Relocation is more than just handing the employee the real estate section from the local newspaper
For relocating staff and the firms that employ them, housing is often a major source of aggravation, not to mention a costly one in terms of the time and money involved.
Taking care of employees’ housing needs is not as simple as handing the employee the local real estate section. Relocation experts need to consider home sales and purchases, rental options and neighbourhoods best suited for the relocating employee. Poorly managed, costs can soar and relocations can be put in jeopardy.
The real estate deal
Consider the case of an employee who was transferred from Sudbury, Ont., to Toronto.
The employer needed assistance because the employee was having trouble selling his home. For four months, the company was paying the employee’s rent in Toronto and reimbursing him for travel to and from Sudbury to visit his family and look after his property.
As it turned out, the employee’s house was overpriced. A more aggressive (read lower) list price was recommended and a guaranteed home sale plan suggested. The employers were reluctant at first, not wanting to lose money on the sale.
But when the house sold within the month and the employee, reunited with his family, became more productive at work, the company realized that this course of action had actually saved them money.
Money can also be saved by matching up buy and sell closing dates to minimize the inconvenience and cost of temporary housing.
Renting
While some companies are willing to accommodate relocating employees’ preferences for home ownership, many would rather save relocation costs by having employees rent instead of buy.
But when it comes to the inconvenience of moving, renters really face the same issues as owners. Finding a suitable rental can be a challenge, especially if there’s a need to move in the middle of the month. To keep costs low while optimizing searches, employers often hand this function over to a rental professional.
The right neighbourhood
Remember the real estate maxim: location is everything. A relocation can suffer when employees end up in the “wrong” part of town.
Consider the case of a single woman working for a small corporation in Vancouver transferred to a new office in north Toronto. Hoping to save money by finding cheaper rental accommodation outside of the city, her employer found her a basement apartment in Richmond Hill, an attractive satellite community north of Toronto. But with no car and no familiarity with her surroundings, the employee soon became very unhappy in her new environment. Her work performance suffered. Eventually, she moved to an apartment in Toronto — at her own expense and on her own time — where she found easier access to the amenities of a single lifestyle. Her performance improved as did her willingness to continue the assignment.
Conversely, employees relocating with families have other concerns. More often than not, failed transfers are the result of family issues involving schools, dual careers and, increasingly, elderly relatives. Baby boomers prefer to be in close proximity to their aging parents. Kids and schools in particular can determine the success of a transfer. It’s an area that needs to be addressed from the start.
By guiding transferring employees through real estate scenarios in various communities, employers can help them sell existing property and purchase a home in the new destination. A relocation professional can facilitate the process by working one on one with the employee to develop a lifestyle assessment based on the family’s needs.
This profile serves as a template for the move, guiding employees through community orientation, real estate agent contact, house-hunting, property viewing, negotiations and legal matters.
Minor details
Another aspect of relocation is the time spent by employees minding the more minor details of their move. It doesn’t make sense for a newly relocated executive to worry about being at home to wait for cable installation and furniture delivery. Delegate this task to someone else.
By focusing on every facet of the move — emotional, financial, logistical and otherwise — relocation experts can ensure careful planning and professional advice will help corporations and employees make every transfer a success.
Brenda Olive-Sullivan is vice-president, sales and product implementation for Royal LePage Relocation Services. She can be reached at (416) 510-5632 or [email protected].
Taking care of employees’ housing needs is not as simple as handing the employee the local real estate section. Relocation experts need to consider home sales and purchases, rental options and neighbourhoods best suited for the relocating employee. Poorly managed, costs can soar and relocations can be put in jeopardy.
The real estate deal
Consider the case of an employee who was transferred from Sudbury, Ont., to Toronto.
The employer needed assistance because the employee was having trouble selling his home. For four months, the company was paying the employee’s rent in Toronto and reimbursing him for travel to and from Sudbury to visit his family and look after his property.
As it turned out, the employee’s house was overpriced. A more aggressive (read lower) list price was recommended and a guaranteed home sale plan suggested. The employers were reluctant at first, not wanting to lose money on the sale.
But when the house sold within the month and the employee, reunited with his family, became more productive at work, the company realized that this course of action had actually saved them money.
Money can also be saved by matching up buy and sell closing dates to minimize the inconvenience and cost of temporary housing.
Renting
While some companies are willing to accommodate relocating employees’ preferences for home ownership, many would rather save relocation costs by having employees rent instead of buy.
But when it comes to the inconvenience of moving, renters really face the same issues as owners. Finding a suitable rental can be a challenge, especially if there’s a need to move in the middle of the month. To keep costs low while optimizing searches, employers often hand this function over to a rental professional.
The right neighbourhood
Remember the real estate maxim: location is everything. A relocation can suffer when employees end up in the “wrong” part of town.
Consider the case of a single woman working for a small corporation in Vancouver transferred to a new office in north Toronto. Hoping to save money by finding cheaper rental accommodation outside of the city, her employer found her a basement apartment in Richmond Hill, an attractive satellite community north of Toronto. But with no car and no familiarity with her surroundings, the employee soon became very unhappy in her new environment. Her work performance suffered. Eventually, she moved to an apartment in Toronto — at her own expense and on her own time — where she found easier access to the amenities of a single lifestyle. Her performance improved as did her willingness to continue the assignment.
Conversely, employees relocating with families have other concerns. More often than not, failed transfers are the result of family issues involving schools, dual careers and, increasingly, elderly relatives. Baby boomers prefer to be in close proximity to their aging parents. Kids and schools in particular can determine the success of a transfer. It’s an area that needs to be addressed from the start.
By guiding transferring employees through real estate scenarios in various communities, employers can help them sell existing property and purchase a home in the new destination. A relocation professional can facilitate the process by working one on one with the employee to develop a lifestyle assessment based on the family’s needs.
This profile serves as a template for the move, guiding employees through community orientation, real estate agent contact, house-hunting, property viewing, negotiations and legal matters.
Minor details
Another aspect of relocation is the time spent by employees minding the more minor details of their move. It doesn’t make sense for a newly relocated executive to worry about being at home to wait for cable installation and furniture delivery. Delegate this task to someone else.
By focusing on every facet of the move — emotional, financial, logistical and otherwise — relocation experts can ensure careful planning and professional advice will help corporations and employees make every transfer a success.
Brenda Olive-Sullivan is vice-president, sales and product implementation for Royal LePage Relocation Services. She can be reached at (416) 510-5632 or [email protected].
