Although profits are guaranteed in residential real estate investment through rental; a feasibility study is the scientific indicator that guides businesspeople toward achieving the highest possible return on investment from the project by avoiding potential risks that may arise during the course of the business and its details as they work toward renting out residential apartments as a successful and profitable venture.

For example, we find that demand is increasing for small family-sized residential units in specific neighborhoods and areas due to their proximity to workplaces such as universities and colleges. These types of apartments are sought after by workers and students, and if they are designed and built according to an optimal feasibility study, they can be best utilized as furnished rental apartments, given their small size, and given the high income potential of this type of short-term rental, the apartments must be fully equipped with all necessary furnishings, appliances, and decor. This is in addition to providing services that benefit customers seeking comfort in exchange for their investment.

In high-investment furnished residential projects, it is essential to recruit staff specialized in the field of furnished apartments, as well as others with expertise in hotel management, which serves as a strong draw that enhances the qualitative value of the sector’s economics. Additionally, a property manager and a facilities manager must be appointed to oversee operations and resolve any issues faced by residents or project staff.

By comparison, the rate of return on investment for a standard apartment does not exceed 10%, but when the costs associated with renting a furnished apartment are factored in, the return is no less than 20%, and every additional service and amenity further increases the project’s return.

*Najd Real Estate