As 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.