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Rent To Own – What is it?

In recent years many individuals have been financially strained due to the global pandemic and the subsequent rise in the cost of living.

Thanks to Rama Homes and their carefully constructed payment options many Kenyans have had the opportunity to invest into the real estate market. Rama Homes offers some of the lowest entry points of real estate investment at 10%!

You may have come across several real estate developments that offer rent to own payment options. 

Have you stopped to wonder what it actually means? What is rent to own?

Well to put it simply, you pay towards owning the home you live in. So your rent goes towards the cost of the apartment. 

Let us take a closer look at the entire rent to own process. 

There are several real estate developers in Kenya that offer rent to own properties. However, one of the more prominent ones is Rama Homes Limited. They have extensive experience in developing residential properties in prime locations in Nairobi with an occupancy rate of 98%. 

The Rama Homes Catalog

Syokimau – Gateway Park [3 bedroom apartments]

South C – Rama Heights [3 & 4 bedroom apartments]

South C – Euromax Heights [3 bedroom apartments fully occupied]

Parklands – Marina Heights [Studio,1,2 & 4 bedroom apartments]

Parklands – Jumeirah Heights [3 & 4 bedroom apartments]

The rent to own payment option is not as common as you would think. In fact not many developers in Nairobi offer it as a viable way for you to own a home. 


During 2019 the Kenyan economy was hit rather hard with the effects of Covid-19. Businesses were in the red and many people lost their jobs resulting in less money to invest into real estate. 

Don’t get me wrong, there were still people investing but not as many as before 2019. 

What has helped Kenyans to invest into their dream homes is Rama Homes’ flexible payment option–which includes rent to own. 

How does rent to own work at Rama Homes?

The first step in the process is to decide which apartment you are interested in. As I mentioned previously we have several options to choose from. Allow me to assume that you’ve decided that Gateway Park is the ideal place for you and your family. 

The total value of a 3 bedroom apartment at Gateway Park is currently KSh 8,500,000 with a 4 year payment plan. 

Deposit -> 10% ( KSh 850,000)

First  Monthly Installments -> 47% during the first 2 years.

 Second Monthly Installments -> 43% after the first 2 years. 

The rent to own aspect of this payment plan comes in after the two year construction period. Once either you or the tenant may occupy the apartment you can then begin making monthly payments (rent) towards owning the apartment. 

No it’s not a mortgage.

Besides, the rent to own payment plan differs from a standard mortgage in one major way. ZERO percent interest.

 

This allows for better financial stability because you aren’t charged interest. 

The rent to own payment plan is different for the off-plan apartments compared to the completed apartments. The major difference is the initial deposit ranging from 57-60% because the apartment is already complete. 

The great thing though is that once someone occupies the apartment. They can begin making payments towards owning the apartment. 

It is important to remember that Rama Homes offers various payment options (mortgage, cash buyer, rent to own and to let).