CapRelo Blog

The Need for Rental Services in a Relocation Package

Posted by Jim Retzer on Tue, Sep 30, 2014

One of the most challenging aspects of professional relocation involves helping employees find ideal housing solutions. While plenty of companies offer home buying help, many organizations miss out on addressing their employees’ need for advice and services related to home rentals.

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Serving Employees Who Need to Rent Instead of Buy

Executives are often surprised by how many relocating employees choose renting over buying a home in their new city or town. Some employees prefer to hold off on buying until they’ve had time to explore the area or until they’re certain they want to live there for a significant amount of time.

Find out more about real estate considerations in your relocation policy with our free article.

Other employees are actually unable to buy a new home – possibly because their current home is underwater, has lost a significant amount of value or simply isn’t selling in the current market. The prospect of having two mortgages is enough to keep most professionals up at night, so finding a comfortable rental property is a smart option for individuals and families in this situation.

Employees who are being relocated for an indefinite period of time – whether it’s six months or three years – are understandably reluctant to purchase a home in their new city or town. Looking at rental options provides these employees with more flexibility and gives them the freedom to tailor their rental terms based on the specifics of their work assignments.

Providing Essential Rental Services

It’s all too easy to assume that the home rental process is less complicated than the home buying process. In fact, numerous steps, services and insights are necessary to match an employee with the ideal home rental.

Companies should start by providing extensive area tours to help employees become familiar with a new city or town. Giving employees a thorough insider’s view gets them excited about moving and helps them spot the areas they might like to live in or explore.

A relocating employee has enough to think about without spending hours researching demographics, walkability, public schools, transportation options and other important information about different neighborhoods. Compiling and delivering neighborhood profiles speeds up an employee’s process of choosing the area that fits their needs.

Finding the right rental property can involve almost as many moving parts as purchasing a home. Arranging for meetings with landlords, setting up property inspections and comparing lease terms are all necessary processes that are carried out more smoothly with the assistance of a professional rental agent. 

Once an employee has settled on a rental home, companies can provide information on DIY services, such as pet registration, cable and internet setup, utility connections, vehicle registration and all the other essentials that allow employees return to their regular routines.

As important as all these steps are, organizations should note that each employee will have a unique set of relocation and living needs. Providing access to tailored professional rental services not only removes any hesitations employees may have, but it helps organizations attract and retain the top talent that fuels future success.

Real Estate Considerations Article

Topics: Rental Issues, Renting Versus Selling Your Home

Real Estate Relocation Features for the Medical Industry

Posted by George Herriage on Tue, Jul 30, 2013

Medical employees, whether new hires or current staff, are often most concerned with having to sell their homes quickly at less than market value when faced with relocation. While most prospective transferees in all industries have these concerns, key medical personnel with these fears can impact entire communities, should they object to relocation.

Offering real estate-related assistance features in your relocation policy will appeal to medical professionals of all levels making recruiting and retaining needed talent a success.

Real Estate Features in a Strong Relocation Plan

Helping smooth out the transfer of key medical personnel is a major benefit of properly designed relocation programs. Real estate assistance may be the most important features of winning relocation policies focused on recruiting medical professionals. Among the wide spectrum of real estate features, the following are very popular with employers and employees alike.

  • Assistance selling the employee’s current home.

    Engaging an experienced real estate firm to sell the employee’s current home and reimbursing the transferee for the expenses to sell is a valuable feature for medical professionals.
  • Financial assistance for the loss on sale of a home.

    Including loss on sale reimbursements at first can appear daunting. However, you have the ability to control your cost by setting a maximum reimbursement level that is clearly stated in your written policy, which will be most competitive.
  • Retaining property management professionals to rent or facilitate the sale of an employee’s home.

    Qualified property management firms can perform two important tasks for your transferees and the company. Second, if the market makes it difficult to sell homes, property management firms can rent homes to qualifying prospective tenants to collecting rents.
  • Offering company-paid home finding trips, typically two, for the transferee and his or her spouse and/or family.

    House hunting in a new, unfamiliar location is challenging, sometimes frustrating. Relocation policies that include one or two home finding trips are highly attractive to medical professionals.
  • Partnering with an experienced, relocation savvy real estate agent, in the new area to help the transferee find suitable housing.

    The unfamiliarity with a new location causes transferee concerns. Experienced real estate agents working for transferees eliminate the mysteries and fears of finding the right home in the right neighborhood.
  • Arranging temporary living quarters while the transferee searches for or awaits the closing on a new home.

    Often, medical professionals are needed in new locations quickly. Even after multiple house hunting trips, transferees may not find acceptable homes or experience delayed closings. Medical employers offering furnished apartments, condos and single family homes as temporary housing for transferees will attract the best talent.
Free eBook:  A Guide to Developing  Relocation Policies
These real estate relocation features form the foundation of competitive relocation policies for medical employers. Key transferees appreciate these benefits, making employers that offer them more attractive to relocating medical professionals.

Topics: Home Selling and Purchase Assistance, Rental Issues, Temporary Housing, Tiered relocation packages, House Hunting Trips

When to Offer Rental Services Programs at Origin and Destination

Posted by George Herriage on Wed, Jun 12, 2013

for_rent2.jpgAs more homeowners become renters, employers should understand and respond to this trend. Rental services are more important than ever due to this desire or condition. Rental services typically fall into two basic categories.

