Relocation Packages
by Valerie El-Jamil
Rev’d 2015
Copyright © 2015, Valerie El-Jamil

Every move has emotional impactsinvolved with leaving the people and lifestyle you’ve grown accustomed to, so to reduce stress, be certain you are prepared for the financial impacts as well by negotiating a great relocation package.

When negotiating, keep in mind that relocation expenses may include:

  • Shipment of household and personal goods, Including: packing (preferably, the company pays for professional packing, but if you choose to pack yourself, the company may reimburse for the costs of packing supplies), insurance, transportation, interim storage, delivery to the permanent location once one is secured, and unpacking and set up of furniture and belongings at the new permanent location.
  • Shipment of vehicles, including insurance, transportation, and registration fees at the new location. Keep in mind that many states now require people coming from out-of-state to pay a “value” tax the first year a vehicle is registered in the state.
  • Travel expenses (transportation meals, lodging) for family members and pets. If taking pets, remember to take veterinary records and to make arrangements for temporary housing of the pets if they cannot stay with you where you will be temporarily housed. Some companies will help employees with these expenses, so it doesn’t hurt to ask.
  • Housing costs:
  • Temporary housing while you’re seeking or waiting for permanent housing in the new location.
  • If you rent, assistance in breaking your current lease. If you own your residence, assistance in the sale of your existing home.
  • Commissions and other costs of sale (e.g., carpet cleaning, termination of utilities, mortgage prepayment penalties and/or points, buyer’s closing costs if part of the sale, etc.).
  • If you are not able to sell the residence before you must move to the new location:
  • The company assumes responsibility for a property management company as well as payments, taxes, and insurance until your home is sold, or,
  • The company offers a price guarantee wherein it will pay the difference between the net selling price and a specified price for your old home, or,
  • The company offers a purchase guarantee wherein if you cannot sell the home for a specified price within a stated time, the company will purchase your home for that price.
  • Assistance with securing a home in the new location, including:
  1. Transportation and lodging for you and your spouse for home finding trips in advance of you actually starting to work in the new location.
  2. If purchasing a home, buy down on the interest rate or provision of low or no interest loans.
  3. Home inspections.
  4. Deposits for utilities.
  • Assistance for your spouse in obtaining employment in the new location, including the costs for your spouse to obtain employment:
  • Employment agency fees.
  • Coursework and/or a certification examinations to obtain a similar license in the new location to one held in the previous location.
  • Educational requirements for children. If moving to an area with lower educational standards than your home location, will you need to put your children into private school to maintain the educational standards of your home location?If moving to an area with higher educational standards than your home location, will your children need tutoring or mentoring to bring them current with school curriculum in the new location?
  • Inquire about a company car (with insurance).
  • Are there professional clubs in the new location where it would benefit your employer if you were a member of one or more of those clubs? If so, some companies may pay for your membership fees.
  • Insurance differentials on your personal belongings may result because of the cost of home, vehicle, and other insurance against conditions unique to the new location, for example, natural disasters that normally occur in the region. (Think: earthquake insurance in California, hurricane insurance in Florida, and so on.)
  • Miscellaneous expenses.

While this is a fairly comprehensive list, it is by no means a complete list. It is up to you to evaluate all of your expenses. Keep in mind that the above is “the ultimate,” and most executives do not get everything they ask for, but it doesn’t hurt to ask as long as you are not making demands.
Some companies will pay for individual items directly, some will give you a lump sum, others may do some combination of the two.Before you negotiate your relocation package, you may want to ask HR about how the company handles relocation and what is typically included in relocation packages.

Some companies have agreements with realtor networks that you can use to discuss the new location to supplement your own independent research:

  • What are the characteristics of different residential areas in and around the new location?
  • What are the school ratings in various school districts in the new location?
  • What are the amenities new city offers as well as in the different areas one might choose to live?
  • What is the cost of living differential between your home location and the new location?
  • While some companies provide limited or no demographic information, you should at least ask for things such as median income and crime rates (as well as the predominate types of crime) of areas the realtor is recommending you consider. And remember, nothing is better than your own research and observations.

Always keep in mind that advance preparation and research will make your move easier for everyone involved.