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

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.

3 Benefits of 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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