.
The remaining lease term can affect value, financing, renewal considerations and resale.
A formal check of registered property records.
A search helps confirm registered ownership and can reveal registered interests or restrictions affecting the property.
It is a core part of property due diligence before committing substantial money.
A registered or legal interest that may affect a property.
Examples can include a charge in favour of a lender or other restrictions recorded against the title.
An encumbrance can affect whether and how a property can be transferred.
Security registered over property, commonly for a loan.
A lender may register a charge over a property as security for money advanced to the owner.
A charged property normally requires the lender's involvement before a clean transfer can be completed.
Separate ownership of an individual unit in a development.
In apartment and similar developments, sectional ownership allows individual units to have their own title interests together with rights in common property.
Buyers should understand both the individual unit and their obligations relating to shared/common areas.
Money collected for shared services and common-area costs.
It can cover items such as security, cleaning, lifts, landscaping, common electricity, garbage and shared maintenance.
It affects the real monthly cost of occupying or owning a unit.
Money held as security during a tenancy.
A landlord or manager may hold a deposit subject to the tenancy agreement, including agreed treatment of damage or other obligations.
Tenants should understand the amount, purpose, deductions allowed by the agreement and handover process.
An additional room or quarters separate from the main sleeping rooms.
The term is common in Kenyan property listings. Depending on the property, the space may be used for staff, guests, storage or a home office.
A DSQ can add useful space, but its size, access, bathroom facilities and approved use may differ.
The built-up floor area of a building.
It is a measure of the physical built area and is one of the factors often used when comparing homes.
Two homes with the same bedroom count can feel very different if their built areas are different.
Buying property before construction is complete.
The buyer commits based on plans, specifications, contracts and the developer's delivery programme rather than a completed unit.
Assess the developer, approvals, contract, payment milestones, completion risk and what happens if delivery changes.
A period when a rental property has no paying tenant.
Even a desirable rental can be vacant between tenancies or during market slowdowns.
Investment calculations should not automatically assume twelve months of rent every year.
The proportion of time or units that are occupied.
For a rental portfolio, occupancy gives an indication of how much of the available space is actually occupied.
High theoretical yield is less useful if a property is frequently vacant.
How quickly available property is being taken up.
Market reports may use uptake to describe sales or leasing absorption during a period.
The exact definition can vary by report, so always check the methodology.
Land value divided by the number of acres.
It is a useful way to compare larger land parcels, but different plots can still have very different values.
Road access, title, services, frontage, zoning, topography and development potential can materially affect price.
Extra value associated with direct or superior beach frontage.
Coastal property can command a premium for direct beach access, views, beach quality and scarcity.
Not every coastal plot has the same frontage, access, erosion risk, title clarity or development potential.