  • Short-term, temporary rental assistance.

  • Long-term, more permanent rental services.

 

When employers should offer these services depends on a variety of conditions. Some of the more common situations that make rental services valuable to transferees and the company include the following:

  • Difficulty in selling the current home.
    While down housing markets can impede selling a home, even hot real estate markets offer no guarantees of selling a home fast at an acceptable price. In some cases, the employee and family love their home to the extent they cannot conceive of finding another duplicate, resulting in the employee rejecting a lucrative relocation offer. Employers need to address this situation with home selling assistance and rental services at the new destination.

  • Inability to purchase a because of affordability or financing issues.
    The cost of living in the destination location may prohibit some transferees from affording replacement homes. Employer-offered rental services can help solve this problem. Further, the potential transferee, because of credit issues or interest rate spikes may not qualify for a sufficient mortgage in the new location. Once again, offering rental services, both monetarily and in the form of expert assistance.

  • Temporary or indefinite relocation job assignments.
    In the early 1980s, with mortgage rates as high as 18 percent, many transferees didn't bother to selling their homes, but simply rented residences in their new location. Those employees relocating to temporary or jobs of indefinite duration often adopt the same approach. Employers offering strong rental assistance will attract or retain more key employees under these conditions.

Employer relocation programs that offer rental services for renters and employees meeting these conditions get the benefit of satisfied transferees, while enjoying elements of cost control. Whether offering temporary housing for transferees not yet able to buy another home or renters who seek a more permanent residence, employers who include rental services will attract and retain higher quality, better performing employees.

Rental services need never become a relocation budget buster, as employers can arrange rental situations that are cost effective. In the case of temporary and indefinite assignments, rental services are indispensable benefits that will separate your company from the crowd of competition trying to get and keep the best employees available.

 

Download Our Free  Rental Services  Whitepaper

 

Topics: Rental Issues, Temporary Housing, Popular Rental Lease Assistance Features

Rental Lease Cancellation and Assistance

Posted by George Herriage on Tue, Sep 18, 2012

Relocation assistance often focuses on helping new or transferred employees sell their homes. Often overlooked is the help needed for those key employees who are renting or leasing homes. When relocating at their employer's wishes, renters often need help in making graceful and financially reasonable exits from their current homes.

Legal Lease/Rental Termination Conditions

You'll not be surprised to learn that state laws can vary widely regarding permission for tenants to terminate lease/rental agreements. For example, if you enlist in the military, some states permit a legal, early termination of a lease, while other states do not.

In some jurisdictions, a tenant who must relocate to an elderly care facility may legally terminate a lease early. Some states even allow people to move without penalty if their current employer mandates a relocation.

Check your state laws to learn what, if any, legal provisions exist to help simplify your relocation if you have a valid lease. Most states define rentals as month-to-month implied contracts, meaning that only a 30-day notice of termination is necessary.

But, as always, take nothing for granted. Before asking your relocation company or employer for assistance, learn precisely what help you need. The terms of your lease and prevailing state law will dictate the level of assistance you need.

Lease Cancellation Issues

Leases can pose more complex problems for lessees, employers and relocation companies than typical shorter-term rental dwellers. Leases are usually for much longer terms, typically one-year periods or longer. Most states offer strong protection for landlords with tenants having valid leases.

Having your employer or relo professional negotiate a buyout or finding a sub-tenant, if permitted, is more important when you have a signed lease. Fairly negotiated leases benefit both lessees and landlords. Both parties enjoy protection. Unless specifically waived in the lease or if early termination is permitted by state law, penalties will apply as lessees are responsible for the payment of the entire lease contract.
   
Renting Versus Selling Your Home

Circumstances may present the option of renting, instead of selling your home. Top relocation professionals usually offer high quality property management services. This assistance typically includes collecting and recording rental payments, paying expenses, such as utilities and mortgages. and delivering monthly reporting to the homeowner, with all transaction details included.

Should you prefer the longer-term protection of offering a lease, relocation professionals can negotiate this agreement for you with a tenant. Depending on your needs and wishes, some relocation organizations offer total property management services, including advertising, screening potential tenants and helping you set appropriate market prices.

Rental Issues

Local housing laws influence the ease or difficulty for transferred employees needing to move prior to their rental term expiration. Because of the usually shorter landlord notification requirements, the focus often becomes a potential forfeiture of security deposits, normally equal to at least one month's rental fee.

At times, renters can escape financial loss by finding a sub-tenant. However, their rental agreement must permit renters to sub-let their home or apartment. Vacancy notification requirements remain less financially daunting if you're renting on a month-to-month term.

Download Our Free Article on Incorporating  Property Management
Individual states, sometimes even cities and counties, have separate regulations and protections for landlords and tenants. Whether you're interested in early lease cancellation or wishing to rent your home after you move, relocation professionals can negotiate a favorable buyout for you or effectively manage your rental property.

 

Topics: Rental Issues, Lease Cancellation Issues, Renting Versus Selling Your Home, Rental Lease Cancellation Assistance

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