New money: Turning your home into a business centre

Feb 14, 2015

Ronald Mugole built his residential storeyed house on a 50 x 100ft piece of land. But upon completion, he realised it was too big for his family of five.

By Stella Naigino

Ronald Mugole built his residential storeyed house on a 50 x 100ft piece of land. But upon completion, he realised it was too big for his family of five.

Mugole and his wife came up with a plan of making money out of their home by occupying the upper part of the house and renting out the lower one.

Luckily, they got tenants and they earn sh800,000 per month from rent.

“This money has helped us to buy another piece of land. We plan to build on it another house and rent out the one we currently live in,”Mugole explains.

Mugole is not alone. Alice Twina, a resident of Mukono, is also minting cash from her house, which seats on an acre of land.

After building the house, she was left with a lot of space for the compound. Since Twina had retired from her teaching job, she thought about starting a business at home. After discussing with her family, she decided to hire out her compound for functions during weekends.

Today, Twina does not regret her decision. She started out by charging sh300,000 per function, but because of the increase in clientele, she now charges sh800,000.

She also hires out chairs to people who rent the venue for functions.



The compound design depends on your business plan

Challenges in the business

Mugole says it comes with a lot of challenges.

‘‘The expenses are high. Starting from the change of building plan, if you are to operate without disturbances.

Also, partitioning of the house like breaking down walls or fitting doors, to enable easy movement from one room to another have cost implications,’’ he says.

“The compound’s design also changes depending on what plan you have. It calls for the creation of an environment that favours the kind of business you are doing,’’ Mugole adds.

Twina says some functions end late in the night, so the noise is so inconveniencing.

‘‘Also, the inconvenience of having people party in your home makes the children uncomfortable. You either lock them up in the house or take them out until the wee hours of the night,” she explains.

“However, if you are determined, you can overcome any challenge that may come your way. After all, there is no gain without pain,” Twina notes.

Factors to consider

KCCA deputy spokesperson Robert Kalumba says before you start building, you need a plan that is approved by the city council authorities.

Even if you change your mind about the plan after building, the authorities have to approve it before you continue with the construction.

An occupation permit is also vital before you occupy the building whether it is for commercial or residential purposes.

In case you do not follow the required steps, you face the risk of having your building demolished by authorities.

Kalumba says there are rules that must be followed while constructing a residential or commercial building. The rules differ, but must be adhered to.

 


Today, many people are increasing renting out their compounds as venues for functions. Those in the business say it is costly, but worth an investment in the long run

Growing trend

Kalumba says, although having a licence that allows one to operate a business is very crucial; some people are  illegally running businesses, especially in their homes without being licensed.

He warns that such people risk being arrested and penalised for their actions.

Gloria Acan left her office on Blacklines House in Ntinda, Kampala and set up a home office. ‘‘I like it because I make my money quietly at home and I do not pay rent to anyone. So, I save money on rent,’’ shse says.

Florence Sanyu, who also turned her home into a clinic, says the trend has grown because people have discovered new ways of making money at home.

 “You do not have to be in the city centre. Business can work anywhere provided you serve your target clientele’s interests,” she explains.

She adds that this works mostly for those people whose homes are located in a commercial area, but if the place is not good for commercial purposes, your business may take long to pick up.

She notes that some people even build residential houses, but due to the failure of tenants to pay in time, they set up businesses that generate money fast.

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