The Rental Policies You Need to Know About
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Transcript of The Rental Policies You Need to Know About
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