Homeowners who are transitioning into renters represent a new category of transferee, with greater and more specialized needs than classic renters, but fewer (and less costly) requirements than homeowners who are continuing as homeowners. This creates new challenges for employers and domestic relocation services companies. From a home equity perspective, some transferees might be walking away with nothing; many will have a sense of going backwards and of starting over again. It is important that these transferees are treated with tact and diplomacy – especially those who have received homeowner benefits from their employer in the past and are accustomed to that status.

Real estate partners play a critical role in the domestic relocation process. They should possess deep knowledge of local rental options, and be thoroughly briefed on the family’s needs, whether a modest apartment or a larger-to-luxury home in a prestigious neighborhood. By recognizing and addressing these specialized needs through policy, employers can facilitate a difficult relocation process, reduce stress and stigma and potentially save a great deal of money in the future. Domestic relocation management staff who work with “reluctant renter” transferees should be aware not only of applicable policies but also of underlying issues and appropriate responses.

The first step in the process may be to explore both purchase and rental options with the transferee, rather than assuming that the transferee will continue with their current housing option. The transferee might find that continued home ownership is attainable after all, depending on the programs available, the cost of living at the destination and other factors. Alternatively, a transferee who initially associates the “renter” label with his college apartment may, upon closer examination, be pleasantly surprised at rental housing stock and value.

Since so many of these “reluctant renters” have needs that go well beyond the basic renter package, employers can find themselves with numerous exceptions and the possibility of inequitable treatment and unintended precedents. To fully address the varied needs of today’s renter population, it’s worth considering several tiers of renter benefits. For today’s reluctant renters, potential domestic relocation benefits could include property management, a duplicate housing allowance, more comprehensive destination services, spouse/partner career assistance and creative household goods shipping arrangements such as split shipments. If we value these employees enough that we are prepared to invest in domestic relocation for them, we should be willing to take a more flexible and holistic approach to employee mobility. By resisting the instinct to classify transferees as renters or homeowners without knowing their situation or mindset, you can deliver far more targeted and valuable assistance. In doing so, you will better utilize key human resources and reduce costs while preserving transferees’ dignity and worth.

According to Worldwide ERC’s 2010 U.S. Transfer Volume & Cost Survey, the average cost to move a current employee renter is $20,750, versus $90,017 for a current homeowner. This homeowner figure does not consider potentially substantial loss-on-sale benefits. Even if the average renter figure is increased somewhat to include enhanced services, the employer will be ahead of the game. And of course, these new renters may be easier to relocate in the future when the need arises.

Trying to find a relocation company to help with corporate relocation services? Then visit the corporate relocation specialists at www.TRCGS.com. TRC Global Solutions provides domestic and international relocation services for business, government and military.

Trying to find a relocation company to help relocate employees? Then visit the corporate relocation specialists at http://www.trcgs.com. TRC Global Solutions provides domestic and international relocation services for business, government and military.
http://www.trcgs.com

Author Bio: Trying to find a relocation company to help with corporate relocation services? Then visit the corporate relocation specialists at www.TRCGS.com. TRC Global Solutions provides domestic and international relocation services for business, government and military.

Category: Business
Keywords: Employee relocation services, business relocation services, corporate relocation