Home-finding trips are a common part of many relocation programs, enabling employees to visit their new location to find permanent housing before they start their new job. This typically covers the cost of one trip including travel to and from the destination, temporary accommodations for the duration of the trip, transportation and meals, and sometimes a local resource such as a rental or real estate agent.
Having housing sorted out before the actual relocation means your employee can get settled and be ready to work on day 1, rather than worrying about where they'll live, living out of a suitcase, or being distracted with apartment/house hunting appointments after they move.
The problem is that home-finding trips are often rushed and confusing, and most benefits only cover 1 home-finding trip that's typically limited to 4 or 5 days. It's very difficult for anyone to find a place to live in such a short time - especially in an area they're not familiar with.
As a result, one of the most common exception requests for relocation policies is for an extension of the short-term housing and storage of household goods components due to not being able to secure permanent housing before the move. This is becoming even more common with the current supply shortage for housing. With an average of two months to buy and sell a home, it's pretty unlikely your employee will be able to successfully find housing in one trip. This means they'll need longer short-term housing and household goods storage.
While the best thing to do is approve these exceptions (otherwise you risk a stressed, frustrated employee who feels unappreciated by the company), it can cause your relocation budget to quickly spiral out of control. As many of our clients have realized, you can minimize this impact by adjusting your policy coverage, specifically the number of home-finding trips.
Household goods storage and short-term housing are two of the most expensive pieces of a relocation package. Let's take a look at the costs of each:
Average Relocation Costs
| Flight (employee + spouse) | $800 |
| Transportation (ex: rental car) | $200 |
| Accommodations (5 days) | $650 |
| Meals | $500 |
| Short-term Housing (1 month) | $4000 |
| Household Goods Storage (1 month) | $200 |