Renter Policies

The housing market is going� through a shift

What was once a homeowner dominated market is now beginning to

transition towards renting, and with that comes a lot of adjustments.

More and more people, especially Millennials, are choosing to rent

property over buying it

Home purchases seem too risky to the younger generation

What if they don’t like their city?

What if they are unhappy with their new job?

Renting is viewed as an �opportunity to test the waters

It is important for companies to recognize and understand that they need to accommodate renters as

much as they do their homeowners

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 – �

for both your sake and your employees

We have outlined the renting phenomenon and everything you

need to know about how to approach it to benefit your transferees

1. The Reason For The Shift

There is a high demand for skilled talent to fill talent gaps due to an

aging population and Baby-boomers leaving the workforce

This has led to an increase of hiring and relocating Millennials

right out of college

And since Millennials love to rent…

This has resulted in a spike of the amount of

renters present in the workforce

Not only are Millennials apprehensive about the commitment that comes

along with homebuying…

…they likely aren’t coming into the housing marketing with the most

attractive credit score.��

in fact…

2/3 of the graduates walking away holding their shiny new degree �are also carrying a whopping �$26,600 �in debt

Along with this, there are many other sticky situations

homeowners can find themselves in

Foreclosure

Short Sale

Bad Market

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

2. What You Need to Know

There are many challenges existing in the market today

Higher Rent Prices

Limited Availability

Stubborn Landlords

With this, real estate brokers and agents are working even harder to

provide services to renter transferees

Even with this, renters aren’t receiving the level of assistance they need due to a lack of attention from employers

For example:�Many companies do not

understand rental assistance and finder’s fees

Let us explain

Finder’s Fee: a fee for �helping a tenant to �find an apartment

Rental Assistance: services provided to help the relocating employee familiarize themselves with their

housing options

Agents may be with a transferee from dawn to dusk until a residence is located

Although agents do their �best to set expectations �

with the transferee up front…

…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

3. The Challenges

There are a lot of possible roadblocks that a renter can face

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

The result of all this:

A landlord controlled market.

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

This can cause a big strain on those with a time-sensitive move or are only moving for a temporary assignment

Employers can often find themselves having to cover any of these

additional costs their transferring employee faces if they are in a time

crunch

Every little cost

adds up!

And every bit of reimbursement helps

Lump sum and relocation �technology alike have now begun to �

fit the mold of renters needs

This is substantially more difficult �

to handle for an expatriate

Does your expatriate have credit?

Do they have a visa?

Do they have an Employment Letter from their previous employer?

Your expatriate needs all of these things before they even start to think

about the process of actually obtaining a place to live

Prepare your expatriate for

High rent depending on location

School districting

Transportation

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

4. The resources your transferee needs

Finding a place to live is a stressful task with which transferees need your guidance

Encourage homefinding trips

Prepare them for the costs �they will face if they are going �to need temporary housing

And make sure you understand the rental market to give them plenty of

time to work out their accommodations

If you can avoid confusion,� stress, and anxiety…

…the relocation process will be smoother for both you, making for a happier (and more productive)

employee