Your transferee has just landed a fantastic new promotion. You’re happy, they’re happy and eager to get the relocation process started. After the adrenaline of the news settles, the stress starts to creep in for the transferee, they have to relocate. Suddenly, the process can seem intimidating and overwhelming. How do they start their rental search process, when they have no idea what they should be looking for in a new, unfamiliar place? As for the relocation company, how do you keep relocation costs as low as you can while providing the best service?
With renting in America at an all-time high, mobility professionals have few resources to help relocating employees who want to rent. Relocation Management Companies and Human Resource professionals find it challenging when creating their relocation policies to find revenue in the budget to support the renter population. Another fact is that most transferees prefer to move directly into a rental so they don’t have the added stress of having to move twice. They can get settled in more quickly at home, making the adjustment with their new position easier. Having the ability to move directly into their long term rental can help offset temporary housing costs for their employers, which can be a very significant expense.
The average vacancy rate in 2015 was only six percent, creating more demand than supply in many areas of the country. As this trend continues to grow, transferees who are renting will struggle to find housing in a timely manner. They will face more competition securing a rental due to a higher demand in the market. Although new apartment inventory will become available as developers complete new projects, less than 40% of relocating professionals want apartments. Most prefer the residential lifestyle of single-family home rentals, town homes and privately listed condos.
Finding the right rental home in the right community that meets all of their requirements is difficult for those needing to relocate quickly. Moreover, when children are involved, the schools are a top priority. Often, having the supplementary support of an area acclimation tour and rental-finding process, is crucial to a successful move for the entire family, not just the employee.
Understanding that offering rental assistance decreases the amount of temporary housing needed as well as the overall stress for the transferees and their families, it may become more common to see this support offered in company relocation policies in the future.
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