What should you negotiate for in your job relocation package?
Do you have to relocate a new or current your job? This process is never easy – apart from the upheaval for you and your family, you are most likely moving to a city or town you are not familiar with. The entire process is even further complicated if you need to sell the house you are currently living in to make the move.
With so much on your plate, relocating for a job can be stressful and overwhelming. It is also a very expensive venture – you’ll need to pay for movers, scouting expeditions to get to know the city or town you are moving to, travelling costs – the list goes on. If you are planning on buying a new home in the city you are moving to, you also need to find a neighbourhood you would like to live in, new schools for your children – all from a distance away – and so much more.
Is there a way to simplify and streamline this seemingly tangled and complicated process?
As always, working with licensed and qualified real estate agents – both while selling your home and during the hunt for your new home to rent or buy long distance. To sell your home in the shortest timeframe at the best price, the right real estate agent will be invaluable, and handle all the nitty-gritty of marketing the property while you focus on the move and other complications that go hand-in-hand with relocating to a new city or town. At the same time, the agent looking for your new home to rent or buy will be your eyes and ears on the ground in the new city you are moving to – and the right agent will understand your needs, let you know of appropriate listings, etcetera. This can be a great help during the relocation and selling process.
Another way you can simplify and streamline the selling and moving process is to negotiate a favourable relocation package with your employer. These days it is unlikely that an employer will cover all of the costs associated with relocating to a new town or city, but there are definitely expenses that you should try to negotiate for. So, what exactly should you ask for in a relocation package? With the process already so overwhelming, we’ve compiled a guide to what to negotiate for, and what to consider.
Full-service moving expenses
Moving all your possessions and furniture to a new town or city is likely to be your biggest expense when relocating. This makes it a vital aspect to negotiate for in your relocation package.
One of the best places to start is to get quotes from several moving companies. These quotes should be as accurate and comprehensive as possible – don’t simply ask how much it would cost to move the contents of a four-bedroom house from point A to B, for example. Provide the moving companies with itemised lists of your possessions – some large items might be more expensive to move, for example a speciality item like a piano, while some fragile items might cost more to package, making the move more expensive. If you simply ask for a ballpark figure, you might have a nasty surprise when you get quoted for the actual move. Also, you want to have all your ducks in a row when negotiating with your employer.
Remember to include all the costs involved in the move, including packaging, the costs of the company packing up your home, storage of your possessions if applicable, etcetera.
Once you have compiled all the moving costs and received quotes from different moving companies, present these to your employer. They will see that you have been thorough, while quotes from multiple companies will show that you did your homework and aren’t grasping at straws.
Temporary stay rentals
Even though you might be planning to buy a home in the city or town you are relocating to, you might want to be there to experience the area itself before choosing a neighbourhood to settle in. You might want to see what different suburbs and areas offer in the way of amenities, schools, travelling distance to your place of work, traffic, restaurants and more before deciding where to invest in a new home.
If this is the case, you will probably choose to rent for the short term while you find your feet in the new city or town. Perfect Agent can help you appoint a real estate agent to help you find the perfect rental home – free of charge. Contact us today.
The drawback to a temporary stay rental is that you will need to get settled in the new town or city twice – once in the temporary lodgings, and again when you either start to rent a home on a long-term basis, or decide to where you want to buy. This can be particularly hard when you have pets and children. You will also most likely have to put most of your belongings into storage until you find a more permanent address.
However, it is understandable that you would want to get to know an area before signing a long-term lease or deciding to make a property investment – after all, if you settle in the wrong area, your experience and lifestyle can be negatively impacted.
While your company is unlikely to cover your short-term rental indefinitely, you can negotiate for them to cover up to three months while you get to know the city and decide where you would like to live more permanently.
One option might be for you to move to the new town or city ahead of your family. You can then explore the different neighbourhoods and find an area where you would like to settle more permanently before your family joins you – this means only settling your family once, only moving once, and needing a smaller temporary rental home, which will also make it a more affordable option for your employer, should they agree to cover your short-term rent for a few months. This option will also show the company that you are willing to be flexible, and are thorough in your research.
Real estate commission coverage
The commission you will be paying to the real estate agent selling your home could, depending on the price point of your home and the percentage of the commission, be quite hefty, and could even have covered all the costs of relocating. While your employer is under no obligation to reimburse you for the commission, you have nothing to lose by asking. You could even argue that if the company pays the commission to the real estate agent, you will be able to pay for the relocation yourself – depending, of course, on the amount of the commission and the costs of the relocation.
Are you relocating ahead of your family? If you are a one-car family, this could mean that you will need to rent a car while you wait for your family to relocate. You could negotiate for your company to cover or contribute towards this expense while you wait for your family to join you. Again, gather quotes from different car rental companies, and present these to your company while negotiating your relocation package.
Reimbursement for miscellaneous expenses
There are always unplanned expenses that pop up during a move or relocation – from penalties for cancelling memberships and contracts with service providers, to costs related to travelling with pets, etcetera. While your employer is unlikely to pay for all of these, they may be willing to negotiate a set sum that can be used for miscellaneous costs and expenses.
Scouting trips for you and your family
Your family might feel more comfortable with relocating to a new city or town if they actually get to visit and experience the area themselves before the move. Your company might be open to covering the costs of one or two scouting trips for your family as part of your relocation package.
Funds for a full-service relocation company
There are companies that offer a comprehensive turnkey service for employees or families relocating. They make all the arrangements on your behalf, which means much less hassle for you and your family. If your employer is in a rush for you to start working at the new location, you may be able to negotiate for them to cover the expense of using a full-service relocation company. Again, it would be best to gather quotes to present to the company when negotiating your relocation package.
Relocating for work can be a very stressful endeavour – especially if you are selling your home at the same time. By negotiating a beneficial relocation package with your employer, you can alleviate some of the anxiety surrounding the process.
Are you relocating for work? Partnering with a qualified, licensed real estate agent will allow to sell your home in the shortest timeframe for the best price. You also want to work with a top-performing agent to help you find the perfect home in your new city or town. Perfect Agent can help you find the right agent, no matter your needs – free of charge. Simply fill out a quick online survey, and our team of experts will get back to you within 48 hours with quotes from two to three licensed, top-performing agents in your area of interest. Contact Perfect Agent today.