SIRVA Communications

A well-defined home finding assistance policy is a key component of a successful relocation. The ultimate goal is to have the transferee feel comfortable that they had sufficient time and adequate funds to secure new housing. This is best accomplished with a well thought out home finding/house hunting benefit – whether it is paid as a lump sum, as part of a larger lump sum or through expense reimbursement. When creating a home finding assistance policy, there are a number of key point that should be kept in mind:

Determining Benefit Level:
In the past, most companies allowed one trip ranging from three to seven days, however, it has been determined that one trip is not enough. When two trips are provided, the key is not to stipulate the number of days allowed per trip, but rather control the benefit by the number of days total. Other costs include food and lodging, so it is important to decide how you will handle these additional reimbursements.

Payment Options:
In the past, relocation policies stated that “reasonable” expenses will be paid, however, this has became problematic due to differing views on the definition of “reasonable.” For this reason, many companies have moved to a per diem on food. This way, no receipts are required for submission or approval.  Another popular best practice is to include the home finding/house hunting trip as one of the items in a Managed Lump Sum, along with temporary living and the miscellaneous expense allowance. This provides more flexibility with fewer rules for the transferee while controlling company costs through less receipt administration as well as reducing exception requests.

Timing:
Timing is key, especially when only one trip is provided. If the trip is taken too early in the process and prior to establishing value on the departure residence via the Broker Marketing Analyses (BMA), the trip may turn into a wasted expense potentially resulting in a request for an additional trip.

Preparation:
Prepare your transferee for the trip by first having professional input on the value of their current residence – typically a BMA from real estate professionals who specialize in relocations. It is also advisable to have your transferee meet with a preferred lender to discuss different financial options and get pre-qualified for a home loan.

For questions, contact globalconnections@sirva.com.