Property Management FAQ

Property management involves overseeing and operating real estate properties on behalf of owners. This includes tenant relations, rent collection, property maintenance, financial reporting, and ensuring compliance with rental laws. Property managers act as intermediaries between landlords and tenants, handling day-to-day operations so landlords don't have to.

You need a property manager if:

• You own multiple properties and don't have time to manage them
• You live far from your rental property
• You prefer a passive investment approach
• You lack expertise in tenant screening, maintenance, or legal matters
• You want to maximize your rental income through professional management

If you have 1-2 properties nearby and enjoy managing them, you might handle it yourself with the help of property management software.

Property management fees in Kenya typically range from 8-15% of monthly rent. Additional fees may include:

• Setup fee: KES 5,000-20,000 (one-time)
• Leasing fee: 50-100% of first month's rent when finding new tenants
• Maintenance markup: 10-20% on repair costs

Always clarify what's included in the management fee before signing a contract.

Automated M-Pesa rent collection integrates with Safaricom's payment system. When tenants send rent via M-Pesa to your business number:

1. The payment is automatically received and recorded
2. The system matches it to the correct tenant using phone number, amount, or reference
3. An instant SMS receipt is automatically sent to the tenant
4. Your dashboard updates in real-time showing the payment
5. Arrears are automatically recalculated

This eliminates manual matching and receipt generation, saving hours of work.

Most property management systems have an "unmatched payments" section where you can manually match payments to tenants. Common reasons for unmatched payments include:

• Tenant used a different phone number
• Payment reference doesn't match tenant records
• Partial payment or extra amount paid
• Payment from someone else (family member, etc.)

Good systems allow you to match these manually with just a few clicks.

Yes! Property management software like Blocks PMS can automatically send SMS receipts to all tenants who paid via M-Pesa. You can also send bulk SMS reminders before rent is due, arrears notices, and other important communications. This saves significant time compared to sending individual WhatsApp messages or printing receipts.

Effective tenant screening includes:

• Employment verification: Confirm current employment and income stability
• Previous landlord references: Contact at least one previous landlord
• Identity verification: Copy of ID and recent photo
• Credit check: Check credit history if possible (though this is limited in Kenya)
• Interview: Meet potential tenants to assess compatibility

Property management software can help store and organize all this information digitally.

Handling arrears effectively requires:

• Early detection: Track rent due dates and send reminders 3 days before due date
• Clear communication: Contact tenant immediately when rent is late
• Payment plan options: Offer reasonable payment plans if tenant faces temporary hardship
• Documentation: Keep records of all communications and agreements
• Legal action: Follow proper legal procedures if tenant refuses to pay

Property management software automatically tracks arrears and can send automated reminders, making this much easier.

Property management software is recommended if you:

• Manage 5+ properties or 10+ tenants
• Spend more than 5 hours per month on administrative tasks
• Receive most payments via M-Pesa (automated matching saves huge time)
• Want to generate professional landlord reports easily
• Need to track arrears systematically

If you have 1-2 properties and enjoy managing them manually, you might not need software yet. But as you scale, software becomes essential.

Property management software in Kenya typically costs:

• Basic plans: KES 2,000-5,000/month (5-20 properties)
• Professional plans: KES 5,000-10,000/month (20-50 properties)
• Enterprise plans: KES 10,000+/month (50+ properties)

Most providers offer free trials (typically 30-60 days). Consider that if software saves you 10 hours per month, and your time is worth KES 500/hour, that's KES 5,000/month in value - often more than the software cost.

Essential features for Kenya market:

• M-Pesa integration: Automatic payment matching
• Bulk SMS: Send receipts and reminders
• Tenant management: Digital tenant database
• Arrears tracking: Real-time tracking of overdue rent
• Reporting: Landlord reports and financial summaries
• Mobile-friendly: Works well on smartphones
• KES currency: Proper Kenyan Shilling handling

Nice-to-have features: expense tracking, maintenance management, document storage, landlord portals.

Setup time varies but typically:

• Initial account creation: 10-15 minutes
• Data entry: 2-4 hours for 10-20 properties/tenants
• M-Pesa integration: 1-2 days (provider handles this)
• Training: 2-3 hours to learn the system
• Full adoption: 2-4 weeks to be fully comfortable

Most providers offer setup assistance and training to make the process smooth.

A tenancy agreement should include:

• Names and contact information of landlord and tenant
• Property address and description
• Monthly rent amount and payment date
• Security deposit amount and terms
• Length of tenancy (fixed term or periodic)
• Maintenance responsibilities
• Notice periods for termination
• Rules and regulations (if any)
• Signatures and date

Always have agreements in writing and consider consulting a lawyer for complex situations.

While Kenya doesn't have strict rent control laws, best practice is to give at least 3 months' notice for rent increases. This should be done in writing and should be reasonable. Tenants have the right to negotiate or give notice to vacate if they disagree with the increase.