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Managing Short-term Housing Costs
Under most standard relocation policies, short-term housing benefits are offered in 30-day increments. Since it takes an average of 51 days to close on a house, employers frequently end up offering an average of 60 days of short-term housing, depending when the clock starts ticking. And, in certain situations, exceptions are required, so employees can stay longer.
That can be an expensive proposition. By one industry estimate, short-term housing costs an average of $4,000 per month. Obviously, it’s in the employer’s interest to manage its short-term housing arrangements carefully.
One effective way to keep short-term housing costs down is to offer longer house-hunting trips, especially in competitive markets. This way, employees are more likely to find a place to live the first time around, likely saving employers money in the long run.
For employers that outsource their relocation programs to third-party relocation companies, there’s another option as well. Some relocation providers have gone out of their way to find cost-effective short-term housing solutions—such as striking discounted agreements with national hotel chains—so they can offer their clients easy, quality, affordable options.
At the end of the day, short-term housing is one important piece of the complex corporate relocation puzzle. And yes, it is complex indeed—as more employers simultaneously commit to improving the employee relocation experience while keeping a lid on costs. The good news is, there are solutions—and they’re closer than you think.