The Rental Policies You Need to Know About
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It is important for you as an employer to fully understand the process that your relocating transferees who choose to rent go through. This slideshare will offer some insight into the most important parts of the process.
The Rental Policies You Need to Know About
- 2. The housing market is going! through a shift
- 3. What was once a homeowner dominated market is now beginning to transition towards renting, and with that comes a lot of adjustments.
- 4. More and more people, especially Millennials, are choosing to rent property over buying it
- 6. Home purchases seem too risky to the younger generation
- 7. What if they don¡¯t like their city?
- 8. What if they are unhappy with their new job?
- 9. Renting is viewed as an ! opportunity to test the waters
- 10. It is important for companies to recognize and understand that they need to accommodate renters as much as they do their homeowners
- 11. Being prepared and properly informed about the rental market (and the process as a whole) is going to be the best tool that you can have at your disposal ¨C ! for both your sake and your employees
- 12. We have outlined the renting phenomenon and everything you need to know about how to approach it to benefit your transferees
- 13. 1. The Reason For The Shift
- 14. There is a high demand for skilled talent to fill talent gaps due to an aging population and Baby-boomers leaving the workforce
- 15. This has led to an increase of hiring and relocating Millennials right out of college
- 16. And since Millennials love to rent¡
- 17. This has resulted in a spike of the amount of renters present in the workforce
- 18. Not only are Millennials apprehensive about the commitment that comes along with homebuying¡
- 19. ¡they likely aren¡¯t coming into the housing marketing with the most attractive credit score.! ! in fact¡
- 20. 2/3 of the graduates walking away holding their shiny new degree ! are also carrying a whopping ! $26,600 ! in debt
- 21. Along with this, there are many other sticky situations homeowners can find themselves in
- 22. Foreclosure
- 23. Short Sale
- 24. Bad Market
- 25. With these less than ideal situations relocating transferees can find themselves in, it is no surprise that they have gravitated towards renting instead of buying
- 26. 2. What You Need to Know
- 27. There are many challenges existing in the market today
- 31. With this, real estate brokers and agents are working even harder to provide services to renter transferees
- 32. Even with this, renters aren¡¯t receiving the level of assistance they need due to a lack of attention from employers
- 33. For example:! Many companies do not understand rental assistance and finder¡¯s fees
- 34. Let us explain
- 35. Finder¡¯s Fee: a fee for ! helping a tenant to ! find an apartment
- 36. Rental Assistance: services provided to help the relocating employee familiarize themselves with their housing options
- 37. Agents may be with a transferee from dawn to dusk until a residence is located
- 38. Although agents do their ! best to set expectations ! with the transferee up front¡
- 39. ¡situations may arise where an agent continues to work with the transferee ! for several days, but only gets compensated for the number of allowed days provided by the employer
- 41. There are a lot of possible roadblocks that a renter can face
- 42. While current renters won¡¯t experience a loss on sale, that doesn¡¯t mean leaving an old apartment behind doesn¡¯t come with its own set of costs as well
- 43. The result of all this:
- 44. A landlord controlled market.
- 45. Landlords are less likely to ! negotiate on price, as well as other considerations including the ! inclusion of a lease-break clause ! in the lease agreement
- 46. This can cause a big strain on those with a time-sensitive move or are only moving for a temporary assignment
- 47. Employers can often find themselves having to cover any of these additional costs their transferring employee faces if they are in a time crunch
- 48. Every little cost adds up!
- 49. And every bit of reimbursement helps
- 50. Lump sum and relocation ! technology alike have now begun to ! fit the mold of renters needs
- 51. This is substantially more difficult ! to handle for an expatriate
- 52. Does your expatriate have credit?
- 53. Do they have a visa?
- 54. Do they have an Employment Letter from their previous employer?
- 55. Your expatriate needs all of these things before they even start to think about the process of actually obtaining a place to live
- 56. Prepare your expatriate for
- 57. High rent depending on location
- 59. Transportation
- 60. The more you can streamline the process for each transferee, the more structure and guidance your transferee is going to feel, making it easier on you in the long run
- 61. 4. The resources your transferee needs
- 62. Finding a place to live is a stressful task with which transferees need your guidance
- 64. Prepare them for the costs ! they will face if they are going ! to need temporary housing
- 65. And make sure you understand the rental market to give them plenty of time to work out their accommodations
- 66. If you can avoid confusion,! stress, and anxiety¡
- 67. ¡the relocation process will be smoother for both you, making for a happier (and more productive) employee