It is not everyday that one hears of a family converting their family home into a business premise; but once the children have struck out on their own, it might be something to look into, writes PETER MUIRURI
It is the dream of most urban dwellers to have a place they can call home. However, owning a family home is still out of reach for many city residents mainly due to high housing prices that have been made worse by escalating costs of land and building materials.
But in a new trend that is fast emerging in Nairobi’s affluent suburbs, a number of city residents who have been lucky enough to own homes are moving out of their residential houses and turning them into business premises.
Rather than suffer the empty nest syndrome, many have opted to turn their formerly lavish homes into guesthouses or boutique hotels as a means of creating sustainable source of income in their sunset years.
For instance, Jerry Ndong’ and his wife Hellen, currently operate the Cold Springs Karen Boutique Hotel that had previously served as their family home.
Ndong’, a former chairman of the Architectural Association of Kenya, had constructed the house, completed in 2005, with the idea of turning it into a boutique hotel once their children leave home in mind. Currently, their three grown-up children are either studying or working abroad.
When the couple visited New Zealand recently, they were accommodated in a former residential house and given personalised attention by the proprietors, something that awakened their desire to create a similar establishment back home.
“Although we firmed the idea in 2010 after visiting New Zealand, we already had this idea when we set out to construct our house. I think it is a wise use of space that would otherwise be underutilised once the family size shrinks,” says Jerry.
The Ndong’s decided to move into a four-bedroom town house in Lavington that fit their current needs as they embarked on renovating their Karen mansion to fit their new venture.
After the renovations that ended in November last year, they ended up with a nine-bedroom boutique hotel that has already been given a Five-Star certification. The hotel has been in operation for the last three months.
Each room is furnished differently, depending on the desired theme. The former master bedroom, complete with a Jacuzzi and a mini gym, can pass for a presidential suite in any of the city’s leading hotels. The same goes for adjacent en suite rooms that used to house the couple’s three children.
Earth tone colours and a waterfall combine to give the former sitting room, now a lounge, a tranquil feel. A mini bar at the corner of the former family dining room completes the picture of what seems to be a well thought out plan.
Cost
“We spent about Sh15 million to make the adjustments needed to turn our family house into a modern business premise. Giving the house a personal touch makes us feel as if we still live here though in actual fact we do not. We just love that personal interaction with our visitors. On the other hand, they also feel secure and consider themselves part of our family,” says Jerry.
The couple capitalised on the fact that Karen lacks such facilities that can accommodate persons who require the solitude that a home offers. They witnessed this scenario firsthand during the just concluded 2013 Kenya Open Golf Tournament at the Karen Country Club that had participants from all over the world.
“It was sad to see many players, caddies and other participants being accommodated as far away as Westlands. Though we were fully booked then, we wish there were similar establishments in the vicinity offering such high-end accommodation,” he says.
Jerry advises couples whose children no longer live at home to consider turning their huge houses into economically viable ventures. Citing their own case, he says it made no sense living in such a huge house and incurring huge utility bills every month when the house could generate them income.
“Business was a bit depressed during the electioneering period but we hope things will improve soon,” says Ndong’.
“There was no point in the two of us keeping six domestic workers. The house had to be cleaned on a regular basis though it was virtually empty. However, the current set up has made it possible for us to create employment for a few more Kenyans,” relates Jerry.
Though conservative with figures, Jerry says the efforts are slowly paying off with 60 per cent occupancy at any given time. Bed and breakfast in a superior deluxe room will cost you Sh15,600 while full board in a triple deluxe will cost one Sh36,880.
According to Collins Kowuor, the chairman of the Institution of Surveyors of Kenya, such a model makes more economic sense since one does not have to erect new structures for the business.
“It makes sense to use an existing asset to earn revenue rather than start from scratch. If the structure is sound, then there is little in the way of renovations apart from a few internal adjustments to suit the new operations,” says Kowuor.
The concept of boutique hotels is popular in European and American cities where more and more individuals on holiday are opting for a location that offers exclusivity. Some of these are Royal Park and The Cranley Hotel in London as well as Duane Street and Lowell Hotel in New York.
The architecture is personalised to cater for an elite clientele that may include celebrities who require some quiet vacations away from prying eyes. They focus more on guest comfort than in gadgetry so common in major hotel chains.
On the other hand, there have been cases where people either rent out their unutilised rooms or turn an entire house into a guesthouse, either on a fulltime or part time basis.
Cecilia Wahinya of Triad Architects says any alterations to an existing building will largely depend on the kind of business to be carried out in the structure as well as municipal zoning regulations.
Changes
Some businesses, she says, may require little structural changes while others may call for massive refurbishment of the building.
“The first thing the owner should do is conduct a thorough feasibility study of the building in line with the intended new use. In Kenya, the law requires one to change the status of a property either from residential to commercial before an operating licence can be issued. This is after satisfying the local authorities that the new concept design will be supported by current infrastructure,” says Cecilia.
However, there may be times when the intended change of use requires much more works on the existing property. For instance, turning a residential home into an office may mean either knocking down some walls or creating others.
At the same time, turning a residential house into an office means many more persons sharing the facilities that were only meant for a few family members. In the same vein, the entire electrical system may have to be upgraded to factor in computer and Internet connections.
These works can be so detailed as to require the redesigning of the entire property with contractors being invited to bid for the works.
Alterations
“At times this may require laying out additional sewer system or parking enlargement to suit the office set up. In addition, former bedrooms may have to be redone by removing wardrobes that may not be compatible with an office environment. Depending on their extent, some of the physical works require authorisation from regulatory bodies such as National Environment Management Authority (Nema) as their impact on neighbours and the environment cannot be ignored,” says Cecilia.
In Nairobi, areas like Kilimani, Kileleshwa, Lavington, Westlands and some parts of Ngong’ Road have seen many stand alone residential buildings converting into business premises.
Such buildings have become popular for NGOs and law firms that require a serene and homely environment.
It is, however, important to remember that the law requires one to change the user of a property, say, from residential to commercial before an operating license can be issued. Zoning regulations also come into play.